I recently had the chance to sit down with Forrester’s Duncan Jones, an industry colleague who happens to be an old pro on software negotiation. Based in the UK, Duncan is currently a Principal Analyst at Forrester Research. Yet his recommendations when it comes to saving money with the SAPs and Oracles of the business applications world are clearly universal. If you’re a Forrester client and you’re looking to save on software negotiations, I’d get to know Duncan, because many of the inner-circle spend tricks of enterprise software license and maintenance savings can’t be explained in a quick interview. I’ll feature this interview with Duncan in two parts.
Jason: What are the biggest levers in negotiating with enterprise software vendors?
Duncan: The largest levers in negotiation are new money. Large software companies are focused on new orders (which presents immediately recognizable revenue).
Jason: What about maintenance revenue? This is high margin revenue, too, no?
Duncan: Vendor sales reps are not necessarily compensated on maintenance renewals. Moreover…