The Key to Getting Your Workday Negotiations Right

In this episode of “Insights for IT Negotiations,” hosts John Belden and Kylie Chisholm from UpperEdge discuss critical considerations for getting your Workday negotiations right. They are joined by UpperEdge’s Workday expert advisors, Erwann Couesbot and Jeff Lazarto, who share insights from a recent webinar on Workday deals.

Key Points for Better Workday Negotiations

1. Understanding Workday Licensing:

• Workday uses a Full-Service Equivalent (FSE) model to calculate user counts. Different worker categories (full-time, part-time, contingent) are factored into the FSE count, which impacts pricing.

2. Critical Financial and Commercial Terms:

• FSE Count: It’s essential to accurately categorize workers to optimize FSE counts and pricing.
• Line-Item Pricing: Workday’s pricing varies by product SKU, so understanding line item costs is crucial.
• Payment Ramp: Negotiating a payment schedule that aligns with your deployment timeline can save costs.
• Renewal Term Protections: Ensure your renewal terms protect against price hikes.

3. Negotiation Strategies:

• Manufacturing Leverage: Create leverage by understanding the risks you are undertaking and having a clear negotiation strategy. For example, highlight risks like Generative AI’s impact on workforce needs to negotiate better terms.
• Competitive Leverage: Use existing relationships with other vendors (like Oracle or SAP) as a bargaining chip.

4. Generative AI and Workday:

• While Workday is integrating AI features, it’s not leading with AI in its market strategy. Clients should be aware of potential compliance risks and negotiate protections accordingly.

Additional Insights for Workday Negotiations

• Payment Schedules vs. Subscription Fee Schedules: Understanding the difference can prevent unexpected cost increases at renewal time.
• Competitive Landscape: Workday’s main competitors are Oracle and SAP, especially in the finance and HR sectors.
• Client Preparedness: Before negotiating, clients should have a detailed plan and internal alignment to avoid being outmaneuvered by Workday’s sales teams.

Conclusion

This episode emphasizes the importance of understanding Workday’s pricing and licensing models, preparing thoroughly for negotiations, and leveraging competitive and internal dynamics to achieve favorable terms.

For a deeper dive into Workday negotiation strategies, download our on-demand webinar, hosted by Erwann and Jeff. Watch the full webinar here.