In this webinar, IT contract specialist Phil Downe of Relations Management Group explains how to do cloud-based software negotiations with confidence. The webinar answers the following questions: How can you avoid vendor captivity and software traps? How can you prepare for a negotiation, including leveraging and timing the deal? How can you draft a contract and prevent contract ambiguity?

1. Negotiating Software
Deals in the Cloud
Creating Value Where it’s Needed Most
www.ITnegotiations.com

2. Every Vendor’s Strategic Direction is
Cloud:
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3. Where are the Risks?
• Opaque / Bundled Pricing
• Over-buying Shelfware
• Eroding Discounts Over Time
• Agreement Traps and Pitfalls
• Growth, True-ups & Renewals
• Unfamiliar Territory Disadvantage
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4. Zone
of
Consideration
Vendor
Presentations
Vendor
Selection
L
E
V
E
R
A
G
E
TIME
IT Vendor
Non-Profit
0%
100%
Leverage:
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RFP
Launch
RFP
Response
Legal
Drafting
IT Vendor
Non-Profit

5. Price-Points & Issues to be Negotiated:
• Pricing
• Future Price Protection
• Systems Implementation Charges
• Term of the Agreement
• Ancillary Charges (Storage & Transactions)
• The Legal Terms (SLAs & SOWs)
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6. Pricing:
Subscription A Pricing:
List Price
($)
Discount
(%)
Net Price
($)
Volume Clip Levels: (Adjust as needed)
50 to 100 $250.00 50% $125.00
101 to 200 $250.00 60% $100.00
201 to 300 $250.00 75% $62.50
etc. (add lines as needed)
Subscription B Pricing:
Volume Clip Levels: (Adjust as needed)
500 to 1000 $100.00 50% $50.00
1001 to 2000 $100.00 60% $40.00
2001 to 3000 $100.00 75% $25.00
etc. (add lines as needed)
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7. True-Up Changes: What to Count:
Previous Terms: New Terms:
Enrolled Affiliate must submit an
annual true-up order that accounts
for changes since the initial order or
last true-up order, including (i) any
increase in licenses, including any
increase in Qualified Devices or
Qualified Users and Reserved
Licenses; (ii) Transitions (if
permitted); or (iii) Subscription
License quantity reductions (if
permitted).
Enrolled Affiliate must submit an
annual true-up order that accounts
for any changes since the initial
order or last order. Including:
Enterprise Products…
Additional Products…
Online Services…
Transitions…
Subscription License quantity
reductions…
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8. Q & A ?
www.ITnegotiations.com
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9. True-Up Changes: How Much to Count:
Previous Terms: New Terms:
Additional Products: For Products
that have been previously ordered.
Enrolled Affiliate must determine
the Additional Products used and
order the License difference (if any).
For Additional Products that have
been previously ordered under this
Enrollment, Enrolled Affiliate must
determine the maximum
number of Additional Products
used since the latter of the initial
order, the last true-up order or the
prior anniversary date and submit a
true-up order that accounts for any
increase.
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