Date post: | 19-Aug-2015 |
Category: |
Software |
Upload: | forrester-research |
View: | 5,173 times |
Download: | 2 times |
How To Get The Best Deal On Your
Microsoft And Oracle Negotiations
Mark Bartrick, Senior Analyst
Joe Galuszka, VP & Principal Consultant
April 22, 2014
Joe Galuszka Mark Bartrick
We have been advising companies on how to
negotiate with Microsoft, Oracle & SAP for over 20
years.
© 2014 Forrester Research, Inc. Reproduction Prohibited 3
Agenda
› Microsoft Negotiations - Office 365 and alternatives
› Oracle Negotiations - ULAs and growth challenges
› How Forrester can help your negotiating team.
© 2013 Forrester Research, Inc. Reproduction Prohibited 5
Microsoft’s desire for monopoly drives its strategy
Persuade customers to
standardize on its stack
Lock you in for three years
Eliminate competitors
Renew existing revenue stream and add 10%
Grow the business,
revenue and profit
Defend Office business from
© 2014 Forrester Research, Inc. Reproduction Prohibited 6
Multi-year programs (ie. EA and Cloud) represent a growing share of Microsoft’s total revenue
© 2014 Forrester Research, Inc. Reproduction Prohibited 7
Microsoft’s challenges
› Microsoft needs to keep new revenues
flowing in.
› Its main products are fully mature.
- How can it keep persuading customers to purchase
a new version of Office every three or four years?
› Many customers skip product releases.
- SA’s price assumes triennial upgrades.
© 2014 Forrester Research, Inc. Reproduction Prohibited 8
Microsoft claims that SA includes 26 “benefits”
Source: Microsoft
© 2014 Forrester Research, Inc. Reproduction Prohibited 9
Microsoft will push you to Office 365
Source: July 12, 2012, “How To Negotiate A Better Microsoft Office 365 Deal” Forrester report
© 2014 Forrester Research, Inc. Reproduction Prohibited 10
Moving to the Cloud means Office 365 isn’t the only game in town….
© 2014 Forrester Research, Inc. Reproduction Prohibited 11
Collaboration and productivity suites alternate vendors
April 2013 “Answer Five Questions When Selecting A Cloud Collaboration And Productivity Suite”
© 2014 Forrester Research, Inc. Reproduction Prohibited 12
Collaboration and productivity suites alternate vendors
April 2013 “Answer Five Questions When Selecting A Cloud Collaboration And Productivity Suite”
© 2014 Forrester Research, Inc. Reproduction Prohibited 15
Oracle wants you to buy all its stack
› You can get negotiation leverage from the products you might buy,
as well as those you already own or will definitely buy.
© 2014 Forrester Research, Inc. Reproduction Prohibited 16
Oracle’s ULA’s accelerate its short-term revenue growth, at the expense of subsequent years
Note. This graph exaggerates the effect to illustrate the point and are not meant to reflect the actual numbers
1. Customer A buys a ULA in 2010, so buys nothing in 2011 or 2012
2. Customers B and C buy ULAs in 2011, so buy nothing in 2012
3. Oracle needs to sell 3 similar ULAs in 2012 to replace this revenue and show growth too
© 2014 Forrester Research, Inc. Reproduction Prohibited 17
Oracle’s profits come from support WHILE SALES AND MARKETING IS THE LARGEST EXPENSE CATEGORY
© 2014 Forrester Research, Inc. Reproduction Prohibited 18
Oracle’s maintenance revenue growth is stalling
Oracle’s maintenance
renewal rate appears to have
fallen in the last three years.
© 2014 Forrester Research, Inc. Reproduction Prohibited 20
Forrester has Helped Thousands of Companies Negotiate Better Deals with Microsoft, Oracle and SAP
© 2014 Forrester Research, Inc. Reproduction Prohibited 21
Forrester uses research-based knowledge to help you get a better deal
› Structured Best Practice Process
› Decision Support
› Vendors’ Policies
› Latest Deals
› Strategic Insights
Microsoft Volume Licensing
Product Use Rights
Worldwide English | October 2012
© 2014 Forrester Research, Inc. Reproduction Prohibited 22
The Forrester Consulting difference
Primary research
Vendor interactions
Proprietary global data
Client engagements
Research-based consulting delivered with speed, depth, and objectivity.
Forrester’s intellectual capital is leveraged
for every consulting engagement.
© 2014 Forrester Research, Inc. Reproduction Prohibited 23
Next Steps
1. If you’re negotiating with these vendors in the next few months,
check out some of our research on the topic including:
- “HOW TO NEGOTIATE A BETTER MICROSOFT 365 DEAL”
- “A QUICK GUIDE TO HELP YOU PREPARE FOR AN ORACLE SOFTWARE
NEGOTIATION”
2. Contact your Forrester Account Manager to leverage Forrester’s
team of negotiation advisers to ensure you get the best deals
from Microsoft and Oracle (and SAP).
Thank you Mark Bartrick
Software Contract Negotiation
Joe Galuszka
Software Contract Negotiation