Salesforce Engagement Success Story: Safeguarding and Optimizing Healthcare Organization's Salesforce License Utilization
When a healthcare organization discovered that Salesforce was conducting an audit of their license utilization, they sought the expertise of The Negotiator Guru (TNG). The organization's C-suite specifically requested the involvement of Dan Kelly, TNG's Founder and Senior Partner. With Mr. Kelly leading the engagement, supported by our global team, we successfully addressed the immediate audit risk and achieved the client's objectives of reducing costs. Through our efforts, the engagement delivered an impressive $3.3 million in cost savings and $8.6 million in cost avoidance for the client.
Our Approach
To ensure a successful engagement, we applied our proven 4-step IT Software Negotiation Process, tailored to the unique challenges faced by healthcare organizations:
Step 1) Discovery
We rapidly assembled a core team within the client's organization to act as a triage and steering team. Their primary focus was to uncover the facts surrounding any potential license abuse. We conducted a thorough assessment of the client's growth into and out of the Salesforce platform over the past five years. This analysis provided crucial insights into the organization's license utilization.
Step 2) Strategy
We coordinated and executed multiple workstreams aimed at identifying the client's future utilization of Salesforce over the next 3-5 years. Leveraging our Right Size/Right Price methodology, we quickly identified opportunities to optimize the license footprint and align it with the organization's evolving needs.
Step 3) Negotiate
At the client's request, we engaged directly with Salesforce to mitigate the audit risk and optimize the Salesforce environment. Leveraging our extensive experience and daily interactions with Salesforce, we swiftly negotiated a resolution to the audit risk while simultaneously renegotiating the client's contract. This approach not only safeguarded the organization but also delivered significant cost savings.
Step 4) Contract Execution
Working closely with the client's Legal Team, we provided guidance to mitigate contractual risks while enhancing flexibility. By advising on contractual matters and expanding the client's options, we ensured a mutually beneficial and stronger supplier relationship.
The Remarkable Results
Our engagement delivered exceptional results for the healthcare organization. They achieved substantial cost savings of $3.3 million and cost avoidance of $8.6 million. We successfully navigated a significant audit, mitigating both the commercial and contractual implications. Moreover, we right-sized and right-priced the client's contract, delivering immediate positive impact to their profit and loss statement while simultaneously enhancing their overall relationship with Salesforce.
At The Negotiator Guru, we are dedicated to safeguarding and optimizing our clients' software investments. This success story exemplifies our ability to efficiently address audit risks, achieve significant cost savings, and foster strong supplier relationships. Contact us today to leverage our expertise and drive favorable outcomes for your Salesforce engagements in the healthcare industry.
See More Case Studies
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Contract Consolidation Post-Merger
Client Profile
A national healthcare provider with 10+ facilities undergoing post-merger integration of systems and vendor contracts.
Challenge
Multiple overlapping software and infrastructure contracts (some with auto-renewal clauses and duplicative pricing) created an estimated $5M in redundant spend and significant compliance risk across entities.
TNG Solution
- Conducted a full post-merger contract risk assessment.
- Identified conflicting licensing terms and misaligned SLAs across vendors.
- Renegotiated bundled agreements, centralized governance rights, and aligned pricing to true usage.
Outcome
Eliminated $5.3M in redundant costs and created a centralized contract framework that mitigated legal exposure while ensuring scalability for future growth.
SaaS Contract Optimization
Client Profile
A Fortune 100 big-box retailer implementing a multi-year rollout of a cloud-based workforce management platform across 1,200 locations.
Challenge
Vendor’s original SaaS contract included non-negotiable annual price escalators, unscalable support fees, and unrestricted termination clauses, leading to a potential $14M overcommitment.
TNG Solution
- Conducted a clause-by-clause risk audit.
- Introduced performance-based renewal language, capped escalators, and tiered user thresholds.
Outcome
Negotiated total contract value down by $6.8M, implemented enforceable performance guarantees, and secured rights to re-negotiate upon key business changes.
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SAP Indirect Access & Audit Exposure
Client Profile
A publicly traded global logistics company with over 30,000 employees and a complex SAP landscape.
Challenge
SAP alleged the client owed $9.6M in retroactive fees due to indirect access violations following an internal audit. The client had signed an outdated license agreement that left them fully exposed.
TNG Solution
- Performed a forensic risk analysis of the original SAP contract and audit report.
- Identified outdated metrics, ambiguous user definitions, and license overlap.
- Negotiated a new licensing model that eliminated indirect access exposure and established a future-proof digital access clause.
Outcome
Reduced SAP’s claim from $9.6M to $0 and negotiated a forward licensing strategy that saved the client $7.2M over five years.
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