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Price Benchmarking & Negotiation

Gain the upper hand with exclusive vendor negotiation intelligence.

You need to achieve an objective assessment of vendor pricing in your IT contracts, but you have limited knowledge about:

  • Current price benchmarking on the vendor
  • Pricing and negotiation intelligence
  • How to secure a market-competitive price
  • Vendor pricing tiers, models, and negotiation tactics

Our Advice

Critical Insight

Most organizations don’t have a full understanding of vendor pricing models, strategies, tactics, and motivations in contract negotiations and may have:

  • Limited pricing intelligence
  • Lack of awareness of vendor tactics and motivations during contract negotiations
  • Lack of executive relationships between both organizations

Impact and Result

Info-Tech has a three-phase approach to extract maximum value from your vendor:

  • Review proposal against current peer benchmarking data
  • Renegotiate the proposal if significant savings are attainable
  • Resolution of the proposal into a best in circumstance agreement

Price Benchmarking & Negotiation Research & Tools

1. Price Benchmarking & Negotiation Deck – Turn your next negotiation into an opportunity to optimize costs and reduce risks with Info-Tech’s Price Benchmarking & Negotiation service.

This service will provide IT leadership with expert advice and tools to help you achieve an independent and objective assessment of pricing offered by IT vendors; knowledge of what is possible for IT vendors in the marketplace; manage current and future costs; reduce operating expenses; and improve your price negotiation skills.



Price Benchmarking & Negotiation

EXECUTIVE BRIEF

Gain the upper hand with exclusive vendor negotiation intelligence.

Executive Brief

Price Benchmarking & Negotiation

Complex and inconsistent pricing across IT vendors, along with constant changes to licensing and delivery, make contract negotiations a painful process. Many organizations are ill equipped with tools, processes, and negotiation tactics to optimize their agreements, resulting in increased fees. Turn your next negotiation into an opportunity to optimize costs and reduce risks with Info-Tech’s Price Benchmarking & Negotiation Service. Info-Tech extracts intelligence from our robust knowledgebase of over 2,500 + IT vendor agreements, totaling more than $1 billion over the last three years.

This service will provide IT leadership with expert advice and tools to help you:

  • Achieve an independent and objective assessment of pricing offered by IT vendors.
  • Understand what is possible for IT vendors in the marketplace.
  • Manage current and future costs.
  • Reduce operating expenses.
  • Improve your price negotiation skills.

Use price benchmarking and negotiation intelligence to secure a market-competitive price on IT enterprise vendor contracts that have a value above $1 million. This service is included in the membership for all Info-Tech’s Counselor Members and is available to Leadership and Advisory Members for a success-based fee.

Analyst Perspective

Price Benchmarking & Negotiation

A picture of an Info-Tech analyst is shown.

“Vendor contract optimization derives the most value from your enterprise-level software, hardware, and IT service agreements and audits. It is the process of analyzing your IT investments to save money, maximize performance, and reduce risk. By analyzing your contracts, you will be able to identify significant cost savings and develop a customized approach that retains your desired scope at a market-competitive price through Info-Tech’s Price Benchmarking & Negotiation Service. If you’re paying for enterprise-level information technology, significant savings are hiding in plain sight. Take a second look at your enterprise technology investments with the experts at Info-Tech so that we can review your proposals to secure maximum value with minimal markup.”

Scott Mullan

Vice President, Vendor Contract & Cost Optimization

Info-Tech Research Group

This advisory service will apply to…

1

This service is designed for:

2

This service will help you:

3

This service will also help:

  • The CIO or CFO who needs to reduce costs and validate pricing in their enterprise IT agreements.
  • The CIO or business unit who needs a better understanding of the vendor’s pricing model and strategy.
  • The CIO and IT directors who need guided negotiation advice behind the scenes to optimize their agreements.
  • A vendor management office in the process of a contract renewal.
  • The category managers and sourcing or procurement staff who negotiate with or manage vendors.
  • Determine the competitive pricing range of your agreements.
  • Identify ways to maximize value to the benefit of your organization.
  • Generate or validate savings through the use of price benchmarking data and expert negotiation advice.
  • Evaluate and analyze your current agreement, identify areas of cost improvement, and negotiate for the future.
  • Ensure agreement is aligned to needs to optimize spend.
  • Save money in order to spend it on other critical projects.
  • Organizations who want to reduce the fees and risk in current and future contract terms.
  • IT leaders who want to leverage additional value and services from a vendor.
  • Vendor Management, Category Management, and Procurement & Sourcing.
  • Collaborating with your IT asset management/software asset management team(s).
  • Understanding negotiation tactics that can be used to better your deal.

