ServiceNow is no longer just an IT helpdesk vendor. Recognizing the opportunity for growing attach rates by having customers add other ServiceNow solutions, the company has been transitioning to a platform provider that enables digital transformation and better customer experience. This means ServiceNow will be pushing for adoption of multiple products while pulling in user volume commitments ahead of actual need.
As they strive to become a key strategic partner, current and potential customers must prepare for price increases, aggressive sales tactics, and more challenging negotiations.
Understanding ServiceNow’s goals at the negotiation table prevents you from leaving agreement flexibility, potential investment opportunities, and significant dollars on the table. Our years of experience, deep set of relevant benchmarks, and proven methodologies to deliver favorable results empower you to achieve deeply discounted upfront pricing, downstream price protections, and flexibility.
We empower companies
Capabilities
We have a proven track record of helping organizations effectively build leverage and achieve best-in-class pricing, terms, and go-forward relationships.
- Provide sourcing and contract negotiation support during ServiceNow engagements
- Support the negotiation of ServiceNow master ordering agreements and order forms along with other applicable contractual documentation
- Specialize in net-new competitive assessments, renewal negotiations, and renegotiations that include mid-term product expansion
- Access to a deep set of price benchmarks across all ServiceNow products (ITSM, ITOM, ITBM, HR Service Delivery, CSM…etc.) allowing us to quickly ascertain the competitiveness of your current and proposed ServiceNow pricing
- Identify relevant negotiation levers to use with ServiceNow to achieve the optimal outcome
Approach
- Benchmark and measure competitive nature of current and proposed ServiceNow pricing on a product-by-product basis
- Provide an assessment of your current ServiceNow product utilization with an emphasis on spend analysis and go-forward optimization opportunities
- Identify potential financial exposure tied to overutilization and non-compliance
- Conduct evaluation of your future demand resulting in a quantified potential financial investment with ServiceNow
- Develop go-forward negotiation strategy with ServiceNow to most effectively navigate the discussions with ServiceNow to achieve the most optimal outcome
- Ensure negotiation is well scripted through tailored written deliverables supported by timely coaching and commentary
- Review contractual documentation to confirm negotiated terms are accurately captured and articulated
Results
- Improved pricing with significant upfront discounting
- Savings on average of over $1M with ServiceNow
- Meaningful price protections ensuring downstream price certainty
- Established volume pricing to ensure price improvement as spend increases
- Flexible agreement structure that provides the ability to phase adoption and associated monetary commitments over the term
- Better understanding of ServiceNow master ordering agreement, order form and contractual documentation provisions, pricing, and product subscription models, methodologies, and use rights
- Improved executive-level relationship and governance with ServiceNow
Recent Blogs
- The Playbook All Cloud Vendors Work From
- ServiceNow Q1 2018: Winning the Upsell
- SaaS Matters: Key Caveats for SaaS Contracting
- ServiceNow FY 17 Q4 Earnings – Key Takeaways
Next Steps
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