ServiceNow Pricing & Negotiation
The Truth About ServiceNow Pricing
How much does ServiceNow cost? ServiceNow uses value-based pricing, meaning price is set based on how much value they believe you, the customer, places on the solution (how badly you need/want it). This causes a market dynamic where the price of ServiceNow products vary significantly from customer to customer. The greater your need, and the less time you have to shop around, the more ServiceNow can charge.
The good news: ServiceNow quotes are not set in stone. You can negotiate ServiceNow pricing and contract terms to make them lean in your favor. There are nine key elements deal leaders need to gain proficiency in to drive deal success. These nine areas are emphasized in ClearEdge's negotiation framework, the Leverage Management Maturity Model (LM3):
Early Warning System
Risk Assessment & Inspection
Forecast & Modeling
Deal Timeline Development
Deal Option Development
Do we have an organized approach to starting deals on time?
Do we understand all ServiceNow contract and business risks?
How much ServiceNow product do we need, and when do we need it?
Have we documented a calendar of ServiceNow deal-making activities?
How might ServiceNow pricing strategy and motivations affect my deal?
What ServiceNow deal alternatives or "Plan Bs" do we have?
What information will we protect, and what will we share?
Are executives informed, aligned and participating on the deal?
Are we controlling the story with credible and consistent messages?
Mitigate Risk & Reduce ServiceNow Cost
When hampered by limited resources and a lack of time to plan, companies can fail to carry out effective buying campaigns against ServiceNow. ClearEdge offers clients direct, hands-on leadership throughout their deal cycle to build leverage, achieve organization alignment, and control ServiceNow cost in all major IT categories.
Our ServiceNow services augment client IT procurement organizations and help professionals create stronger, more productive ServiceNow relationships. Transaction ServiceNow services have the option to provide direction in deal set-up, team alignment, communication, and strategy, supported by real-time market intelligence and deal analysis.
ServiceNow Cost Approach
ClearEdge’s ServiceNow services are designed to be light touch and high impact. Instead of disrupting your team, we will augment it, providing the acumen, data, and advice needed to execute your most strategic IT engagements.
Consolidate ServiceNow license usage data
Aggregate key ServiceNow contracts for review
Risk & Inspection
Identify key ServiceNow pricing and contractual risks in agreements
Build financial demand models to optimize ServiceNow costs
Develop ServiceNow deal alternatives
Analyze ServiceNow deal options in multi-year financial models
Align stakeholders on ServiceNow deal objectives
Outline ServiceNow negotiation strengths and weaknesses
Create deal plan and strategic messaging
Execute ServiceNow deal strategy
Iterate models through rounds of ServiceNow negotiation
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Need Our Assistance?
If you need assistance with a ServiceNow licensing purchase or renewal, contact us today.