Executive Summary

Your Challenge

Achieving an objective assessment of vendor pricing in your IT contracts. Limited knowledge on:

  • Current price benchmarking on the vendor
  • Pricing and negotiation intelligence
  • How to secure a market-competitive price
  • Vendor pricing tiers, models, and negotiation tactics
  • Vendor data points

Common Obstacles

Most organizations don’t have a full understanding of vendor pricing models, strategies, tactics, and motivations in contract negotiations. There could be:

  • Limited pricing intelligence
  • Lack of awareness of vendor tactics and motivations during contract negotiations
  • Lack of executive relationships between both organizations

Info-Tech’s Approach

Info-Tech has a three-phase approach to extract maximum value from your vendor:

  • Review proposal against current peer benchmarking data
  • Renegotiate the proposal if significant savings are attainable
  • Resolution of the proposal into a best-in-circumstance agreement

Info-Tech Insight

A detailed scope assessment factoring objective industry criteria and our relevant real-world experience allows us to identify inflated costs and help you start a constructive dialogue with vendors. We stay abreast of the industry’s ever-evolving complexities, helping you enter every negotiation with knowledge and confidence.

Your challenge

IT vendor contract pricing is complex and wildly inconsistent.

Organizations need to . . .

  • Reduce Pricing Complexity
  • With Peer Benchmarking Data

  • Realize Significant Savings
  • on High-Value Contracts

  • Receive an Objective Assessment of Vendor Pricing
  • With Comparable Market Analysis

  • Negotiate More Effectively
  • With Exclusive Negotiation Intelligence

  • Secure a Market-Competitive Price
  • Through Extensive Data Points on Vendors

When it comes to enterprise-scale IT projects, securing a fair and favorable deal is often challenging. Disparate prices and low transparency make cost optimization difficult, even under the best circumstances. Info-Tech’s Price Benchmarking & Negotiation Service is designed to help organizations who need to derive the most value possible from your enterprise-level software, hardware, and IT service agreements and audits.

Common obstacles

Finding pricing intelligence can be challenging.

Many organizations lack the full understanding of how a vendor works or operates their business.

Whether it’s for a new contract or a renewal, it’s difficult to track a vendor’s goals, objectives, and tactics during a negotiation. Pricing tiers and models change, products are updated, and new features are introduced. There may not be an established executive relationship between both organizations. Motivations during the negotiation period may not be clear. Companies have limited pricing intelligence for similar deals in their market space. These all contribute to the challenge of getting the best deal. Fortunately, Info-Tech offers price benchmarking & negotiation advice on the IT vendors that make up 80% of your spend.

Our experts handle the major IT vendors

By reviewing over $1B in contracts annually with over 2,000+ agreements in their knowledgebase in the last three years, Info- Tech can help you achieve the best-in-circumstance deal.

Info-Tech’s methodology to optimize your IT enterprise contracts

We analyze your contracts, identify significant cost savings, and develop a customized approach that retains your desired scope at a market-competitive price point. Our simple, three-step process includes:

1. Review

We review your vendor’s proposal terms in detail. We identify specific costs of inflation based upon comparable deals to determine if significant savings are possible.

2. Renegotiation

If significant savings are attainable, we develop a succinct and constructive approach to inform the vendor of intent to renegotiate.

3. Resolution

We work by your side as new price and terms come in, helping you reach a best-in-circumstance agreement in a timely manner.

Step 1 Review

An objective examination of your vendors’ proposal terms in detail.

Book your call with your Executive Advisor and send in your pricing proposal with 48 hours’ notice in advance of the call.

During this phase, your analyst will:

  • Review the client’s vendor proposal by line item against our 2,000+ agreement knowledgebase.
  • Provide a detailed scope assessment, factoring objective industry criteria and relevant real-world experience.
  • Set discount ranges based on similar size and complexity in your market space.
  • Review vendor’s earning report.

Send in Your Pricing Proposal

Vendor Insights Call

Ongoing Negotiation Assistance

Optimize costs and reduce the risks associated with high-value, long-term IT commitments.

Step 2 Renegotiation

Creating more value in the process.

After the review of the initial proposal, our analysts will establish a negotiation strategy based upon vendor tactics.

Your analyst will:

  • Provide ongoing negotiation support.
  • Further establish counteroffer communications and strategy during the renegotiation phase.
  • Review vendor responses, communications, and counteroffers.
  • Provide advice and guidance on inquiries and communications to vendor.
  • Draft responses to vendor.
  • Increase leverage based upon vendor interactions, counteroffers, and discounting.

By working behind the scenes, we never communicate to the vendor directly and maintain the highest level of confidentiality during and after negotiations take place. We are available as a partner and resource at any time, leaving you in full control of your partnerships and outcomes.

Step 3 Resolution

Get the best-in-circumstance deal.

During this final phase, our client and vendor agree to commercial price and terms with final sign-off.

Activities include the following:

  • Complete a final review of line items, discounting, and concessions in order to reduce operating expenses.
  • Perform a business review of the Terms & Conditions to identify and avoid provisions that make it hard for you to hold the vendor accountable.
  • Understand how and where your contracts allocate and manage risk between you and the vendor.
  • Leverage your technology agreement to its fullest potential by managing current and future costs.

Confirm the savings and improved business terms to measure the value that Info-Tech delivers through our Measured Value Survey.

