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Slash Spending by Optimizing Your Software Maintenance and Support

Responsibly and effectively reduce software support spend.

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Contributors

  • Mike Kozlowski, VP Applications, Old Republic Title
  • Jomar McDonald, Associate VP of Technology, Adler University
  • 8 anonymous company contributors

Your Challenge

  • Perpetual software maintenance (SW M&S) is an annual budget cost that increases almost yearly. You don’t really know if there is value in it, if its required by the vendor, or if there are opportunities for cost savings.
  • Most organizations never reap the full benefits of software M&S. They blindly send renewal fees to the vendor every year without validating their needs or the value of the maintenance. In addition, your vendor maintenance may be under contract and you aren’t sure what the obligations are for both parties.

Our Advice

Critical Insight

  • Analyzing the benefits contained within a vendor’s software M&S will provide the actual cost value of the M&S and whether there are critical support requirements vs. “nice to have” benefits.
  • Understanding the value and your requirement for M&S will allow you to make an informed decision on how best to optimize and reduce your annual software M&S spend.
  • Use a holistic approach when looking to reduce your software M&S spend. Review the entire portfolio for targeted reduction that will result in short- and long-term savings.
  • When targeting vendors to negotiate M&S price or coverage reduction, engaging them three to six months in advance of renewal will provide you with more time to effectively negotiate and not fall to the pressure of time.

Impact and Result

  • Reduce annual costs for software maintenance and support.
  • Complete a value of investment (VOI) analysis of your software M&S for strategic vendors.
  • Maximize value of the software M&S by using all the benefits being paid for.
  • Right-size support coverage for your requirements.
  • Prioritize software vendors to target for cost reduction and optimization.

Research & Tools

Guided Implementations

This guided implementation is a six call advisory process.

Guided Implementation #1 - Evaluate

Call #1 - Scope requirements, objectives, and your specific challenges.

Guided Implementation #2 - Establish

Call #1 - Assess your existing M&S coverage.
Call #2 - Review your obligations and options – value of M&S discussion.
Call #3 - Classify your software vendors.

Guided Implementation #3 - Optimize

Call #1 - Value of your M&S investment – cancellation and third parties.
Call #2 - Create a strategy and plan to reduce and optimize M&S.

Search Code: 95303
Published: November 19, 2020
Last Revised: November 19, 2020

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