Vendor Negotiation

Paying for IT you don’t use is disadvantageous for business. Binding up costly resources can slow down your entire organization, meaning you get less IT out of every dollar spent.

Companies with expensive software licenses stand to gain the most by keeping an eye on software usage. Regardless of the licensing model used to pay for licenses, the important thing is to have a reliable method of measuring actual software license usage, and to regularly perform usage report analyses.

With the right tools, organizations can take advantage of contract renewals, apply for additional incentives, revisit those contracts that charge a fixed enterprise fee, and see if the provider can charge based on actual usage instead.

Accurate metering and usage reports can enable IT managers to negotiate with their service providers/software vendors, so they can adjust contracts to match the documented usage of their software licenses by using pay-per-use agreements. They can get discounts and tame maintenance costs by revisiting old software contracts. Organizations can also get more savings in negotiating Enterprise License Agreements by using software usage monitoring tool to measure and calculate true global concurrency of license usage and produce accurate software reports across an entire organization.

Pay only for software licenses being used

Metering software usage across the enterprise will not only help in negotiating a pay-per-use license agreement, but it will also allow companies to:

• reduce software costs by cutting surplus licenses;
• better utilize license sharing across time zones;
• provide third party documentation for software license compliance; and
• accurately plan budget for future license costs.