For Sourcing & Vendor Management Professionals

Do Your Software Contracts Permit External Use?

Buyers Should Act Now To Avoid Excessive, Unexpected Charges For Basic Third-Party Access To Their Business Systems

by Duncan Jones, November 12, 2009

Many IT sourcing managers are facing unexpected additional software costs because they have used their enterprise systems to work more closely with third parties, only to find that their license agreements include unreasonable extra charges for, or even . . .

For Sourcing & Vendor Management Professionals

Refresher Course: Hiring VARs

Most Enterprises Have Experience With Value-Added Resellers, But Updating The Selection Process Can Bring More Value For Clients

by Duncan Jones, Caroline Roeleveld-Hoekendijk, November 5, 2009

Most enterprises use value-added resellers (VARs), but in our research we found that clients are dissatisfied with their resellers' value for money. Sourcing managers should work out what they are spending with resellers across all product and business . . .

For Sourcing & Vendor Management Professionals

Enterprises Should Push Supplier Networks To Deliver Interoperability

The Plethora Of Discrete Networks Detracts From ePurchasing's Value

by Duncan Jones, July 30, 2009

Enterprises use supplier networks to trade electronically with their suppliers, but they find that insufficient cooperation between rivals limits potential progress. Chief purchasing officers (CPOs) and their ePurchasing program managers struggle to get . . .

For Sourcing & Vendor Management Professionals

TechRadar™ For Sourcing & Vendor Management Professionals: ePurchasing, Q3 2009

Services Procurement And EIPP Are Hottest, Supplier Performance And Automated Spend Analysis Show Promise, But Supplier Portals Start To Decline

by Patrick M. Connaughton, Duncan Jones, July 22, 2009

Forrester has used its TechRadar™ on the various subcategories of ePurchasing software to identify which offer the most reliable and fastest-growing sources of business value. We found that eProcurement and eSourcing give the best ROI, with electronic . . .

For Sourcing & Vendor Management Professionals

Yes We Can (Cut Our Software Maintenance Costs)

IT Sourcing Executives Can Take Advantage Of Increasing Flexibility To Obtain The Cost Savings They Need

by Duncan Jones, May 8, 2009

It's one of the unwritten rules of software that maintenance costs only go up — never down. But we used to say that about house prices too. Today, software vendors are coming under increasing pressure from customers to cut maintenance bills, but the vendors . . .

For Sourcing & Vendor Management Professionals

The Real Problem Of Counting Virtual Licenses

Software Sourcing Managers Should Understand The Licensing Impact Of Their Colleagues' Plans For Server Virtualization

by Duncan Jones, April 23, 2009

Software license agreements that vendors created and buyers accepted years ago fail to make clear how definitions of hardware-based metrics such as per-processor apply to today's virtualized data centers. Enterprises, hoping to cut costs by improving . . .

For Sourcing & Vendor Management Professionals

The Forrester Wave™: eSourcing, Q1 2009

Ariba, Emptoris, And Oracle E-Business Suite Are The Leading Tools For Enterprises Wanting To Improve Their Online Strategic Sourcing

by Duncan Jones, March 23, 2009

In Forrester's 54-criteria evaluation of eSourcing vendors, we found that Ariba, Emptoris, and Oracle E-Business Suite are Leaders, due to their support for global program management and advanced sourcing techniques. Companies looking to implement online . . .

For Sourcing & Vendor Management Professionals

Check Your Software License Agreement For These Common Flaws

Technology-Savvy Buyers Can Spot Contract Gaps That Lawyers Will Miss

by Duncan Jones, December 5, 2008

When working with individual clients, Forrester sees many software license agreements that are not fit for the intended purpose. Some common problems: the contracts fail to explain clearly what the buyer has to measure to stay compliant, place unreasonable . . .

For Sourcing & Vendor Management Professionals

Case Study: Maintenance Services Company Uses Supplier Self-Service To Cut AP Costs

by Duncan Jones, November 19, 2008

A $3 billion maintenance services company faced many challenges processing six million invoices per year, most from small-business subcontractors. The accounts payable (AP) director knew that full e-invoicing was impractical for this large, technology-limited . . .

For Sourcing & Vendor Management Professionals

Best Practices: Invoice-To-Pay Process Automation

by Duncan Jones, November 19, 2008

Accounts payable electronic invoice presentment and processing (AP-EIPP) applications help companies automate their invoice-to-pay (I2P) processes. Inefficient manual processing can cost $20 or more per invoice, but companies can cut this to $5 or less . . .

For Sourcing & Vendor Management Professionals

Case Study: Global Pharmaceutical Company Cuts AP Cost-Per-Invoice By Half

Ariba Helps The Company Build On Its eProcurement Foundation

by Duncan Jones, November 19, 2008

A global pharmaceutical company processes nearly two million invoices per year through a handful of shared service centers (SSCs), but was suffering with a 20-day backlog. The company was already using Ariba's eProcurement product so it decided to use . . .

For Sourcing & Vendor Management Professionals

Understand Multiplexing Or Face Unexpected Software License Charges

Vendors' Policies On Indirect Use Surprise Unwary Customers

by Duncan Jones, November 14, 2008

IT sourcing and vendor management professionals increasingly run into disputes with their application and database vendors over how to count users in their complex and diversely integrated architectures. The vendors' basic rationale is reasonable — they . . .

