Published: 25 April 2023
As Microsoft Azure’s adoption grows, so do the commitments clients make on their Azure deals. Sourcing, procurement and vendor management leaders must carefully contract based on consumption estimates, discounting and advanced concessions to optimize terms and conditions on their Azure contracts.
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Microsoft customers renewing or making new Azure deals risk losing leverage and wasting investment when they underprepare in two key areas: accurately estimating consumption and understanding their Azure deal’s unique variables
At renewal time, Azure customers often find it difficult to obtain the same discounts they previously received. Sourcing, procurement and vendor management (SPVM) leaders often neglect to apply appropriate negotiation strategies in order to achieve additional discounts.
SPVM leaders calculating the total cost of their Azure deals often fail to include key costs outside the financial commitment itself, such as the costs of migration, support, training and price adjustments.
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