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Cost Optimization Archive Back to IT & The Economy FUNDAMENTALS STEP 1 STEP 2 STEP 3 STEP 4 Answers to Your Questions About Software Licensing, Audits and Storage Answers to Your Questions About Software Licensing, Audits and Storage 4 March 2010 We summarize pressing questions from clients about Microsoft and Oracle licensing, software contract terms and conditions, and software audits. We also look at virtualized software licensing and storage strategies to contain cost. Use our advice on these topics to optimize investment in IT assets. Vendor Risk Management: An IT Procurement Best Practice for Cost Containment Vendor Risk Management: An IT Procurement Best Practice for Cost Containment 24 February 2010 An overconfident transactional approach to IT procurement can increase the risk of rising costs. High-probability risks require assessment and ongoing vendor management to develop more-transparent and accountable vendor relationships. Categorize Vendors in a Strategic Vendor Management Program Categorize Vendors in a Strategic Vendor Management Program 22 February 2010 One of the first steps in creating a formal vendor management program is to separate the strategic vendors from the nonstrategic vendors through a vendor categorization process. Use this discovery to determine which vendors should receive the greatest attention. How to Deal With the Significant Price Increases for Four Oracle Database Products How to Deal With the Significant Price Increases for Four Oracle Database Products 10 February 2010 Oracle customers using four optional database products should be aware that list prices on these products have increased significantly. Take action now to reduce future cost. How to Avoid Expensive SaaS Contracts How to Avoid Expensive SaaS Contracts 9 February 2010 Customers can take some simple steps to avoid unnecessary increases in the costs of their software-as-a-service contracts. Negotiating Vendor Contracts Key Initiative Overview Negotiating Vendor Contracts Key Initiative Overview 5 February 2010 This overview provides a high-level description of the Negotiating Vendor Contracts Key Initiative. IT leaders can use this overview to understand how to improve their contract negotiation processes. Understand Adobe Volume Licensing to Avoid Unexpected Costs Understand Adobe Volume Licensing to Avoid Unexpected Costs 2 February 2010 More and more enterprises have been asking about Adobe licensing, because they need to be more diligent to pass compliance audits and negotiate better deals. Clients must improve their negotiating leverage and avoid unforeseen costs by paying more attention to Adobe licensing. After the Software Audit: Dealing With the Aftermath and Preventing a Repeat Performance After the Software Audit: Dealing With the Aftermath and Preventing a Repeat Performance 2 February 2010 When you close a vendor audit, the focus is usually on minimizing the cost of noncompliance. Whether you emerge unscathed or need to rescue the relationship with the vendor and resolve the issues, these are points to consider during the final negotiation and in the closure report. How to Manage Multisourcing for Lower Costs and Improved Performance How to Manage Multisourcing for Lower Costs and Improved Performance 1 February 2010 CIOs and sourcing managers can use this collection of recently published Gartner research to develop, implement and manage a disciplined approach to multisourcing. This approach ensures that multisourcing delivers the cost, service and business outcomes organizations expect. Q&A for Software Contract Terms and Conditions: Questions From the 2009 ITAM Conference Q&A for Software Contract Terms and Conditions: Questions From the 2009 ITAM Conference 1 February 2010 At Gartner's recent IT Financial, Procurement and Asset Management Summit in November 2009, attendees asked several questions regarding software contract terms and conditions. Questions were asked after the presentation and during one-on-ones with the attendees. Q&A From the IT Financial, Procurement & Asset Summit: Microsoft Licensing Q&A From the IT Financial, Procurement & Asset Summit: Microsoft Licensing 28 January 2010 At Gartner's recent IT Financial, Procurement & Asset Management Summit, attendees asked us several questions regarding Microsoft licensing. Understanding Microsoft's licensing is essential for ensuring compliance with license programs. Six Best Practices When Using Offshore BPO Six Best Practices When Using Offshore BPO 27 January 2010 Organizations must understand the additional challenges of using the offshore labor model to deliver a process that was previously an in-house activity. Use this research to learn how to make offshore business process outsourcing delivery a success. HP CEO Mark Hurd Discusses HP's Strategy, Offerings and Market Trends HP CEO Mark Hurd Discusses HP's Strategy, Offerings and Market Trends 25 January 2010 Gartner analysts recently interviewed Mark Hurd, CEO of HP, the largest IT company in the world. The interview provides insights about HP's strategy and other timely issues. Exploit Cost and Performance Opportunities in the Rapidly Evolving European Help Desk/Desktop Outsourcing Market Exploit Cost and Performance Opportunities in the Rapidly Evolving European Help Desk/Desktop Outsourcing Market 19 January 2010 Global delivery, virtualization, automation and standardization are rapidly changing traditional help desk and desktop outsourcing in Europe. Organizations that want cost-effective, high-performing