Negotiating with vendors can be a crucial step in optimizing your company’s software usage. Surprisingly, industry data suggests that many companies are not utilizing up to 40% of the software they are paying for in their licensed portfolio. By negotiating with vendors and ensuring that you are only paying for what you need and use, you can potentially save your company a significant amount of money.
When it comes to negotiating with vendors, it can be overwhelming to know where to start. That’s where our team of experts comes in. We offer vendor negotiation services to help you get the best possible deals. Here are the ways we work with you to ensure costs are aligned to actual usage to avoid unnecessary fees.
Software Asset Management/Audit Defense Services (SAM)
Software Asset Management (SAM) is crucial for businesses to ensure they are compliant with software licensing agreements and avoid costly penalties. SCS offers expert SAM services, including proactive monitoring and support from former vendor auditors. With our help, businesses can significantly reduce violations and fees owed, while maintaining compliance and peace of mind.
Negotiation Support and Benchmarking Services (Software only)
With regard to negotiation support, SCS goes above and beyond to ensure that our clients are fully prepared. We work closely with technical teams to gather all necessary data and run reports to provide a thorough analysis. In one recent case, we discovered that our client was millions of dollars out of compliance. Rather than simply sharing this information with SAP, we helped the client optimize their environment to bring them back into compliance. Thanks to our efforts, the client was able to avoid over $20M in compliance violations.
Real Scenarios where SCS Stepped in to Provide Support
Java Audit Defense and Negotiation Support
A Fortune 500 healthcare client recently discover that Oracle had developed a compliance fee based on deployment reports provided by the client. However, upon conducting our own assessment, we found that Oracle had not accurately accounted for certain items, such as bundling. Through audit and negotiation support efforts, we helped reduced the compliance violation by a total of 65%.
SAP Audit Defense
SCS collaborated with a leading Fortune 500 manufacturer to conduct an analysis to develop an ELP. The findings revealed that the client was non-compliant by millions of dollars. SCS assisted the client in optimizing their environment before sharing the reports with SAP. As a result, the client was able to save over $20M in compliance violations with the help of SCS.
IBM Sub-Cap Internal Audit
An audit conducted by SCS for a Fortune 500 insurer in the US revealed that the customer was only utilizing 58% of the software they had purchased in their previous agreement with IBM. SCS assisted in developing an ELP (Effective License Position) for the customer, which helped them to rightsize their environment and reduce costs by $9M per year. This was done prior to the renewal of the customer’s IBM agreement.
Let SCS Help!
At SCS, we pride ourselves on our vendor independence and dedication to helping clients optimize their IT costs. Our team is comprised of top-notch professionals who are committed to maintaining our high standards of integrity and excellence. Whether it’s negotiating software, telecom, professional services, or hardware contracts, we work tirelessly to ensure our clients get the best possible deals. Schedule a FREE consultation with SCS, today!