Gartner Research

Key Terms to Negotiate With Workday to Reduce Cost and Risk

Published: 30 September 2013

ID: G00257636

Analyst(s): Alexa Bona


IT procurement professionals can reduce financial risk by negotiating Workday software as a service contracts to include terms such as price escalation caps, full service equivalent metric definitions, increased penalties for missed SLAs and reduced subscription fees prior to deployment.

Table Of Contents
  • Key Challenges



  • Negotiate Price Caps Limiting Price Increases on Any Renewal Term
  • Negotiate for Improving Price Performance if the Volume of FSEs Increases and Price Holds on Newer Services
  • Negotiate Reduced Subscription Fees Prior to Deployment
  • Include High-Level Descriptions of the Scope of Workday Functions and Services in the Contract With Rebundling Protections
  • Stipulate FSE as the Only Pricing Metric to Protect Against Future Price Increases
  • Negotiate Improved SLA Credits and Ability to Terminate the Agreement if Workday Misses SLAs Persistently
  • Increase Liability Protections
  • Include the Right to Perform Annual Security Audits in Addition to SSAE 16 SOC 2 Audit Reports

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