help desk and desktop services must make these realities a key part of their vision. Findings: Hosted Virtual Desktops Cost More, Not Less, to License Findings: Hosted Virtual Desktops Cost More, Not Less, to License 18 January 2009 Many clients and end users have misinformed expectations about the cost of licensing hosted virtual desktop configurations. Effective software asset management, cost planning and financial management are worth far more than any amount of wishful thinking. Outsourcing Lessons Learned: Take Advantage of the Industrialization of IT Services Outsourcing Lessons Learned: Take Advantage of the Industrialization of IT Services 1 December 2009 Organizations that effectively identify, analyze and adopt alternative models for the delivery of IT services can reduce cost or achieve economies of scale. Use these guidelines to minimize risk when considering software as a service, infrastructure utilities and business process utilities. Findings: Microsoft to End Enterprise Subscription Agreement Discount Program Findings: Microsoft to End Enterprise Subscription Agreement Discount Program 30 November 2009 Microsoft has stated that it will discontinue its long-running promotion for the Enterprise Subscription Agreement on 31 December 2009. Quick customer action may be warranted. Predicts 2010: Future Impacts of Cost Cutting and Cloud in Sourcing IT and Business Process Services Predicts 2010: Future Impacts of Cost Cutting and Cloud in Sourcing IT and Business Process Services 20 November 2009 Difficult economic times have forced enterprises to make difficult choices to cut costs, undertake risk, and explore new delivery and acquisition models. Here, we provide Gartner's predictions for the future of sourcing, selecting, contracting and managing IT services. Organizations Discontinuing Software Vendor Support Must Still Honor Original License Agreement Restrictions Organizations Discontinuing Software Vendor Support Must Still Honor Original License Agreement Restrictions 19 November 2009 Organizations that are considering, or have already, discontinued software vendor support and have moved to internal support or third-party support must still be aware of original software agreement's restrictions on usage rights. Negotiating a Price Escalation Clause or Price Cap in a Software Contract Negotiating a Price Escalation Clause or Price Cap in a Software Contract 17 November 2009 Many clients and end users have misinformed expectations about the cost of licensing hosted virtual desktop configurations. Effective software asset management, cost planning and financial management are worth far more than any amount of wishful thinking. Mitigating Currency Risk in Offshore Outsourcing: Prevent Currency Fluctuations From Impacting Cost Savings or Profit Margins Mitigating Currency Risk in Offshore Outsourcing: Prevent Currency Fluctuations From Impacting Cost Savings or Profit Margins 10 November 2009 When contracting with a service provider with headquarters in a different country, understanding the impact currency fluctuations have on the cost of outsourcing, for both buyer and provider, is critical. Tools for mitigating this risk can help moderate the impact of exchange-rate fluctuations. Negotiating Considerations for Contracting With Smaller Software Vendors Negotiating Considerations for Contracting With Smaller Software Vendors 6 November 2009 Although it is impossible to eliminate the hazards of working with a small vendor, some practices can help minimize your increased risk. Gartner provides negotiating guidance to address several issues you are most likely to encounter when dealing with a small niche player or new entrant. Perform a Network Maintenance Audit as the First Step Toward Cost Savings Perform a Network Maintenance Audit as the First Step Toward Cost Savings 5 November 2009 Enterprises often put more emphasis on negotiating product discounts than on maintenance. It is equally important to negotiate maintenance discounts because, as an annuity service, it will last for years. We present a process to control the cost of ongoing network maintenance. Two Indispensable Provisions to Protect Your Software Investment Over Time Two Indispensable Provisions to Protect Your Software Investment Over Time 5 November 2009 Correct use of a migration software provision combined with a minimum support period provision in your software contracts can dramatically reduce the likelihood of undesirable consequences following the acquisition of your software vendor by another entity. Software Licensing Cost Can Spiral When Doing a Server Consolidation Software Licensing Cost Can Spiral When Doing a Server Consolidation 2 November 2009 Server consolidation requires IT asset managers to deal with several challenging software licensing issues. Responding to these issues during the change management process before consolidating servers will avoid licensing issues, unintended costs and inadvertent loss of usage rights. What Users Need to Do Before Procuring z10 Capacity at Year-End What Users Need to Do Before Procuring z10 Capacity at Year-End 29 October 2009 This research outlines what you need to know if you are negotiating for an IBM mainframe before year-end. Q&A: How to License Software Under Virtualization Q&A: How to License Software Under Virtualization 28 October 2009 Many organizations have been struggling with the challenges of licensing software under server and desktop virtualization. The answers to frequent client questions from recent Gartner events and analyst