In a recent Information Week article (chart below), we came across this chart of negotiated discount levels, and we were troubled to learn that only 8% of the companies surveyed get greater than 35% discounts most frequently. Having been helping Clients get greater economic and strategic value from their information technology investments for over 10 years, NET(net) has collectively negotiated over 15,000 deals in the field, and we can’t remember a single time with a single supplier that we haven’t been able to help our Clients achieve greater than a 35% discount level off a supplier’s list price. These imaginary “list prices” for software ...
Read More
The Business Software Alliance (BSA) has recently announced that they're going to offer a "certification" for IT SAM. http://www.itassetmanagement.net/2011/11/15/vendor-audit-forbearance/ The requirements aren't fully defined on their website, but the gist is that you pay the BSA to get certified. You allow the BSA to audit your implementation of their standards (who knows what else they may audit while there). And then you get a two-year audit forbearance from BSA member organizations including Adobe, Microsoft, Symantec and others (see the entire list here). Our recommendation? Do NOT Sign Up for this program without carefully reading the ...
Read More
You’ve heard them talking about it in the hallway… the great deal they got from that supplier. Ever wonder how they knew it was a great deal? Was it based on the starting point of the negotiation in comparison to where things ended up? Was it based on the discount they achieved off the supplier’s imaginary list prices? Was it based on how well the supplier faked their disappointment at having to concede so much value? Was it based on how many times the supplier said it was the best deal they had ever given to anyone? Or, was it based on one of the oldest tricks in the book… the supplier asking them to sign a confidentiality agreement because ...
Read More
As you may have noticed, Microsoft recently revised the terms and conditions of most of its major agreements effective as of 3 October 2011. In this blog, we will provide our take on these changes, and provide a unique, exclusive opportunity to existing Clients only. For prospective clients, contact NET(net) for more information on our comprehensive services including: Advisory, Optimization and Negotiations, and Managed Services as it relates to Microsoft investments. Once again, Microsoft has revised its standard contract terms and conditions for customers who purchase Microsoft licenses via Enterprise Agreements, Select Agreements, and ...
Read More
The Four Core Functions of Strategic Supplier Management Needed to Manage the Shifting Line of Accountability Deeper Into Your Supply Chain: There is a trend in the industry that is moving the line of accountability from within the Client’s walls – deeper into their supply chains. We have seen this traditionally in outsourcing deals, where Clients are deeply reliant on their supply chains for entire integrated business processes – but with the emergence of Software-as-a-Service (SaaS) and Cloud Computing, NET(net) is seeing a deeper level of need for an integrated and managed supply chain in what used to be more captive areas of spend for ...
Read More
Is IT ready to relinquish control of mobile communications and let users use their own Smartphones and tablets in the workplace? Are employees ready for the responsibility that comes along with having a personal device that is capable of accessing company systems? What is apparent is that the consumerism of IT is driving changes in the enterprise and that for many Clients, it is no longer reasonable or practical to restrict users to a particular Smartphone in the workplace. RIM’s Blackberry has enjoyed a long run as the business standard for communications, notably with its email capabilities and deservedly excellent security. But RIM is ...
Read More
At IBM, CEO Sam Palmisano has also been critical of both HP’s board, and also the performance of ousted CEO Mark Hurd. Seeing as how HP has had a historically weak central marketing department, and while it was running rudderless without a CEO, it was in a weakened position to defend itself. IBM attacked HP hard, apparently to increase the damage on HP’s image, helping them in the process. IBM, and in particular, Palmisano viewed Hurd as a CEO who was slowly killing HP in the name of maximizing quarterly returns – and, by extension – market valuation. Palmisano and others resented the adoration Hurd received from Wall Street analysts for ...
Read More
Having a methodical and deliberate understanding of data will determine how it should be stored and protected, which translates into strategies for tiered storage, backup and recovery, archiving and recovery point (and time) objectives for disaster recovery. Should we be surprised we’ve reached this point? After all, data processing has been around at least since the advent of removable type and we’ve been challenged with the proper and cost effective storage of data ever since. With most IT organizations facing unprecedented pressure to serve up rapidly and continuously growing information sets of logically collected data faster and more ...
Read More
Yep. Meg Whitman in as CEO for HP, and Leo Apotheker is out – after only 11 months. It’s the SEVENTH CEO at HP since 1999. Don’t worry, she likely won’t be there long, as this is only the latest completely inexplicable move by the HP board; a board most famous for the uncanny ability to snatch defeat from the jaws of victory at nearly every occasion. Here are five reasons Whitman won’t be able to fix HP: 1. Leo Near Killed HP: Since Leo took over as CEO, the value of HP is down around 50%, and is currently valued as it was in mid-2005. HP has spent $10s of billions on failed acquisitions, including the most recent example of HP missing the ...
Read More
Name an IT expenditure that businesses loath paying but can’t seem to live without. Actually, that probably opens up a lot of IT products and services to criticize, but let’s start with hardware maintenance agreements. To believe your hardware supplier, it is an absolute necessity to protect yourself in the event of hardware failures and, like software support agreements, your access to all the neat software updates that enhance their product. Of course most enterprises want to have protection in the event of failure and keep on top of critical software updates, but most basic hardware warranties are by design a shell of what the enterprise ...
Read More
