Gartner Research

Key Terms to Negotiate in Your Salesforce.com Master Subscription Agreement

Published: 30 October 2014

ID: G00270004

Analyst(s): Robert P. Desisto, Alexa Bona

Summary

Buyers of salesforce.com subscriptions often don't know what can be negotiated. Protecting the renewal price and subscription metric, documenting what is in the various service editions, and getting SLAs with meaningful remedies are critical to contain cost and risk.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Include Descriptions of the Scope of Salesforce.com Editions in the Contract, With Rebundling Protections
  • Ensure That Any Documents That Are Referenced by Website Links Are Included in the Contract and Do Not Diminish
  • Negotiate a Maximum Net Price Increase of 3% to 5% on Any Renewal Term
  • Negotiate a Total Account Value Recognition Clause
  • Negotiate Unit-Price Reductions If Volumes Increase Significantly, as Well as Price Holds for Additional Service Lines
  • Define the Pricing Metric, and Ensure That You Can Do at Least One Renewal Using That Same Metric to Protect Against Future Price Increases
  • Negotiate SLAs Related to Uptime and, If Possible, Performance and Backup and Recovery
  • Negotiate Effective Remedies If the SLAs Are Missed
  • Negotiate Data Extraction and Termination Clauses
  • Negotiate Definitions of Indirect Access Clauses

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