Blog When AWS Goes Down, Procurement’s Leverage Goes Up Oct 22, 2025AWS, Cloud Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend. On October 20, 2025, AWS suffered a serious global disruption impacting the US-East-1 region. Services across dozens of applications – from Snapchat and Venmo to Fortnite – were degraded or unavailable for hours. The root cause: a DNS resolution issue in AWS’s internal network of load-balancer health monitoring, causing error cascades for many upstream services. This event offers a powerful reminder to sourcing/procurement/IT leaders: resilience matters — not just for uptime, but for contractual positioning, cost management, and negotiating leverage. Below are key takeaways. Resilience Matters for Cost and Contracts Your cloud spend isn’t just about the sticker price. It’s about what you will get when things do go wrong. The AWS outage underscores how even top-tier cloud providers can experience “failure” windows that ripple across business-critical operations. For enterprises, this means the contract with your cloud vendor isn’t just a procurement document: it is a risk-mitigation tool. If functions stop, the contract should define what happens next. Key questions clients should audit: What are the SLA availability guarantees? What happens in terms of service credits or compensation if the SLA is breached? Are business continuity/disaster-recovery clauses built in (or at least referenced)? Does the pricing reflect “all-in” availability, or is it the lowest-cost option that assumes “some risk of downtime”? You goal is to evaluate beyond the hourly/usage cost. Factor in what an outage costs you, and whether your contract gives you recourse. Leverage Negotiation to Reduce Risk and Costs Major outages = moment of increased supplier vulnerability and thus negotiating leverage for you. When the supplier has just demonstrated that even their “best” infrastructure isn’t infallible, the customer has stronger grounds to ask for better terms. At the contract renewal or new-purchase point, strongly consider: Asking for improved SLAs: higher availability thresholds, faster recovery times. Demanding better compensation: larger service credits, or other remedies. Negotiating deeper discounts or improved pricing tiers in exchange for the risk you’re assuming (e.g.: “single-region reliance” risk). Benchmark your terms and pricing against market standards. Remember: AWS’s position is entrenched, and it rarely budges on SLAs or downtime credits. But outages change the dynamic. Even if improvements are often a non-starter, this is the moment to push and see what’s possible. Multi-Cloud and Hybrid Strategies If your architecture is built on a single cloud provider, this outage should raise serious alarm bells. The root “single-vendor/single-region” dependency is the source of large risk—both operational (when the supplier falters) and commercial (weak negotiation position). A multi-cloud or hybrid cloud strategy can improve resilience (failover across providers or regions) and create competitive pricing opportunities. Use this recent AWS event as the impetus for a portfolio review of all cloud/spend items and competitive bids to test other providers. Optimize for Recovery and Redundancy Cost optimization isn’t just about reducing spend. It’s about reducing risk and ensuring continuity. The AWS outage reinforces that cost savings gained by skimping on disaster-recovery, failover, backup are false economy. When something goes wrong, the indirect costs (lost revenue, brand damage, remediation) massively outweigh incremental savings. Customers should achieve clarity around how their vendor supports disaster-recovery or continuity (are DR-sites in different regions, zones) and what the failover mechanisms are (and how they’re tested and quantified). Following that, it’s important to understand what pricing/contract terms are tied to those resilience components (can you negotiate better terms for DR services?). Tactical Notes for IT Procurement AWS occupies a deeply entrenched position in the enterprise cloud ecosystem. Their brand and scale give many companies a high switching cost. Switching clouds entirely may be impractical—but that doesn’t mean you’re powerless. The recent outage is your leverage moment. Use it! Push for better terms, credits, stricter SLAs, more flexibility (region-failover, multi-region architecture). What may have been a non-starter during your last AWS deal negotiation could be leverage right now. Don’t accept “lowest cost single‐region” arrangements and expect zero risk. Single-cloud reliance is the root of all evil: it hurts your operations and your negotiating table. Frame the conversation with senior stakeholders as: “We experienced an event like this recently; if our vendor cannot support us appropriately, we must explore alternatives.” Embed resilience and contractual flexibility as part of your procurement scorecard (not just price). In short, turn this moment into opportunity. When the next outage happens, you want your contract, your architecture and your terms to be ready. Interested in learning more? NPI’s cloud cost and contract optimization experts can help. Contact us. Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend.
