Published: 21 February 2024
Summary
These five steps will help sourcing, procurement and vendor management leaders validate their IBM software and services portfolio and engage IT and business stakeholders to create a three-year BAU forecast necessary to analyze IBM’s bottom-line offers during ELA negotiations.
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Overview
Key Findings
Sourcing, procurement and vendor management (SPVM) leaders struggle to analyze IBM’s multiyear prepay bottom-line offer (BLO) enterprise license agreements (ELAs) because these bundled proposals provide no itemization of product pricing for an effective cost analysis.
SPVM leaders often fail to accurately forecast the demand for IBM-specific hardware, software and services demand and the requirements necessary to create the business-as-usual (BAU) forecast, which causes inaccurate analyses of IBM proposals.
SPVM leaders often do not use the correct financial analysis model when comparing the BAU to IBM’s BLO. This results in inaccurate cost gap analyses between the BAU and IBM’s BLO. Thus,
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