Gartner Research

Follow Gartner's T4 Process for IBM-Specific Negotiation Tactics, Templates, T&Cs and Timing

Published: 10 November 2015

ID: G00290828

Analyst(s): Christopher Dixon, Jo Ann Rosenberger, Rob Schafer

Summary

IBM's unique pricing, licensing and contract governance for IBM System z mainframe and Passport Advantage software challenges technology procurement professionals. Gartner's IBM-specific T4 process exposes unique complexities to analyze proposals and negotiate deals that optimize pricing and T&Cs.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • T1 Tactics — Engage With IT and Business Stakeholders and Outside Experts to Identify Competitors and Alternative Solutions That Threaten IBM's New and Ongoing Revenue Stream
    • Stakeholder Absence Undermines the IBM Competitive Product and Solution Assessment
    • Credible Competition Is Fuel for Negotiation Readiness
  • T2 Templates — Use Gartner's IBM-Specific RFQ Template to Uncover Necessary Pricing and Terms Details Requisite for Effective Proposal Analyses and Negotiations
    • IBM's Unique Passport Advantage Program Must Be Managed to Your Favor
    • An IBM-Specific RFQ Template Is Required to Identify and Expose Requisite Proposal Analysis Detail
  • T3 T&Cs — Create and Maintain an IBM-Specific Contract Governance Grid and T&Cs Checklist for New and Renewal Negotiations by Building on the Grid and Checklists in Figures 3, 4 and 5 of This Research
    • The IBM Customer Agreement Does Not Govern All IBM Software
    • Ambiguity Around Governing IBM Agreements Harms Contract Compliance Management
    • Weak or Missing T&Cs Checklists Undermine Effective IBM ELA and IULA Negotiation Planning
  • T4 Timing — Develop a Negotiating Strategy Based on Team Collaboration That Involves CxO-Level Management to Strategically Time and Finalize Negotiations to Align With IBM Quarter-End and Fiscal Year-End Dates
    • CFO Intervention May Be Needed for Capex-Opex Analysis
    • The C-Suite Can Help Strategically Time Final Approval to Align With IBM Fiscal Year-End
  • Follow Gartner's IBM-Specific T4 Process to Realize Cost Savings and Cost Avoidance, and Negotiate IBM Standard Agreements and Specialized ELA and IULA Contracts With T&Cs That Protect Your Investments
  • Appendix

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