Looking at you IBM, SAP, Salesforce, Workday, and Rackspace...
Every year, certain major IT suppliers enter their most aggressive selling season as their fiscal year end approaches. When their sales and revenue pressure goes up, the pressure on customers goes up. Whether the target is more licenses, longer terms, higher commitments, or migration into higher margin products, suppliers will position these moves as strategic improvements, but they are often driven by internal quota demands, stock performance expectations, bonuses and compensation cycles.
With Salesforce and Workday both closing their fiscal year on January 31, and IBM, SAP, and Rackspace all operating with predictable renewal and upsell cycles to close out December 31, it is important for CIOs and procurement leaders to recognize the signals and manage these interactions on their terms.
Below we examine how we see ‘The Squeeze’ show up for five major suppliers, and how well-informed customers can convert supplier urgency - into buyer advantage. Of course, the best way to do that is call us, but here are some ideas to get you started.
Salesforce, Fiscal End January 31
Why the squeeze
How the squeeze shows up
What buyers should do
Why the squeeze
How the squeeze shows up
What buyers should do
Why the squeeze
How the squeeze shows up
What buyers should do
Why the squeeze
How the squeeze shows up
What buyers should do
Why the squeeze
How the squeeze shows up
What buyers should do
Summary
Let’s be honest, none of these suppliers are hurting. Salesforce, Workday, SAP, IBM, Rackspace, and the rest of the enterprise software and cloud universe have enjoyed incredible revenue growth over the last several years. And where does that growth come from? Spoiler alert, it comes from you, the customer.
These companies have mastered the fine art of turning routine renewals into high drama, complete with countdown clocks, “executive escalations,” and the classic “this pricing is only good until Friday” performance. Their quotas go up, their earnings go up, their stock prices go up, and magically, so do your bills.
That is the real heart of the squeeze. Not innovation. Not transformation. Not “customer success.” The squeeze is about one thing: helping suppliers hit their fiscal year end targets with your budget.
But here is the part they do not love. Once you understand the pattern, their timing advantage disappears. Their desperation becomes your leverage. Their urgency becomes your opportunity.
Customers who prepare early, benchmark aggressively, know their usage, and refuse to sign under pressure consistently outperform the market. They lock in better pricing, cap future increases, protect flexibility, and make the supplier sweat a little for a change.
At NET(net), we help clients reverse the squeeze. Instead of being dragged into the vendor’s fiscal circus, you dictate the timing, you control the negotiation, and you secure the value. And nothing disrupts a supplier quota party quite like a well-prepared buyer who is not playing along.
When the squeeze is coming, make sure you are the one applying it, not getting crushed by it.
Sources
Salesforce fiscal calendar
https://www.salesforce.com/company/investor/faq
Salesforce SEC filings
https://www.salesforce.com/company/investor/sec-filings
Workday fiscal year reference
https://investor.workday.com
Rackspace State of Cloud Report 2025
https://www.rackspace.com/blog/2025-state-cloud-report
Rackspace Google Cloud case study
https://www.rackspace.com/case-studies/mrs-ts-pierogies
Rackspace Google Cloud practice
https://www.rackspace.com/cloud/google-cloud
At NET(net), we don't just optimize IT investments, we weaponize them for competitive advantage. As the world's leading technology investment optimization firm, we've spent over two decades perfecting the art and science of extracting maximum value from technology supply chains while neutralizing vendor pricing manipulation.
Our battle-hardened methodology has influenced trillions of dollars in technology investments, captured hundreds of billions in documented value, and transformed how enterprises approach every facet of IT spend—from emerging technology such as AI, ML, IoT, RPA, Quantum, and Blockchain, to IaaS, PaaS, and SaaS, to enterprise hardware and software solutions, and professional services arrangements including strategic outsourcing relationships.
We're not consultants who theorize about optimization, we're the specialists who help you devise and execute your strategy. Our proven frameworks turn vendor pricing chaos into strategic opportunity, licensing complexity into competitive advantage, and cost centers into value engines. Whether you're facing an aggressive vendor audit, navigating a forced migration, or simply refusing to accept runaway IT costs, NET(net) delivers the expertise, experience, and execution you need to dominate rather than merely survive.
Founded in 2002, NET(net) has established itself as the essential strategic partner for enterprises and technology providers who demand performance, not promises. We've mastered every major area of IT optimization because we understand that in today's vendor-hostile environment, half-measures guarantee defeat.
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