inquiries are addressed, but there are no easy magic answers. Prepare for an Impending Software Audit Prepare for an Impending Software Audit 27 October 2009 Most software audits result in unexpected and damaging costs to the client organization. An organization must take several steps before, during and after an audit to manage and minimize these costs. Reduce the Risk of Noncompliance in Case of Software Audits Reduce the Risk of Noncompliance in Case of Software Audits 21 October 2009 Unexpected audit costs and noncompliance fees following a software audit can severely hurt an IT budget. A targeted plan to review licensing, negotiate contract terms and manage internal processes can protect against audit risks. Outsourcing Lessons Learned: Negotiate for Cost Improvement and Service Enhancement Outsourcing Lessons Learned: Negotiate for Cost Improvement and Service Enhancement 20 October 2009 Cost cutting in outsourcing can reduce or eliminate the business value that outsourcing can deliver. Use this research to negotiate or renegotiate outsourcing contracts to reduce costs but still improve business value. Delivering Optimal IT Costs Is the Focus of the Upcoming IT Finance, Procurement and Asset Management Summit Delivering Optimal IT Costs Is the Focus of the Upcoming IT Finance, Procurement and Asset Management Summit 12 October 2009 This spotlight summarizes some of the research Gartner will present at its 2009 IT Financial Procurement and Asset Management Summit in November. Gartner insight will help summit attendees to optimize their investment in IT assets. Mitigate Risk and Optimize Value in SAP Enterprise Agreements Mitigate Risk and Optimize Value in SAP Enterprise Agreements 9 October 2009 SAP enterprise licensing can increase costs when customers are unsure about their plans to deploy and use software. Use this research to effectively plan for and negotiate flexible SAP enterprise agreements that deliver cost, service and business outcomes. Defining the Vendor Management Office Defining the Vendor Management Office 28 September 2009 Vendor management is a key IT discipline that often requires coordination through a vendor management organization. Five Critical Success Factors for Advanced IT Asset Management and Successful IT Five Critical Success Factors for Advanced IT Asset Management and Successful IT 28 September 2009 Before costs can be optimized, there has to be an efficient way to track each cost. The IT asset manager delivers efficient cost management by specializing in the critical competencies needed to optimize IT asset investments. Evaluating Rural Sourcing in the U.S. as an Alternative to Offshore Outsourcing Evaluating Rural Sourcing in the U.S. as an Alternative to Offshore Outsourcing 24 September 2009 Many U.S. enterprises are outsourcing IT services to offshore locations, while others are exploring or expanding their use of domestic rural sourcing. This tutorial will help CIOs and sourcing managers to understand and address key issues when evaluating rural outsourcing. Case Study: CVS's HR BPO Contract With IBM Offers a Lesson in Setting Shared Goals and Mutual Objectives Case Study: CVS's HR BPO Contract With IBM Offers a Lesson in Setting Shared Goals and Mutual Objectives 22 September 2009 In 2006, pharmacy company CVS Caremark signed a 10-year HR outsourcing contract with IBM. This case study serves as a three-year "check-in" to assess how both parties have successfully achieved their goals. Managing BPO: Frontline Lessons Learned by Contract Managers Managing BPO: Frontline Lessons Learned by Contract Managers 22 September 2009 We review and analyze five key lessons learned in managing BPO deals from an important source: actual quotes of critical success factors paraphrased from frontline BPO sourcing managers. How Many IT Asset Management Inventory Tools Do You Need: Let Me Count the Ways How Many IT Asset Management Inventory Tools Do You Need: Let Me Count the Ways 26 August 2009 Although companies may have many inventory options for their IT assets, they struggle to determine which one should become the standard for IT asset management purposes. Here, we analyze the various use cases of multiple inventory solutions. Q&A: Renegotiating Outsourcing Contracts in Tough Economic Times Q&A: Renegotiating Outsourcing Contracts in Tough Economic Times 19 August 2009 In a panel discussion at the 2009 Gartner Outsourcing and IT Services Summit in London, the vice president of Gartner's Best Practices Council for Sourcing and Vendor Management Executives asked Rolls-Royce and SKF for their real-world advice to effectively renegotiate contracts. Assign Software Licenses to Cut Unbudgeted Costs: Software Asset Management Best Practice Assign Software Licenses to Cut Unbudgeted Costs: Software Asset Management Best Practice 17 August 2009 Assignment records are often overlooked as an essential mechanism by which purchase records can be reconciled with inventory. The complexities of software licensing are best managed during the allocation of licenses for use. Tutorial for Solar Power Purchase Agreements: Green Electricity With No Money Down Tutorial for Solar Power Purchase Agreements: Green Electricity With No Money Down 7 August 2009 Distributed photovoltaic electricity generation has come of age. Reliable solar technologies and power purchase agreement vendors enable U.S. enterprises to hedge their exposure to utility rates, buy renewable electricity, optimize costs and limit capital expenditures. The 12 Difficult Questions You Must Pose to CRM SaaS Vendors