Insights

Optimize costs and reduce the risks associated with high-value, long-term IT commitments.

Insight 1: Savings are hiding in plain sight on your agreement. Do not blindly assume that the price is the final price and the vendor is not willing to negotiate.

Insight 2: Gain the upper hand with exclusive negotiation intelligence on more than 40+ vendors.

Insight 3: Expert negotiation support is available until the contract is signed. We work with you behind the scenes during the negotiation process.

Insight 4: Understanding your vendor’s pricing model and strategy will give you valuable insight during negotiations.

Insight 5: Secure a competitive price with peer benchmarking. With over $1B worth of contracts reviewed annually, be assured that we have the latest in pricing intelligence.

“Price is what you pay; value is what you get.”

– Warren Buffet

Let us save you money on your next IT vendor contract

Add to the tally of $100M+ we’ve saved clients already.

How it works, and what you get

An achievable target price for your negotiation, backed by real benchmarking data.

Analysis of vendor communications and recommended next steps.

A step-by-step negotiation strategy to maximize your negotiation intelligence.

Ongoing advisory assistance throughout the procurement process.

Info-Tech offers various levels of support to best suit your needs

This service is available on all contracts over $1M to the following members:

All Counselor Members*

*subject to annual contract value thresholds

All Leadership and Advisory Members*

*subject to a 15% success-based fee on realized savings

Use Info-Tech benchmarking data and our extensive contract negotiation experience to reduce risks and save significantly on the following vendors.

Adobe

Oracle PeopleSoft

AWS

Oracle Siebel

Cisco

Oracle Sun

CrowdStrike

RSA

Cylance

Salesforce

Dell EMC

Salesforce Demandware

Google Cloud

Salesforce MuleSoft

IBM

Salesforce Slack

IBM Red Hat

Salesforce Tableau

Infor

SAP

McAfee

SAP Ariba

Microsoft

SAP Business Objects

Microsoft Azure

SAP Callidus Cloud

Microsoft Dynamics

SAP Concur

Microsoft LinkedIn

SAP SuccessFactors

Oracle

SAP Sybase

Oracle BEA Systems

ServiceNow

Oracle Golden Gate

Snowflake

Oracle Hyperion

Symantec

Oracle Micros

UKG (Ultimate/Kronos)

Oracle NetSuite

VMware

VMware Carbon Black

Workday

Advisory service process

Let us save you money on your next IT vendor contracts.

Send In Your Pricing Proposal: 48 Hours’ Notice in Advance of Call

Vendor Insights Call: Target Price Benchmarks, Negotiation Strategy

Ongoing Negotiation Assistance: Analysis of Vendor Interactions, Guidance on Responses to Vendors

Info-Tech Insight:

If you’re paying for enterprise-level IT, significant savings are hiding in plain sight.

Measure the value of this advisory service

Add to the tally of $100M+ we’ve saved clients already.

1

Dollars Saved

2

Time Saved

3

Knowledge Gained

  • Optimized savings in vendor agreement
  • User profiling
  • Eliminate list price increases in current and future terms
  • Optimized procurement
  • Time spent with vendors
  • Tactics to negotiate better value
  • Reduced time during negotiations
  • Understanding the pricing structure and cost models of the vendor
  • Tactics on dealing with a vendor during contract negotiations
  • Understanding the vendor agreement

Guided Implementation (GI)

What does a typical GI on this topic look like?

Phase 1

Phase 2

Phase 3

Phase 4

Call #1: Scope requirements, objectives, and your specific challenges with the vendor.

Call #2: Evaluate the Member’s current proposal with price benchmarking intel.

Call #3: Further evaluate the renegotiated proposal. Further negotiation tactics and strategies are explored.

Calls #4-5: Identify areas of improvement within the proposed agreement.

Call #6:Complete final review of agreement; contract with vendor is signed.

A Guided Implementation (GI) is series of calls with an Info-Tech analyst to help guide you through the negotiation process with the vendor. A typical GI is between 4 to 6 calls and emails over the course of 1 week to 3 months.

About Info-Tech

Info-Tech Research Group is the world’s fastest-growing information technology research and advisory company, proudly serving over 30,000 IT professionals.

We produce unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. We partner closely with IT teams to provide everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.

What Is a Blueprint?

A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your IT problems.

Each blueprint can be accompanied by a Guided Implementation that provides you access to our world-class analysts to help you get through the project.

Need Extra Help?
Try Our Guided Implementations

Get the help you need in this 1-phase advisory process. You'll receive 5 touchpoints with our researchers, all included in your membership.

  • Call #1 - Scope requirements, objectives, and your specific challenges with the vendor.
  • Call #2 - Evaluate the Member’s current proposal with price benchmarking intel.
  • Call #3 - Further evaluate the renegotiated proposal. Further negotiation tactics and strategies are explored.
  • Call #4 - Identify areas of improvement within the proposed agreement.
  • Call #5 - Complete final review of agreement; contract with vendor is signed.

Author(s)

Gordana Vuceta

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