Blog Microsoft Copilot Licensing Changes: What You Need to Know (and the Big Gotcha) Oct 13, 2025Microsoft Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend. Microsoft is once again shaking up its Copilot licensing model—effective October 10, 2025—and while the changes bring some new benefits, there’s also a costly catch IT sourcing leaders need to watch closely. The headline: Microsoft is retiring several separate Copilot SKUs (like Copilot for Sales, Service, and Finance, which cost up to $600/year) and rolling those role-based AI features into the standard Microsoft 365 Copilot license ($360/year). That’s great news for companies that haven’t yet invested in those role-specific licenses. But for those who did? There’s no refund for recent purchases of the retired SKUs. Transitions can only occur at renewal. What’s Changing 1. Role-Based Features Now Included Retired SKUs: Copilot for Sales, Service, Finance These features are now bundled into Microsoft 365 Copilot at $360/year Important: No refunds for recently purchased role-based licenses; transitions only at renewal 2. Copilot Studio Enhancements Organizations can build custom Copilot agents Lite version: Embedded in Microsoft 365 Copilot for simple builds Full version: Available in Copilot Studio for advanced development 3. Consumption Model Changes “Messages” renamed to “Credits” Licensed M365 Copilot users: no usage charges Charges apply for non-licensed users, independent bots, and consumer-facing scenarios The “Gotcha” That Procurement Needs to Manage The lack of refunds for retired SKUs creates real cost exposure. Customers who purchased role-based Copilot licenses recently are left paying for functionality that will soon be standard in the cheaper $360 Copilot SKU. Microsoft is also unlikely to renegotiate contracts mid-term—which means sourcing teams need to plan carefully for renewals and annual reconciliations. Three Guidance Points for Procurement Use new SKUs for all net-new Copilot licenses. Don’t buy additional quantities under the soon-to-be-retired SKUs. Make sure any new Copilot licenses are purchased under the updated SKUs. Renegotiate pricing of the new SKUs. Use renewals as a leverage point to offset the sunk costs of older, more expensive licenses. Microsoft won’t hand you savings—you’ll need to negotiate them. Replace old SKUs at annual reconciliation if eligible. If your existing Copilot licenses are reduction-eligible, use your anniversary/true-up to swap them out for the new, lower-cost SKUs. Bottom Line Microsoft’s Copilot changes are a reminder that licensing shifts can create as much risk as opportunity. Enterprises that don’t carefully plan transitions may end up paying for redundant or overpriced licenses. With no refunds available, procurement leaders need to be proactive—protecting their organizations by ensuring new purchases use the right SKUs, negotiating renewal pricing aggressively, and leveraging true-ups to realign cost and value. Looking for more clarity around Microsoft’s recent licensing and pricing changes? Contact us – our Microsoft licensing experts can answer your questions. Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend.
Whitepaper SAP Clarity Playbook: How Smart Enterprises Are Taking Back Control Oct 6, 2025SAP Download the Playbook Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend. SAP thrives on complexity. It’s time to take control. SAP’s commercial model isn’t just complicated—it’s engineered to benefit the seller. From hidden cost escalators to confusing RISE bundles and licensing traps like Digital Access, even the most sophisticated enterprise IT buyers can get blindsided. The SAP Clarity Playbook is built for IT procurement and sourcing leaders who want to regain leverage, reduce cost, and eliminate risk. It’s a practical, no-fluff guide to understanding SAP’s commercial tactics—and countering them with structure, timing, and data. How RISE reshapes your estate—and why it’s often more lock-in than liberation The license metrics SAP favors (and why they’re rarely in your favor) Digital Access demystified: spotting risk before it becomes cost Price protections that actually protect—especially in years 3, 4, and 5 A 360° clarity checklist to guide smarter renewals and negotiations Download our playbook to elevate your SAP cost management strategy. Download the Playbook Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend.