to Reduce Cost and Risk The 12 Difficult Questions You Must Pose to CRM SaaS Vendors to Reduce Cost and Risk 7 August 2009 Organizations that ask astute questions in areas where SaaS vendors have not always delivered will better understand their risks and, in competitive situations, often be able to leverage the results to negotiate better contracts. We identify 12 key areas to push for some real answers. IT Asset Management Market Penetration Is Accelerating IT Asset Management Market Penetration Is Accelerating 5 August 2009 ITAM market penetration is becoming mainstream, driven by a number of factors, including economic conditions, IT Infrastructure Library, virtualization, and software license management. Gartner Polls and Surveys Show an Increase in Software License Audits Gartner Polls and Surveys Show an Increase in Software License Audits 31 July 2009 Gartner has been polling clients and conference attendees regarding software audits. In the past year, we have seen a significant increase in the numbers experiencing audits. We advise clients on how to reduce the risk of audits and minimize the pain if audits occur. Top 10 Tips for Negotiating Better Deals on x86 Servers Top 10 Tips for Negotiating Better Deals on x86 Servers 28 July 2009 Although x86 servers are highly standardized products, purchasers typically don't see competitive discounts unless they invest in the negotiation process. Those that don't invest time negotiating can end up paying 5% to 15% more than necessary. The IT Procurement Practices That Clients Apply and the Best Practices That Gartner Recommends The IT Procurement Practices That Clients Apply and the Best Practices That Gartner Recommends 28 July 2009 IT procurement managers reported the IT procurement practices they use to increase efficiency and add value. Use this research to understand the practices that IT procurement managers are applying, and the best practices that Gartner recommends across key areas of IT procurement. Negotiating x86 Server Contracts: It's Time to Recalibrate Your Discounts Negotiating x86 Server Contracts: It's Time to Recalibrate Your Discounts 24 July 2009 The economic climate has created opportunities to negotiate discounts that could be 10% to 15% better than those available just a year ago. Ten Factors to Consider When Looking at Third-Party Maintainers as an Alternative to OEM Support for Hardware Ten Factors to Consider When Looking at Third-Party Maintainers as an Alternative to OEM Support for Hardware 24 July 2009 Third-party maintainers are a viable alternative to OEMs for most, if not all, types of IT infrastructure. When selecting a TPM to consolidate contracts, organizations must consider 10 key factors. Overcome the Limitations of Unlimited Software License Agreements Overcome the Limitations of Unlimited Software License Agreements 21 July 2009 Unlimited or unmetered software licensing agreements are often proposed by vendor salespeople as the best way to license software, especially on virtual servers. Understand the risks and rewards to determine when and on what terms unlimited enterprise agreements are the right thing to do. Using Lean Principles to Improve Multisourcing Disciplines Using Lean Principles to Improve Multisourcing Disciplines 17 July 2009 Multisourcing is a discipline. We focus on taking lean concepts and principles, such as the seven deadly wastes and the kaizen 5S approach, to help organizations improve and further mature their multisourcing competencies and processes Negotiating Without Competitive Leverage: Aligning IT Procurement Best Practices With Vendor Relationship Management Negotiating Without Competitive Leverage: Aligning IT Procurement Best Practices With Vendor Relationship Management 16 July 2009 IT providers often have an uncomfortably strong position in contract negotiations because of high switching costs and a lack of alternatives. This is where IT procurement is most valuable. We examine the negotiating skills and approaches needed most where there is no credible market competition. Key Messages From the 2009 London Outsourcing Summit Key Messages From the 2009 London Outsourcing Summit 16 July 2009 Six hundred attendees from 46 countries attended the 2009 Gartner Outsourcing and IT Services Summit in London to improve business outcomes through sourcing. The event delivered the insight firms need to optimize costs quickly and obtain sustainable long-term business value. Microsoft's Limited Windows 7 Downgrade Rights Will Cost Many XP Organizations Money Microsoft's Limited Windows 7 Downgrade Rights Will Cost Many XP Organizations Money 30 June 2009 Microsoft's policy on downgrades from OEM versions of Windows 7 to XP will help organizations without Windows client SA for a limited time, but it will confuse asset management and cost companies more to initially run Windows XP on new PCs bought after an unknown date. Storage Vendors Seek to Entice New Customers With Guarantee Programs Storage Vendors Seek to Entice New Customers With Guarantee Programs 26 June 2009 Compellent, Isilon, NetApp and Pillar Data all offer guarantees to substantiate claims that their storage solutions reduce capacity requirements or increase utilization rates. The programs differ widely, but each is backed by remediation and is worth considering if the solutions meet your needs. ACS Makes IT Investment Dollars Available to Clients During the Recession ACS Makes IT Investment Dollars Available to Clients During the Recession 25 June 2009 Affiliated Computer Services held its annual analyst and advisor