Gartner Research

How to Negotiate Lower Storage Acquisition Costs

Published: 25 June 2013

ID: G00253083

Analyst(s): Stanley Zaffos

Summary

Infrastructure and operations leaders, and storage and purchasing managers, must negotiate potential acquisitions with storage suppliers using a clear game plan that maximizes the probability of obtaining competitive pricing and value from vendor relationships. Here, we provide such a framework.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Make Vendor Negotiations a Core Competency
  • Require Full and Complete Line Item or Bill of Material (BOM) Prices in Unprotected Spreadsheets as Part of a Bid Response
  • Negotiate Hardware and Software Upgrade Costs Upfront When Leverage Is Strongest
  • Lock In Maintenance Caps and Discounts as Part of the Initial Acquisition
  • Negotiate Everything During the Initial Acquisition
  • Request Availability and Performance Warranties When Appropriate
  • Preserve Your Rights When Signing Nondisclosure Agreements (NDAs)
  • Do Not Rely on Vendor Account Teams to Read the Competitive Situation
  • Do Not Prepay Maintenance Fees Without Strong Financial Incentives
  • Allow at Least Three Vendors to Bid for the Business
  • Leave Yourself Enough Time to Negotiate a Cost-Effective Acquisition

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