For Technology Product Management & Marketing Professionals

The Five Qualities Of Good Software Pricing

An Evaluation Framework To Test How Potential Buyers Will React To Your Software Licensing Model

by Duncan Jones, July 23, 2008

Poorly designed software pricing can limit sales opportunities, extend sales cycles, restrict upselling, and reduce maintenance renewals. Forrester has identified five qualities of good software pricing from talking with hundreds of software sourcing . . .

For Sourcing & Vendor Management Professionals

Microsoft Simplifies Its Volume Licensing

Most Companies With Select Agreements Will Benefit By Upgrading To Select Plus

by Duncan Jones, July 3, 2008

Microsoft announced Select Plus on July 1, 2008 — a significant improvement to its volume licensing program. Available to customers starting in October 2008, Select Plus enables customers to execute purchases at the business-unit level yet still get the . . .

For Sourcing & Vendor Management Professionals

Successfully Negotiating Microsoft Licensing Agreements

by Duncan Jones, Christopher Voce, June 20, 2008

Negotiations with Microsoft can be a daunting challenge for a sourcing and vendor management team. Not only is it likely to represent a major financial commitment, but Microsoft's unique terminology, complex pricing structure, and rapidly changing product . . .

For Sourcing & Vendor Management Professionals

The Forrester Wave™: AP-EIPP, Q2 2008

Basware Leads For Products That Streamline The Invoice-To-Pay Process, But Other Vendors Also Have Strong Offerings

by Duncan Jones, June 18, 2008

In Forrester's 78-criteria evaluation of accounts payable electronic invoice presentment and payment (AP-EIPP) vendors, we found that Basware leads the pack, closely followed by Ariba, JPMorgan Xign, and 170 Systems. All have good invoice management capabilities . . .

For Sourcing & Vendor Management Professionals

Case Study: A Large European Bank And Oracle Agree A Unique Contract Amendment

by Duncan Jones, February 29, 2008

A large European bank was considering adopting Oracle as its enterprisewide database choice, but its corporate legal policy for software purchases conflicted with Oracle's terms and conditions. Forrester cannot divulge details, for client confidentiality . . .

For Sourcing & Vendor Management Professionals

Case Study: A Public-Sector Purchasing Organization Signs An Enterprise Agreement

by Duncan Jones, February 29, 2008

This public-sector procurement organization wanted to create a central contract with Oracle that would cover all the business units (BUs) in its region. It needed to achieve substantial, long-term cost savings for the BUs without limiting their flexibility . . .

For Sourcing & Vendor Management Professionals

Best Practices: Negotiating With Oracle

How To Get A Good Deal On Licenses And Maintenance, Be They For Database, Middleware, Or Application Software

by Duncan Jones, February 29, 2008

Oracle's pricing is necessarily complex because of its wide portfolio. Regulatory restrictions, coupled with its size, have caused it to adopt highly centralized approval processes that can make contract negotiations protracted and frustrating. Yet IT . . .

For Sourcing & Vendor Management Professionals

Software Buyers Should Consider Business-Metric-Based Licenses — But Cautiously

Buyers Can Achieve Cost Savings — If They Can Avoid The Pitfalls

by Duncan Jones, November 14, 2007

Many IT sourcing professionals negotiating contracts for new software purchases will receive offers of licenses priced by business metrics, such as turnover or employee numbers. Vendors are introducing these types of metric because traditional licenses . . .

For Business Process & Applications Professionals

The EIPP Market Is Ripe For Consolidation

Demand For Applications To Streamline Buy-Side Invoice-To-Pay Processes Will Continue To Grow Rapidly

by Duncan Jones, October 22, 2007

Most invoices start life in order management applications and end up in accounts payable (AP) products, yet almost all must first become paper, processed by expensive, slow, and error-prone human beings. AP Electronic Invoice Presentment and Processing . . .

For Business Process & Applications Professionals

Insights On Oracle's Strategy From Charles Phillips

Forrester's Take On Its Recent Meetings With Oracle's President

by Duncan Jones, George Lawrie, R "Ray" Wang, Roy C. Wildeman, September 14, 2007

Forrester met recently with Oracle President Charles E. Phillips to discuss the firm's direction and overall product strategy, with particular focus on its now broad collection of business applications. Not surprisingly, Oracle is particularly keen to . . .

For Sourcing & Vendor Management Professionals

Effective SAP Pricing And Licensing Negotiation

Firms Must Look Beyond Discounts And Address Long-Term Flexibility

by Duncan Jones, September 12, 2007

Sourcing and vendor management professionals involved in negotiations with SAP feel caught between their managers' expectations and the vendor's dominant negotiating position. However, vendor managers can win significant savings and protect their enterprise's . . .

For Business Process & Applications Professionals

Application Vendor Selection: Making The Process Work For You

by Paul D. Hamerman, Duncan Jones, July 20, 2007

Selecting an enterprise applications vendor is a systematic process of elimination. A variety of tools are available to bring about a sound decision, but tradeoffs often occur between the level of diligence and the length of the decision process. Forrester . . .

For Sourcing & Vendor Management Professionals

Avoid The Hidden Costs Of Shelfware

Software Vendor Discounts Aren't Always As Good A Deal As They Seem

by Duncan Jones, April 5, 2007

Many clients complain to Forrester about expensive software maintenance and unsympathetic vendors but recognize that they are in a weak negotiation position. Whether it's application software or infrastructure, both problems often have a common cause . . .