Salesforce Engagement Success Story: Empowering a Mid-Cap Technology Company with Cost Optimization and Strategic Savings
The Negotiator Guru recently partnered with a dynamic mid-cap technology company to facilitate their Salesforce contract renewal negotiations. The client's objective was twofold: to benchmark their rates against industry peers and uncover opportunities for cost optimization. Through our strategic approach, we delivered outstanding results, achieving remarkable cost savings of $1.5 million and cost avoidance of $3.2 million.
Our Approach
To ensure a successful engagement, we leveraged our proven 4-step IT Software Negotiation Process, tailored specifically to address the unique requirements of mid-cap technology companies:
Step 1) Discovery
Working closely with the Chief Information Officer (CIO), we delved into the client's historical utilization of Salesforce over the years. By understanding their specific use cases and pain points, we gained valuable insights that informed our negotiation strategy.
Step 2) Strategy
Collaborating with a select group of key stakeholders within the client's organization, we conducted a thorough assessment of how the Salesforce platform would be utilized in the next 3 to 5 years. This exercise resulted in the creation of a comprehensive 5-year license-based roadmap, serving as the foundation for our negotiation plan.
Step 3) Negotiate
As a trusted advisor, we provided silent guidance to the CIO, who maintained a direct connection with Salesforce. This particular negotiation required extensive effort to achieve the most successful outcome. Leveraging our expertise and negotiation skills, we advocated for the client's interests and worked diligently to secure favorable terms and rates.
Step 4) Contract Execution
Collaborating with the client's Legal department, we meticulously analyzed the contract to identify and mitigate potential risks and open-ended obligations. By ensuring a solid and favorable agreement, we provided the client with enhanced contractual protection.
The Remarkable Results
Our engagement delivered exceptional results for the client. They achieved substantial cost savings of $1.5 million and cost avoidance of $3.2 million.
Additionally, we helped the client eliminate shelf ware and underutilized assets, optimizing their Salesforce deployment. Through lower rates and improved billing terms, we created a positive cash flow that allowed the client to reinvest in other strategic initiatives, fueling their growth.
At The Negotiator Guru, we pride ourselves on delivering impactful cost optimization and strategic savings for technology companies. This success story exemplifies our ability to navigate complex negotiations, secure favorable terms, and unlock substantial value for our clients. Contact us today to leverage our expertise and drive optimal Salesforce contract renewals for your organization.
See More Case Studies
From Phoenix to Tokyo, we turn impossible vendor demands into client victories.
IT Software Case Study
Client Name/Size/Sector:
- Company Name Confidential
- $15+ Billion Annual Revenue
- 5K+ Employees
- Financial Services
Supplier:
- Salesforce
Engagement Type:
- Client engaged “The Negotiator Guru” (firm) to deliver IT Strategic Sourcing Advisory Services to a specific business unit.
Problem:
- While the client had a centralized procurement department (good thing), there was very little support from the IT department. In other words, the IT department operated independently and did not trust the client’s procurement department.
- The client did not have a centralized spend visibility tool
- Note: The client had SAP as their primary ERP system but was not able to accurately identify spend across regions as a result of poor reporting from the tool.
- The client’s IT spend is broken between global and regional budgets depending on the application.
Activities:
- Identified current state contracts across the globe
- Identified both influencing and decision-making stakeholders within IT and the Business Units that utilized similar software packages.
- Coordinated global business units and stakeholder meetings to discuss opportunity, gather feedback, and drive results.
- Utilized proprietary tools, templates, and techniques to assign global roles & responsibilities, action items, and negotiation tactics in the interest of speaking from one voice.
Results:
- Client Savings: $13 Million
- Negotiated the agreement down from $25 Million to $12 Million for a 3-year contract.
- Even though the firm was retained to focus only on a specific business unit, we identified cost savings opportunities that benefited multiple business units across the organization.
Microsoft Case Study: Fortune 50 Company
Microsoft Engagement Overview:
Fortune 50 Company
One of our Fortune 50 clients engaged use to advise on a high-stakes negotiation with Microsoft. The client had a large contract with Microsoft which we were able to both 1) negotiate a large technology uplift while also 2) produce a $5 million in net savings.
Key Activities
We utilized our 4-step IT Software Negotiation Process to successfully engage with the client:
- Identified current state contracts and client-based obligations
- Developed a risk profile of current state contract language against enterprise project plan timelines and dependencies
- Utilized our proprietary decision-matrix framework to drive C-Level decision making
- Advised client on key dependencies to consider throughout the project
- Directly provided hands-on support/representation throughout the entire negotiation and contracting process
The Results
(not comprehensive)
- $5 Million cost savings and $10.7 Million cost avoidance over contract term
- Significant technology uplift providing access to the most advanced digital capabilities
- Uniquely engaged and supported the company’s cybercrime resilience strategy
- Enabled Device Modern Management allowing for additional endpoint security
- Negotiated a client specific license structure enabling the client to be highly flexible of their utilization of the platform
.avif)
$53M in IT Savings for a biopharmaceutical company
One of our recent clients was a biopharmaceutical company with $5B+ in annual revenue. The client had a large software contract with one of the industry leading providers. The original agreement was charged on a “case volume” basis which was leading to rapid growth in costs beyond our client's budget.
We helped the client renegotiate the agreement with their software vendor by:
- Changing the cost lever from which the client was billed from “case volume” to “seat-based licenses”
- Setting rates on a “should cost” basis due to The Negotiator Guru’s extensive experience in the IT Sourcing industry
- We decided that 35% was an acceptable margin for a software provider to be charging the client. Previously, the software vendor had been charging a 200% margin.
- Handling the entire renegotiation process
The end result:
$52.3M+ in savings over 5 years
Start with a CIA.
That’s a Client Intake Assessment.
Upload your contract data or schedule a discovery call. If we can’t identify at least a 10%+ from a TNG Right Pricing™ opportunity, we won’t take your money (but we will offer you some free advice!)
