Discover how ISG’s enterprise agreement software negotiation for a leading health, consumer goods and life sciences company resulted in an $65.1 million (36 percent) proposal cost reduction over three years.
While the opportunity to create new efficiencies through the use of Office 365 had captured management attention, the fixed user costs were extremely challenging and exceeded any current-year budget forecasts. It was also outside the company’s ability to achieve a realistic time-to-value outcome based on the proposed spend.
Imagining IT Differently
Future Made Possible
- The company reduced spending by $65.1 million between the initial proposals and the version which closed. The final version contained higher level service offerings than were included in the opening proposals.
- It also received a strategic multi-year agreement that provided additional price protection going into a future 2021 renewal in order to accomplish a complete 5-year plan.
- It completed the transaction based upon budgets that did not account for the transformation expense of going to the Office 365 security services.
- It retained a portion of its ecosystem which was not compatible with the Office 365 services on-premise.