event, focusing on how ACS plans to help clients during this economic downturn. ACS emphasized client relationships and its "Project Advantage" initiative through which the company is willing to invest cash and services to aid clients. Improve Your Outsourcing Deal With the Proper Gainsharing Structure Improve Your Outsourcing Deal With the Proper Gainsharing Structure 16 June 2009 The appropriate use of incentives, specifically gainsharing, can be critical to the success of outsourcing contracts. This contract element is often ignored and/or misused by enterprises, which require a framework for the successful use of gainsharing in outsourcing deals. How Enterprises Can Manage Vendor Risk in Global Sourcing Deals How Enterprises Can Manage Vendor Risk in Global Sourcing Deals 16 June 2009 Managing global sourcing deals is complex and requires significant upfront consideration to overcome all the unique challenges. We outline how executives and sourcing contract managers can mitigate the associated risks. Cost Optimization: Best Business Process Outsourcing Opportunities, 2009 Cost Optimization: Best Business Process Outsourcing Opportunities, 2009 11 June 2009 Arguably the most mature of technology-enabled processes, outsourcing payroll represents a prime opportunity to quickly cut costs. Other areas of quick cost reduction opportunity through business process outsourcing include accounts payable and customer data analytics. How to Balance Outsourcing Excellence, Innovation and Cost How to Balance Outsourcing Excellence, Innovation and Cost 10 June 2009 CIOs and IT managers are often overwhelmed with multiple pressures, escalated issues and cost pressures due to the recession. When CIOs take a strategic approach to balancing outsourcing, innovation and cost, IT services can run smoothly and deliver business outcomes cost-effectively. IT Procurement Best Practice: Develop Multisourcing Capabilities IT Procurement Best Practice: Develop Multisourcing Capabilities 1 June 2009 When internal infrastructure services and costs are poorly understood, misunderstandings often follow about products and services sourced externally. As organizations execute sourcing decisions, time and cost pressures increase the risk that business requirements will be compromised. Optimize Data Center Outsourcing Costs by Correctly Using the Nine Deal Complexities Optimize Data Center Outsourcing Costs by Correctly Using the Nine Deal Complexities 22 May 2009 Even in good economic times, organizations seek to reduce costs through outsourcing and, at the same time, expect to receive best-in-class performance. This research helps organizations understand how nine complexity factors can impact the price of a data center outsourcing deal. Overcome IT Procurement Challenges to Increase Efficiency and Add Value Overcome IT Procurement Challenges to Increase Efficiency and Add Value 29 May 2009 When organizations overcome challenges in eight areas of IT procurement, IT procurement can deliver cost savings and process efficiency. Gartner identifies these challenges and explains how procurement managers can tackle them. Control IT Spending for Microsoft Licensing Control IT Spending for Microsoft Licensing 29 May 2009 Microsoft's licensing practices continue to challenge organizations as products and policies change frequently. This research collection will help organizations navigate the myriad Microsoft licensing issues. Issues to Consider When Deciding Whether to Renew a Microsoft Enterprise Agreement, 2009 Update Issues to Consider When Deciding Whether to Renew a Microsoft Enterprise Agreement, 2009 Update 28 May 2009 The decision of whether to renew your Microsoft Enterprise Agreement should not be taken lightly. In these challenging economic times, it is even more essential to carefully weigh your available options and consider alternative licensing scenarios. How to Use Benchmarking Clauses to Reduce Outsourcing Costs How to Use Benchmarking Clauses to Reduce Outsourcing Costs 28 May 2009 Enterprises that outsource IT services should consider including benchmarking clauses in many of their contracts. Benchmarking reduces the price of outsourcing deals and ensures that contracts remain cost-effective and efficient. Develop Key Competencies to Manage the IT Procurement Function Effectively Develop Key Competencies to Manage the IT Procurement Function Effectively 27 May 2009 IT managers and users often involve IT procurement personnel only late in key purchasing decisions. When IT procurement employees develop key competencies to become trusted advisors, they can help IT users source quality products and services faster and more cost-effectively. Impact of the Economic Downturn on Application Service Prices, 2Q09 Impact of the Economic Downturn on Application Service Prices, 2Q09 19 May 2009 Organizations are realizing discounts of 5% to 15% on application services during the economic downturn. Understand the factors affecting application service pricing in 2009 to optimize these potential discounts. Introducing a Second Network Vendor Saves Money and Solidifies Operations Introducing a Second Network Vendor Saves Money and Solidifies Operations 18 May 2009 There is growing interest in the potential cost savings from adding a second or complementary vendor for enterprise network infrastructures. Addressing operational considerations will ensure the successful integration of the second vendor, while reducing capex by 30% or more. Optimize Help Desk Outsourcing Costs by Correctly Using the Nine Deal Complexities