Webinars SIG WEBINAR: Winning the ServiceNow Renewal Game – The Insider’s Playbook ServiceNow Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend. ServiceNow’s world is shifting fast — from AI-driven innovations to evolving SKUs and bundled offerings that can make renewals feel like a moving target. This session cuts through the noise to give you a clear, insider’s view of what’s changing, what’s at stake, and how to turn this year’s renewal into an opportunity instead of a headache. You’ll hear what’s really happening in the market, the missteps even seasoned buyers make, and the negotiation plays that are driving measurable results right now. Whether you’re a few months out from renewal or already in the thick of it, you’ll walk away with fresh tactics you can put into motion immediately. Here's what you'll learn: The latest on ServiceNow’s product shifts, pricing moves, and AI-first initiatives — and what they mean for your deal Real-world intel from recent ServiceNow negotiations (and the leverage points most buyers overlook) Proven strategies to cut cost, reduce risk, and ensure your ServiceNow investment delivers on business priorities Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend.
Webinars Don’t Get Played by SAP – The Truth About Pricing, Licensing, and What You Can Control SAP Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend. The Truth About Pricing, Licensing, and What You Can Control SAP is betting that you don’t understand how its licensing, pricing, and sales tactics work. In fact, its entire commercial model thrives on complexity—and enterprise customers are paying the price. In this no-fluff webinar, NPI’s SAP licensing experts decode the tactics, unravel the confusion, and spotlight the specific actions that Fortune 500 IT procurement teams must take to bring clarity—and control—back to their SAP strategy. You’ll learn: What’s motivating and driving SAP’s behavior at the deal table right now How SAP is engineering deals (and customer relationships) to maximize revenue Licensing and compliance traps to avoid Smart moves to optimize your SAP estate and strengthen leverage ahead of your next purchase or renewal Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend.
Blog How to Mitigate IT Vendor Lock-in Risk in the Enterprise Sep 12, 2025Audit Defense, Contract Negotiation, Cost Optimization, Price Benchmarking, SaaS Management Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend. Vendor lock-in doesn’t happen all at once. It accumulates, contract by contract, renewal by renewal, until switching becomes more expensive than staying. For many enterprises, that moment has already arrived. A single vendor’s tools may now span critical infrastructure, operations, data, and user experience. Contracts are multi-year. Usage is global. Dependencies are baked in. For IT and procurement leaders, the question is no longer how to avoid lock-in, but how to manage it strategically. Lock-in isn’t always bad; it can yield volume discounts, roadmap influence, and operational consistency. But without the right controls in place, it creates budget strain, compliance risk, and a loss of leverage. Lock-in can be mitigated. With the right commercial terms, license visibility, and vendor strategies, enterprises can regain control, reduce long-term cost exposure, and make smarter technology decisions. What is IT Vendor Lock-in? IT vendor lock-in occurs when a business becomes so reliant on a specific vendor’s products, services, or ecosystem that switching to a competitor would be disruptive, cost-prohibitive, or contractually impractical. Lock-in can take many forms, such as technical, contractual, financial, and operational. And while it may begin with a well-intentioned technology deployment, it often evolves into a long-term dependency with limited strategic flexibility. In a cloud-first, SaaS-heavy environment, vendor lock-in is a built-in aspect of many vendors’ commercial models. From exclusive licensing terms to integrated platforms that discourage modular replacements, vendors are increasingly incentivized to create friction for customers exploring alternative options. What are the Risks Associated With Vendor Lock-in? Limited Flexibility Vendor lock-in restricts an enterprise’s ability to adapt its technology stack as business needs evolve. Without the option to pivot to new or more cost-effective solutions, organizations lose agility and must align their plans to the vendor’s roadmap, even when it diverges from their own. High Switching Costs Deep technical integration, data migration, retraining staff, and re-negotiating enterprise agreements all drive up the cost of