ClearEdge | Maintenance Cost Reduction

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. 

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