Negotiating With the Software Megavendors: SAP, Oracle, Microsoft and IBM

Overview

In most software markets, buyers that make the initial bid competitive will find themselves with significant negotiation leverage and the power to create flexible deals. However, after implementation, the combination of high switching costs and, therefore, low-to-no market competition will shift a significant degree of power and leverage back to the vendor. This has enabled many software vendors to enjoy premium prices and high margins. Unlike other markets, in which loyal, profitable customers are usually rewarded via some kind of loyalty or CRM program, customers of more-mature software products and vendors often feel that they're treated worse than new customers/prospects, and they struggle to find any leverage in deals. This makes dealing with strategic suppliers who are often very entrenched in your environment, particularly challenging.

It is critical to clearly understand where you do have leverage and to negotiate the best terms and conditions possible to protect against unexpected costs.

Agenda:

08.00 – 10.00 Negotiating With the Software Megavendors: SAP, Oracle, Microsoft and IBM
Gurig Sedha

Key Issues:

1. What are key trends influencing software licensing and pricing?
2. What are my key areas of leverage with IBM, Microsoft, Oracle and SAP?
3. What are the key terms and conditions to negotiate with IBM, Microsoft, Oracle and SAP?

Guriq Sedha , Gartner Research Director

Guriq Sedha provides advice on IT procurement, strategic sourcing, asset management, vendor management and contract negotiations, as well as general procurement advice.

Before joining Gartner, Mr. Sedha worked for American Express as head of procurement for ASEAN and as regional commodity manager for outsourcing. Previously, he was head of supply chain technology for Vodafone Australia for more than four years. Mr. Sedha's prior experience includes Fujitsu Australia as a vendor alliance manager and a team leader in the national repair center. He also previously worked as customer service engineer and customer service manager for HCL Hewlett-Packard.

I enjoy helping clients find resolution to their procurement-related challenges through proactive interactions. I work creatively to understand the stakeholder's perspective and to deliver strategic sourcing deals that meet organizational goals. I truly believe in building and nurturing win-win vendor relationships for the strategic advantage of the client organizations while managing cost/risk and creating leverage for revenue opportunities.

Years of Experience

• 2 years in total with Gartner
• 12 years in IT Industry
• 7 years in Telecommunications Industry
• 8 years in Business or Consumer Services Industry
• 11 years in IT Service Providers Industry

Professional Background

• American Express International, Manager GRE and Procurement Services (ASEAN), 4 years
• American Express International, Regional Manager Outsourcing (JAPA), 2 years
• Vodafone Australia, Head of Supply Chain Technology, 5 years

Education

• Master of Business and Technology from University of New South Wales (UNSW), Sydney, Australia

Languages

• Indian - Hindi
• Indian - Punjabi