Negotiating with Monopolists

 

How to successfully negotiate software agreements with the Major Players – what you must know to negotiate with SAP, Microsoft, Oracle, SalesForce and IBM

 

Experience has taught us that you can successfully negotiate with software vendors and others who have a de-facto monopoly if you prepare well. There is a lot of money at stake in negotiating your software agreements successfully and therefore it is an area that everyone should focus on. It requires a lot of preparation, special insight in addition to a special approach when negotiating software agreement with major players. Tune into this webcast, where you will be getting a lot of good tips on how to approach software negotiation. In this session two of Denmark’s leading advisers, Frederik Bastkær Christensen and Henrik Zangenberg, will be sharing methods, specialist advice and lots of up-to-date war stories. We look at the specifics that apply to Microsoft, SAP, and Oracle negotiations.

 


 

On this webcast, Zangenberg Analytics will focus on the basic drivers of software monopolists’ pricing and offer structure.

 

Negotiation roadmap – How to structure your negotiations with the major vendors:
  • Introduction to Zangenberg Analytics’ negotiation structure
  • Structure and sequence
  • Target pricing – what is the current Market Price and how is it used successfully in a proactive manner as part of your negotiation?
  • BATNA
  • Options – we explore the many elements in addition to pricing, which can be used successfully as part of your negotiation strategy to ensure that the outcome is a win-win
Lack of transparency – Overview of the latest developments in the vendors’ offer strategies:
  • The major software players systematically provide lack of transparency as part of the bidding process
  • We review the latest trends in software pricing and the solution structures
  • Software cases: Oracle, SAP and Microsoft
    • Financial services
    • Luxury goods
    • Retail
    • Manufacturing
Price dynamics:
  • Discount types and the approval process
    • Volume discount – how  is the  volume discount calculated?
      • A deep dive into weighted, tiered pricing and what it means. 5-9% erosion of net discounts for many large IBM, SAP and SalesForce customers
    • Special discounts
    • Year-end – does it really affect the pricing?
  • IBM split announced in October 2020: What are the first experiences of the impact on IBM’s software and infrastructure customers?
  • Review of bonus programme changes for SAP, Oracle, Microsoft and IBM
  • Indirect Access/Digital Access/Indirect usage – many names. Understand how real competition in product selection is reduced as a result of derived costs on competing products and platforms
    • Review of Solution Models for the largest vendors:
      • SAP
      • Oracle
      • Microsoft
Strategy to creating intransparency/inflating discount levels: 
  • Working with several list prices (e.g. from quantity brackets)
    • Comparing proposed price with list price from a different quantity bracket, ‘increasing’ the list price and thus discount in comparison
  • Working on a general level with large discount levels
    • Increasing discount from 90% to 91% does not appear as much, but does in fact correspond to a 10% drop in prices
  • Conceding most on products with high list price/discount level, to make the overall ‘before and after’ -picture appear as good as possible
  • Changing underlying quantities/products

 


 

Practical information

The webcast will be initiated with a presentation in English followed by an interactive Q&A session. As a participant you are required to register in advance. We are making use of Microsoft Teams. This webcast will be running on November 24th 2020 from 09:00 to 10:30 am (CET). Please register by sending an email to webcast@zangenberg.biz stating you wish to participate. You will subsequently receive an invitation with a weblink.

 

Henrik Zangenberg

CEO & PartnerMail: henrik@zangenberg.bizTlf: +45 30 57 50 07

Frederik Bastkær Christiansen

Partner and Managing DirectorMail: fbc@zangenberg.bizTlf: +45 23 60 34 05

Praktisk

Dato og tid:

24. november, 2020 09:00 - 10:30