Optimize Help Desk Outsourcing Costs by Correctly Using the Nine Deal Complexities 15 May 2009 Even in good economic times, organizations seek to reduce costs through outsourcing, but often still expect to receive best-in-class performance. This research helps organizations understand how nine complexity factors can impact the price of an outsourcing deal. How to Get a Better Deal on PC Life Cycle Management Tools How to Get a Better Deal on PC Life Cycle Management Tools 15 May 2009 Organizations are increasingly using price as the deciding factor in PC life cycle management product decisions. Use the trends in the market to negotiate prices down, but don't use pricing as the only product decision driver. Monitoring Providers' Actions to Increase Flexibility and Avoid Bankruptcy Monitoring Providers' Actions to Increase Flexibility and Avoid Bankruptcy 15 May 2009 The only current market certainty is uncertainty, so clients must be very vigilant. IT service providers face multiple parallel threats and opportunities, and must act now to reduce their cost and increase their strategic investments. Understand Outsourcing Evaluation, Selection and Transition Costs to Lower Risk Understand Outsourcing Evaluation, Selection and Transition Costs to Lower Risk 11 May 2009 Organizations looking to outsource IT infrastructure services must understand how much it costs to formally evaluate and transition to an external service provider. Enterprises that make the right investment upfront will reduce outsourcing deal risks. Before Taking a Dual-Vendor Approach, Consider the Server Technology Before Taking a Dual-Vendor Approach, Consider the Server Technology 4 May 2009 When considering the use of a second server vendor, think about the types of machines involved, because the pros and cons vary widely. The approach that may work for x86 servers could backfire for proprietary or even reduced instruction set computer/Itanium Unix platforms. When Are Two Server Vendors Better Than One? When Are Two Server Vendors Better Than One? 1 May 2009 Using two server suppliers fosters better pricing and service due to increased competition. However, the benefits must outweigh the added complexity and support burden that a second vendor brings. Use our guidelines to determine whether the dual-server-vendor approach works for your business. Do New Virtualization and Streaming Use Cases Bend or Break Software Licensing Rules? Do New Virtualization and Streaming Use Cases Bend or Break Software Licensing Rules? 23 April 2009 Application virtualization can create higher than anticipated licensing costs. Customers need to understand how some software vendors earn more by not changing their licenses to accommodate new virtualization use cases, making it a matter for negotiation. Vendor Risk Management: Criteria You Can Use to See Whether Your Vendor Is in Trouble Vendor Risk Management: Criteria You Can Use to See Whether Your Vendor Is in Trouble 21 April 2009 Enterprises are becoming more reliant on external vendors to provide goods and services necessary to run their businesses and maintain competitiveness. Reliance on vendors can be a risky proposition, especially with current economic challenges. Learn universal criteria to judge vendor risk. Buy Industrialized Services to Quickly Reduce Outsourcing Costs and Risks Buy Industrialized Services to Quickly Reduce Outsourcing Costs and Risks 27 March 2009 Industrialized IT services provide enterprises with new options to reduce operating costs and capital expenditures through outsourcing. All enterprises should consider these options when they launch or manage an outsourcing initiative. Cost Optimization: Small Negotiation Trade-offs Can Add Up to Large PC Hardware Acquisition Savings Cost Optimization: Small Negotiation Trade-offs Can Add Up to Large PC Hardware Acquisition Savings 26 March 2009 Small trade-offs in requirements or timing can cause PC hardware acquisition savings. If you add enough of them together, such savings can become significant. Cost Cutting Can Reduce Enterprise Search License Costs by $250,000 or More Cost Cutting Can Reduce Enterprise Search License Costs by $250,000 or More 20 March 2009 Enterprises can postpone or even eliminate expenditure of $250,000 or more by federating existing search engines or by selecting tactical measures as alternatives. Negotiate Oracle's Software License Agreements to Reduce Unexpected Cost Negotiate Oracle's Software License Agreements to Reduce Unexpected Cost 18 March 2009 Organizations face unexpected costs if they do not understand the areas of risk in an Oracle license agreement. Software license negotiators or procurement/sourcing staff need to negotiate contract terms and conditions, where possible, to save money throughout the deal and to align cost with value. Five Steps to Utility Pricing That Develop Chargeback Into Cost Self-Optimization Five Steps to Utility Pricing That Develop Chargeback Into Cost Self-Optimization 17 March 2009 Some businesses are asking their IT organizations for utility pricing without thinking through the implications of how IT is funded. An IT utility requires a business plan, working capital and five major step changes for the internal IT organization. Will Pay per Use Help to Cut Software License Costs? Will Pay per Use Help to Cut Software License Costs? 