One of the most complicated aspects of negotiating a software licensing contract is when an organization has no precedent to follow. Perhaps they are purchasing volume licensing for the first time, or working with a new vendor, but when there is nothing to go by, the process is all that more complicated. To add to this, vendors have non-disclosure agreements, preventing customers from discussing pricing with others. Therefore, you won’t find out about pricing until you are actually seated at the table with the vendor – on the hot seat. Pricing benchmarks are important to the negotiation process, to make sure you are getting the best deal. In addition to price, if this is a first of any kind, you want to know that you are buying something that will fit your company today and 2 years from now.
Get help. Consultants negotiate contracts every day, they know what the vendor has to offer, what the discounts should be, how to work a contract to accommodate your company’s growth … I can keep going here! It’s not shameful to ask for help – it will save you money in the long run.