change. In many cases, these switching costs outweigh the potential benefits of moving to a new provider, making lock-in the default, even when dissatisfaction exists. Limited Innovation When vendors face little competition, innovation can stagnate. Enterprises locked into a single solution may miss out on best-of-breed features, emerging technologies, or disruptive pricing models offered by competing providers. Contractual Obligations Long-term contracts, volume commitments, and rigid licensing terms often make it financially punitive to scale down, pause, or exit a vendor relationship. Without proactive negotiation, enterprises may find themselves locked into terms that no longer reflect business reality. What Causes IT Vendor Lock-in? IT vendor lock-in isn’t the result of a single decision, it’s the outcome of accumulated business, technical, and contractual choices over time. The shift to cloud and SaaS models has only accelerated this dynamic. Vendors have become highly skilled at embedding themselves into a customer’s technology fabric in ways that maximize retention and limit flexibility. In many cases, lock-in results from licensing structures, bundled pricing, volume commitments, and ambiguous product usage rights–all of which create friction when companies attempt to pivot. Simultaneously, internal dependencies such as integrations, workflows, or vendor-trained staff make it challenging to unwind even moderately entangled relationships. The Top Culprits Behind IT Vendor Lock-in in the Enterprise Expanding Footprint Across Multiple Parts of the Business Large vendors often extend their reach across departments, functions, and regions with bundled product suites and enterprise-wide agreements. While this expansion may improve standardization and pricing in the short term, it makes internal coordination difficult when a business unit wants to switch tools. Changing even a single product can impact master agreement pricing, volume tiers, and bundled discounts, effectively disincentivizing change. Subscription Models and Contract Terms SaaS licensing has shifted most vendor relationships into multi-year commitments with strict volume and usage terms. Many agreements offer little flexibility to scale down mid-term, and clauses related to renewal price caps, downgrade rights, and swap provisions are often missing or under-negotiated. As a result, enterprises are locked into agreements that no longer reflect their needs but remain difficult and expensive to exit. Compliance and Product Use Rights Some vendors maintain intentionally complex licensing rules and product use terms, which shift frequently and are difficult to interpret. These ambiguities open the door to compliance risks, which vendors can then use as leverage during negotiations. The threat of an audit, or a vendor’s ability to uncover usage gaps, can force enterprises to renew on unfavorable terms just to avoid penalties. Interdependencies Between Vendor Offerings Many enterprise vendors create interlocking product suites. For example, removing one service might break reporting or functionality that relies on a related product. In cloud environments, these interdependencies are often tenant-wide, meaning a business can’t segment usage or adoption without impacting the broader environment. This makes modular replacement nearly impossible without a full re-architecture. Implementation and Integration The deeper a vendor’s solution is embedded in enterprise systems and processes, the more difficult it is to unwind. Some platforms require months of integration effort, custom configurations, and user training. Once the investment is made, even a better-performing or more cost-effective alternative often loses out to inertia and fear of disruption. Vendor-Specific Training and Certification Programs Also Contribute to Lock-in Organizations frequently hire staff with vendor-specific certifications, such as Salesforce developers, AWS architects, and Microsoft 365 admins, who become embedded in operational workflows. These internal skill sets, while valuable, create organizational bias toward retaining the incumbent vendor. Swapping platforms may require not just retraining, but also rebuilding entire operational models. Advice for Mitigating the Risks of IT Vendor Lock-in Avoiding vendor lock-in may no longer be realistic, but reducing its impact is. By taking deliberate steps to increase contract flexibility, improve visibility, and preserve leverage, IT and procurement teams can mitigate the most damaging effects of vendor dependency. Here are five proven strategies to help manage lock-in risk more effectively: 1. Optimize Commercial Terms for