17 March 2009 Pay per use promises a new era of more-accurate value-based software pricing, and expectations are high. However, many obstacles persist to prevent software providers from delivering on that promise. Six Risk Factors to Consider Before Terminating Business Application Maintenance Six Risk Factors to Consider Before Terminating Business Application Maintenance 13 March 2009 Users are questioning whether they should end their increasingly costly maintenance agreements, particularly for stable applications. Such a decision demands a proper evaluation. Six risk factors should be considered before making a decision to terminate business application maintenance. Optimize Desktop Outsourcing Costs by Correctly Using Nine Deal Complexities Optimize Desktop Outsourcing Costs by Correctly Using Nine Deal Complexities 13 March 2009 Even in good economic times, organizations seek to reduce costs through outsourcing, but often still expect to receive best-in-class performance. This research helps organizations understand how nine complexity factors can impact the price of an outsourcing deal. Create a Backup Plan for Continued Support of Nortel Environments Create a Backup Plan for Continued Support of Nortel Environments 12 March 2009 Following Nortel's January 2009 announcement that it had filed for creditor protection, some end-user organizations are keen to make contingency plans for support of their Nortel communications environments. This document shows them how. Understand Oracle's Virtualization Policy to Avoid Unexpected Costs Understand Oracle's Virtualization Policy to Avoid Unexpected Costs 9 March 2009 Many organizations are using virtualization software, such as VMware, with their Oracle database management system and infrastructure licenses. Oracle has created policies for how it counts usage under virtualization, but these policies are not a formal part of the Oracle license agreement. Market Pricing: Managed, Hosted and CaaS Outsourced VoIP Delivery Market Pricing: Managed, Hosted and CaaS Outsourced VoIP Delivery 6 March 2009 Enterprises have an increasingly greater selection of managed and hosted voice over Internet Protocol outsourced delivery options. Rather than purchase their own infrastructure, enterprises can opt for per-user, per month payment options, adhering to the communications as a service model. Cost Cutting 2009: Office 2007, No Business Case and No SA? Wait for Office 14! Cost Cutting 2009: Office 2007, No Business Case and No SA? Wait for Office 14! 6 March 2009 Organizations that want to upgrade to Microsoft Office 2007 but do not have licenses or a firm business case should not buy the software or deploy it until Office 14 ships -- most likely in the first half of 2010. This will enable organizations to get two versions of Office for the price of one. Six Ways to Save on C&SI Services Six Ways to Save on C&SI Services 6 March 2009 We explore some of the fundamental ways organizations can save on consulting and system integration services, along with their advantages and pitfalls. Managing the Risks Inherent in VC-Funded Startups Managing the Risks Inherent in VC-Funded Startups 5 March 2009 In the current economic environment, higher risks are associated with purchasing products from venture-capital-funded vendors. Enterprises need to analyze and manage these risks. Early IBM Results Offer an Exception During Economic Downturn Early IBM Results Offer an Exception During Economic Downturn 4 March 2009 IBM says its business in January 2009 remained strong, consistent with 4Q08 results. Unlike many other technology providers, IBM is not suffering significantly from the economic downturn, due to its business model. Invest in Storage Professional Services, Not More Hardware Invest in Storage Professional Services, Not More Hardware 27 February 2009 A storage professional services engagement can help you reclaim wasted storage capacity and improve storage utilization in your existing infrastructure and help stave off new hardware acquisitions. Case Study: Perform Invoice Reconciliation to Save Costs Case Study: Perform Invoice Reconciliation to Save Costs 26 February 2009 Recent client experiences have highlighted the need for invoice reconciliation. Mundane though it may be, auditing invoices is a very basic, yet often ignored, practice in an ongoing IT asset management program that yields significant savings. Reduce Costs of Data Integration Tools Licensing Through Improved Negotiation and Procurement Practices Reduce Costs of Data Integration Tools Licensing Through Improved Negotiation and Procurement Practices 25 February 2009 Enterprises can save $100,000 or more on investments in data integration tools through effective vendor management approaches. Achieving these results requires a clear understanding of vendors' pricing models, knowledge of pricing trends in the market and effective use of negotiation techniques. Negotiating Salesforce.com Pricing Negotiating Salesforce.com Pricing 18 February 2009 Gartner has seen salesforce.com deploy a number of new contract negotiating tactics. Many of these tactics will cost customers more money than is necessary, if not handled correctly. Top 10 Extreme Negotiation Tactics for Problematic Vendors Top 10 Extreme Negotiation Tactics for Problematic Vendors 13 February 2009 When dealing with problematic vendors, use Gartner's Top 10 techniques to reduce product and service prices in contracts. Potential Impact of Economic Downturn on IT Infrastructure Outsourcing Prices, 1Q09 Potential Impact of Economic Downturn on IT Infrastructure Outsourcing Prices, 1Q09 11 February 2009 Prices for outsourcing infrastructure services likely will be reduced between 5% and 20% through 2010. Reasons for these price reductions are the recession, which