Gartner Research

Know These Five Subscription Purchasing Options to Optimize Costs on Your Salesforce Negotiation

Summary

Application leaders and sourcing and vendor management leaders often assume Salesforce has only one purchasing option, but there are at least five. Select the most appropriate purchasing option to optimize overall discounts and key terms, and reduce shelfware.

Published: 08 March 2017

ID: G00318423

Analyst(s): Adnan Zijadic Jo Liversidge

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Use an Upfront Commitment Option If Subscriptions Will Be Deployed the Year They Are Purchased, or Your Organization Can Afford to Take a Cost Hit in the First Year of Your Contract
  • Use a Staggered or Delayed Commitment If You Have a Multiyear Rollout Planned and Can Commit to a Longer-Term Deal
  • Buy Incremental Subscriptions If Your Organization Is Facing Uncertainty With User Adoption and Budgeting
  • Consider Enterprise License Agreements When Purchasing Quantities Above 5,000 Users
  • Negotiate Usage-Based Pricing If You Have High Leverage and Erratic or Unknown Demand

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