10 methods of a victory over SAP at a negotiating table

For clients of SAP and global sellers turning point as operation of agreements and service contracts of the software comes to the end came, and still it is necessary to purchase new. Until the end of financial year, in the fourth quarter, it is necessary to carry out armoring of products.

But, according to SAP, it at all not time for opposition. The representative of SAP Andy Kendzie said that the purpose of the company in creation of long and mutually advantageous partnership with the long-term importance for clients. "We are convinced that they understand it when consider prolongation of the contract", - Kendzie told.

Analysts consider that clients have a few chances - to receive at SAP a discount on some aspects, especially regarding an annual subscription fee. Nevertheless, there are several recommendations, following which they can take a number of actions to find confidence that carry out the most profitable transaction, both in short-term, and in the long-term.

1. Sort out whether you receive return from the existing investments into SAP

According to CEO Constellation Research Ray Wang, being in process of negotiations, the best that can be made – to find out that is really used in the company. I.e. software licenses are used fully or the company needs bigger. It is possible to refuse a number of licenses though it is more profitable to build in this opportunity in the initial agreement. Transfer of unused licenses for other applications providing actual value for business can become the second option.

2. Force sellers to work their money

The jammed template on sales of the corporate software - the seller tempting clients and making a big deal. Afterwards it disappears before the following emergence when tries to sell the companies something else. The analyst of Forrester Research Duncan Jones considers that it is unacceptable. Aspects of product introduction need to be done by a part of the agreement.

3. To receive a discount, it is better to buy at once much

The software maker of CAD and the user of SAP Bentley Systems company does not conduct negotiations with the supplier now, but there found out that the company always concluded the best bargains, having prepared purchase of several products and conducting tough negotiations up to the last minute. Tim Birnley, the director of corporate applications told about it. According to him, most likely, that the agreement in November will be better, than in December as SAP will be sure that the transaction will take place this year.

4. Do not expect much if you buy only a part

Software for sale and marketing – the most expensive SAP products. If the company purchases SAP products separately, then SAP will allow a discount according to the size of each transaction, but not total volume. Finally it is probably necessary to pay the double price for the software in comparison with acquisition of the corporate software, but perhaps it will be the price which should be paid for more wide choice and flexibility.

5. You hold the level of isolation of contracts

One of the tough tasks facing IT departments and procurement experts - tracking of constantly growing volume of program agreements, and suppliers often offer that it seems a painless method to simplify this process. In opinion Vanga, it is necessary to avoid temptation to integrate several contracts. "Perhaps, it also sounds better, but reduces flexibility. Yes, you receive one account, but limit yourself", - the analyst emphasizes.

It is necessary to answer many questions, first of all to himself

6. It is necessary to remember software landscape

Successful negotiations with SAP consist not in only in receiving the best discount from the seller. The new transaction should provide terms of the contract which stipulate complete lifecycle of the application from purchase before implementation and its subsequent replacement, considers Vang. They also should provide scenarios "that if". "What will occur if there is a merge? What can be changed? - he notes. - It is that once it is useful".

7. You speak about leaving from vendor, only if you are configured seriously

Sometimes, in communication with sellers of SAP clients threaten to leave to other supplier, but such tactics works only if they do not bluff. By words Vanga, "to complete the agreement, you should be ready to leave". The first rule, according to the analyst: not sever relations with the supplier if you consider that he is going to keep the promises.

8. Pay to become the first implementer

Last year SAP released a set of new products, and sales representatives of the company try to sell their maximum quantity. Clients should save themselves from this pressure as even the good discounts for a new product offered by the seller will not brighten up big annual payments for service eventually.

Nevertheless, "if you have money for purchase of new software, it makes sense to become the beta user because there will be an opportunity to create a product, despite the risks connected with its use", - considers Vang. SAP will want to show success of the first clients of new products and will help them with service. Beta users can also receive advantageous conditions of pricing, the analyst told.

9. Communicate with SAP "heart-to-heart"

The strong relations with SAP should go beyond annual negotiations on the contract. For clients would be reasonable to create "the strategic line" of a meeting between the heads and their colleagues in SAP, Jones considers. "It not only will help to clear opinion of concerned parties on SAP, but also will improve opinion of SAP on the company as the potential assistant, but not just the rival at negotiations", - he emphasized.

10. Prepare for the next year

According to Jones, for clients it is important to understand real importance of SAP for business in general. It gave an example of the company which used SAP as the main set of applications of a back office, but almost did not use it software for work of remote offices. "Existence of a clear understanding of a role of SAP in the enterprise allows the sales department to define the corresponding strategy of negotiations in the future", - he told.