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Negotiate SaaS Agreements That Are Built to Last

Leverage your unique position and find substantial cost savings.

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Contributors

  • Christiaan Murphy, Global Software Category Manager at CGI
  • Jeffery I. Gordon, SVP, author of Software Licensing Handbook & Mortgage Lending Vendor Operations Manager at BT&T
  • David W. Tollen, author of The Tech Contracts Handbook, Attorney & Founder at Sycamore Legal, P.C.

Your Challenge

  • Internal stakeholders usually have different – and often conflicting – needs and expectations that require careful facilitation and management.
  • SaaS solutions bring forth a unique form of “switching costs” that can make a decision to migrate solutions financially, technically, and politically painful.

Our Advice

Critical Insight

  • Conservatively, it’s possible to save 5% of the overall IT budget through comprehensive software and SaaS contract review.
  • Focus on the terms and conditions, not just the price.
  • Learning to negotiate is crucial.

Impact and Result

  • Take control of your SaaS contract negotiations from the beginning.
  • Look at your contract holistically to find cost savings.
  • Guide communication between vendors and your organization for the duration of contract negotiations.
  • Redline the terms and conditions of your SaaS contract.
  • Prioritize crucial terms and conditions to negotiate.

Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out how to redline and negotiate a SaaS agreement, review Info-Tech’s methodology, and understand the different ways we can support you in completing this project.

Guided Implementations

This guided implementation is a six call advisory process.

Guided Implementation #1 - Gather requirements

Call #1 - Create negotiation team
Call #2 - Write communication plan
Call #3 - Document use case

Guided Implementation #2 - Redline contract

Call #1 - Review and redline general terms and conditions
Call #2 - Review and redline SaaS-specific terms and conditions

Guided Implementation #3 - Negotiate contract

Call #1 - Negotiate contract

Onsite Workshop

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Book Your Workshop

Onsite workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost onsite delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

Module 1: Collect and Review Data

The Purpose

  • Assemble documentation.

Key Benefits Achieved

  • Understand current position before going forward.

Activities

Outputs

1.1

Assemble existing contracts.

  • Business Use Case.
1.2

Document their strategic and tactical objectives.

1.3

Identify current status of the vendor relationship and any historical context.

1.4

Clarify goals for ideal future state.

Module 2: Define the Business Use Case and Build a Stakeholder Team

The Purpose

  • Define the business use case and build a stakeholder team.

Key Benefits Achieved

  • Create a business use case to document functional and non-functional requirements.
  • Build an internal cross-functional stakeholder team to negotiate the contract.

Activities

Outputs

2.1

Establish a negotiation team and define roles.

  • RASCI Matrix
2.2

Write a communication plan.

  • Communications Plan
2.3

Complete a business use case.

  • SaaS TCO Calculator
  • Business Use Case

Module 3: Redline the Contract

The Purpose

  • Examine terms and conditions and prioritize for negotiation.

Key Benefits Achieved

  • Discover cost savings.
  • Improve agreement terms.
  • Prioritize terms for negotiation.

Activities

Outputs

3.1

Review general terms and conditions.

3.2

Review license and application specific terms and conditions.

  • SaaS Terms and Conditions Evaluation Tool
3.3

Match to business and technical requirements.

  • SaaS Contract Negotiation Terms Prioritization Checklist
3.4

Redline the agreement.

Module 4: Build a Negotiation Strategy

The Purpose

  • Create a negotiation strategy.

Key Benefits Achieved

  • Controlled communication established.
  • Negotiation tactics chosen.
  • Negotiation timeline plotted.

Activities

Outputs

4.1

Review vendor and application specific negotiation tactics.

  • Contract Negotiation Tactics Playbook
4.2

Build negotiation strategy.

  • Controlled Vendor Communications Letter
  • Key Vendor Fiscal Year End Calendar

Member Testimonials

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After each Info-Tech experience, we ask our members to quantify the real time savings, monetary impact, and project improvements our research helped them achieve. See our top member experiences for this Blueprint, and what our clients have to say.

Client

Experience

Impact

$ Saved

Days Saved

Bapco

Guided Implementation

7/10

N/A

N/A

City of Walla Walla

Guided Implementation

10/10

$46,328

5

Renown Health

Guided Implementation

9/10

$27,135

5

Armed Forces Benefit Association

Guided Implementation

9/10

N/A

N/A

City of Arlington

Guided Implementation

10/10

$2,647

5

Success Academies

Guided Implementation

8/10

N/A

N/A

Shelby County Government

Guided Implementation

10/10

$132K

20

Farmers New World Life Insurance Co Inc

Guided Implementation

10/10

N/A

N/A

Textron Inc

Guided Implementation

6/10

N/A

N/A

Emerson Commercial & Residential Solutions

Guided Implementation

10/10

N/A

N/A

AgeTech

Guided Implementation

10/10

$25,000

2

Renown Health

Guided Implementation

6/10

$13,236

2

Clark Builders

Guided Implementation

6/10

N/A

2

QuikTrip

Guided Implementation

6/10

N/A

N/A