Client Background
A $20B US-based consumer goods company was navigating a ServiceNow renewal while undergoing changes in its business structure. ServiceNow remained a strategic platform, but leadership needed to mitigate shelfware risk while maintaining flexibility for future investment.
The Challenge
The client’s existing ServiceNow agreement included renewal pricing protections that were contingent on a 100 percent renewal of existing products and volumes. At the same time, the organization had confirmed business cases for an enterprise-wide ITSM deployment, an upgrade of existing HRSD licensing, and early adoption of Now Assist.
Leadership required a strategy that would allow the organization to leverage ServiceNow’s interest in net-new capabilities while preserving the ability to walk away with a competitive, right-sized renewal profile if business priorities shifted.
UpperEdge’s Approach
UpperEdge provided a negotiation framework designed to keep ServiceNow focused on the client’s immediate requirements while maintaining optionality for future growth. This approach included:
- Gathering current utilization and requirements to ensure go-forward product commitments aligned with expected value and business needs
- Providing guidance on pricing expectations and commercial transparency at the product level
- Provided iterative pricing and commercial terms assessments based on updated proposals submitted by ServiceNow
- Ensuring the final licensing mix eliminated shelfware and supported transformation goals without overcommitting or overspending
The Results
Through the renewal process, the client secured a best-in-class commercial construct that balanced flexibility, protection, and long-term value, including:
- More than $375K in savings over five years on the client’s strategic offer, while reducing the right-sized baseline offer by $3.15M over 5 years
- Highly compelling long-term price protections
- Reduced add-on rates tied to future growth
- Price certainty for future products of interest
- The ability to de-couple bundled products into individual components at predefined rates
Planning your next ServiceNow move?
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