Engagement — VMware Global Audit and Enterprise License Agreement
Situation – VMware notified client of pending audit across client’s global license footprint. Audit lasted 10 months. Client audit exposure exceeded $350K. Client purchased at discount rates, never having an ELA over 11 year relationship with Vmware, while purchasing from 22 different VAR’s over the term. Secure internal client department teams to leverage true global spend, including client’s Pune, India R&D org – traditionally an outlier in enabling access to their spend.
Our Activities Included —
Secured Tony Scott, VMware CIO as supplier executive sponsor to up-level relationship, securing visibility and access to negotiation points and investment in client account
Created global Enterprise License Agreement (ELA) strategy and token consumption model for client
Socialized deal size and revenue target expectations for VMware account team up to Sales SVP
Leveraged VMware’s desire for a FY end deal by initially securing fully negotiated 3-year ELA pricing, and then requiring VMware waive all client global audit findings.
Benchmarked industry comparisons via Gartner data and other data services
Challenge – Negotiate from an audit condition, in highly factionalized technology acquisition environment, while seeking to waive $350K audit exposure. Change management in client’s purchasing practice , as global teams historically purchased locally.
Results – $750K cost savings delivered on $1.45M spend. 34% reduction returned from $2.2M baseline. Negotiated, signed, closed EA renewal on time. Client rewarded performance by expanding InFor500 Sourcing services to their R&D organization, including the Pune, India offshore location.