The Ministry of Finance of Denmark
Negotiation of the state’s Microsoft agreement
The joint state agreements with Microsoft amount to approx. DKK 500 M over the contract length. Zangenberg assisted the Ministry of Finance of Denmark in the negotiations to ensure competitive prices and terms.
Conclusion of the State’s Microsoft Agreement
Concluding software agreements in the public sector is a tricky business. Public purchasing rules encounter a commercial reality characterised by strong counterparties, lack of transparency and de-facto monopoly conditions. In this context, knowledge of the market and pricing is absolutely key when it comes to achieving an optimum deal.
Under a National Procurement Agency (SKI) agreement (02.06), the state previously concluded joint state agreements with Microsoft. During the recent renewal and tender of this agreement, it was crucial to arrive at a framework that would facilitate competitive prices that reflected the state’s large purchase volume.
Software agreements usually feature a number of special clauses, which reflect the individual client’s specific needs and use of the software. This has a crucial impact on the pricing of the overall deal.
Deliberating on such matters requires in-depth market knowledge. You also need to be au fait with the major agreements in the market in order to establish sensible market discussions with relevant parties.
This is precisely the know-how that Zangenberg Analytics brought to the table. The result was market discussions and tenders, in which licences for specific user types were specified in such a way that prices could be competitive and the final agreement would be optimal for the state.
- Prices 21% below the prices they would have achieved on the basis of the traditional discount structure
- New agreements optimised for the benefit of customers
- Special product types for special sate user groups
Would you like to know more?
Frederik Bastkær Christensen
Partner & Managing Director
+45 23 60 34 05