is affecting markets worldwide, IT budget constraints and cost-focused contract renegotiations, along with other emerging forces. Best Practices: Saving Costs Through Outsourcing and IT Services Best Practices: Saving Costs Through Outsourcing and IT Services 11 February 2009 Enterprises often outsource to cut costs, but fail to assess how outsourcing will achieve these savings. Businesses need to analyze the sources of savings to achieve sustained long-term benefits. Optimize Software Licensing Costs With Software Asset Management Optimize Software Licensing Costs With Software Asset Management 2 February 2009 An asset represents an investment. Software asset management is the discipline of managing investments in software licenses and their ongoing, potential cost liabilities. Many businesses can improve the way they manage software investments and associated costs by following this maturity model. Reduce Cost and Risk: Conduct a Benchmark Before Signing a BPO Deal Reduce Cost and Risk: Conduct a Benchmark Before Signing a BPO Deal 30 January 2009 If you don't conduct a benchmark or baseline before signing a business process outsourcing deal, then contract and financial disputes with service providers may erupt as each side struggles to prove what the environment was originally like. Avoid challenges by conducting a pre-outsourcing benchmark. Predicts 2009: Recession-Accelerated Shifts in IT Services Predicts 2009: Recession-Accelerated Shifts in IT Services 29 January 2009 Disruptive shifts in new demand and supply patterns, and the current uncertain and recessionary economic conditions will drive changes for how IT services are bought and from whom. Q&A: How to Develop an IT Procurement Organization Q&A: How to Develop an IT Procurement Organization 21 January 2009 At our 2008 IT Financial, Procurement & Asset Management Summit, attendees raised questions on procurement outsourcing, how to move from tactical to strategic procurement, how to progress the procurement function maturity levels, and how procurement should perform in the current economic downturn. Q&A on the 'Satyam Effect' on the IT Services Industry Q&A on the 'Satyam Effect' on the IT Services Industry 21 January 2009 The Satyam Computer Services scandal clearly calls into question Satyam's future and how it will impact the entire IT services industry. Here, we answer questions with regard to the "Satyam Effect." Q&A: Delivering Value From IT Procurement Q&A: Delivering Value From IT Procurement 19 January 2009 During the 2008 IT Financial, Procurement and Asset Management Summit, attendees raised several questions on developing procurement competencies and skills, enhancing internal stakeholder engagement, achieving better cost savings, and applying a fair-value procurement methodology. How to Structure Incentives and Penalties in Outsourcing Contracts How to Structure Incentives and Penalties in Outsourcing Contracts 02 December 2008 The appropriate use of incentives and penalties is critical to the success of outsourcing contracts. These contract elements are often misused by enterprises, which require a framework for the successful use of incentives and penalties in outsourcing deals. SaaS Contracting Guide: Avoid Costly Mistakes SaaS Contracting Guide: Avoid Costly Mistakes 19 November 2008 Buyer interest is increasing in software-as-a-service solutions. In these deals, contractual terms are different from traditional on-premises software licenses. Buyers must understand hidden costs and the different types of protection required to negotiate sustainable deals with predictable costs. How to Get a Great Deal on Your Business Application Software Licenses How to Get a Great Deal on Your Business Application Software Licenses 31 October 2008 With cost cutting currently paramount, the focus on discounts on application software deals is high. Although the discount is important, the commercial emphasis should be on ensuring that you purchase the right product with contract protections offering long-term flexibility and cost control. Fifteen Ways to Save Money in an IBM Mainframe Environment Fifteen Ways to Save Money in an IBM Mainframe Environment 27 October 2008 Fifteen tips to help you optimize your mainframe procurement and life cycle costs, including things you can do before year-end 2008. Reduce Your Software Total Cost of Ownership by Including These Missing Terms and Conditions Reduce Your Software Total Cost of Ownership by Including These Missing Terms and Conditions 23 October 2008 When negotiating a software license agreement, the negotiator will often start with the vendor's agreement and attempt to negotiate changes in the agreement to make it more balanced. However, the highest risks often are the "missing" terms and conditions that need to be added to the agreement. Cost Cutting in IT to Cope With Economic Slowdown Cost Cutting in IT to Cope With Economic Slowdown 05 March 2008 For a variety of reasons, IT organizations are under pressure to reduce the cost of IT and to use IT to reduce the operating costs of the enterprise. This report compiles a list of common IT-related budget-cutting ideas with links to specific research currently available from Gartner. Cost Cutting in IT Cost Cutting in IT 6 February 2008 Obtaining maximum business value from IT spending will always be an ongoing client imperative. But with a potential business downturn ahead for many clients, the next most important business value action to take will be to cut IT costs.	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