MAINTENANCE COST REDUCTION

OVERVIEW

Recurring maintenance fees provide the single most profitable revenue stream for large incumbent IT suppliers. Many clients view this spend as inevitable and non-negotiable, though it is neither. 

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The Maintenance Cost Reduction program helps clients identify, evaluate and re-negotiate their hardware and software maintenance agreements, resulting in improved discount rates on renewals and a streamlined IT inventory. The program relies on the ClearEdge Contract Analysis Methodology, in conjunction with real-time market analytics on thousands of similar maintenance deals.

APPROACH

The program includes the following three areas of service: 

DISCOVERY

  • Collect, inspect maintenance contracts

  • Verify usage

  • Identify redundancies

  • Identify maintenance pricing gaps

  • Develop baseline pricing targets

  • Develop agenda

STRATEGY

  • Analyze inventory & eliminate redundancies

  • Identify critical systems

  • Assess leverage

  • Redefine pricing & contract terms

  • Develop “Plan Bs”

  • Develop strategic message 

EXECUTION

  • Schedule negotiation with supplier

  • Align internal resources 

  • Convey strategic message

  • Renegotiate terms with supplier