Flexibility The contract is your first line of defense. Work with legal, procurement, and vendor management teams to secure terms that provide room to pivot. This includes swap rights (allowing value from past purchases to be applied to newer, more useful solutions), license transfer rights across business units, and downgrade clauses for events like M&A or workforce reductions. Add pricing protections such as capped renewal increases and volume-based discount schedules to maintain predictability over time. 2. Reclaim, Reduce, and Realign SaaS Licenses Many enterprises overpay for unused or overpowered SaaS subscriptions. NPI frequently uncovers 10% to 25% in “toxic spend“, like licenses assigned but never used, or expensive tiers purchased when lighter versions would suffice. Regular license audits and entitlement reviews help identify optimization opportunities and avoid renewing unnecessary capacity. Explore how NPI’s SaaS License Optimization Assessments can help right-size your environment and reduce spend. 3. Where Possible, Keep Competitive Solutions in the Mix Maintaining small-scale deployments of alternative tools can help counteract lock-in. Even if not widely adopted, their presence provides negotiation leverage, puts pricing pressure on incumbents, and helps teams stay current on evolving capabilities in the market. This tactic also preserves optionality in case a shift becomes necessary in the future. 4. Consider a Multi-Vendor Cloud Strategy In the IaaS and PaaS space, spreading workloads across AWS, Azure, and Google Cloud can drive stronger pricing, better terms, and more resilience. Cloud providers respond to real competitive pressure when they know your organization is already working with others. They’re more likely to offer concessions and incentives. 5. Establish Regular IT Roadmap Checkpoints with Your Vendor Vendor lock-in risk increases when roadmap changes blindside the business. Build structured checkpoints into your vendor management cadence to assess how product or licensing changes will impact operations. Use these discussions to compare against competitors and gather intelligence ahead of renewals. NPI recommends aligning these reviews to budgeting and strategic planning cycles for maximum impact. Reduce the Risks of IT Vendor Lock-in with Vendor Risk Management Managing vendor lock-in is a strategic exercise in reclaiming financial, operational, and contractual leverage. When enterprises optimize contract terms, align licensing with usage, and apply market intelligence to negotiations, they reduce financial exposure and position themselves for better business outcomes. NPI partners with enterprise IT and procurement teams to do exactly that. Our services help clients mitigate vendor lock-in by improving contract flexibility, strengthening negotiation outcomes, and identifying license optimization opportunities across the software and cloud portfolio. Want to mitigate IT vendor lock-in without sacrificing performance? Contact NPI to explore how our vendor management and IT cost optimization services can help your organization reduce risk, recover spend, and regain strategic flexibility. Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend.
Blog Effective IT Cost Optimization Strategies for Sustainable Savings Sep 11, 2025Audit Defense, Contract Negotiation, Cost Optimization, Price Benchmarking, SaaS Management, Software Asset Management Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend. IT cost optimization goes well beyond traditional cost-cutting measures, emphasizing a strategic approach to align IT investments with your business objectives. By focusing on efficiency, innovation, and value creation, you can achieve sustainable cost reductions while driving business outcomes. Understanding IT Cost Optimization as a Strategic Discipline Overspending on IT resources is rampant and it may be costing you millions of dollars. Our research into actual spending shows that large organizations overpay for 89% of their IT purchases. Gartner estimates that 30% of SaaS spend is toxic, wasted on unused licenses and features that aren’t being used. Why? There are several key reasons. Pricing is wildly inconsistent. Licensing terms are convoluted. Vendors have lock-in leverage and highly trained sales teams that have access to data you don’t. As the volume and complexity of IT purchases increase, your IT cost optimization strategies become more important than ever. You need a strategic framework, discipline, and approach to keep spending in check. Strategic Frameworks for IT Cost Optimization IT cost optimization strategies should include a framework including: Assessing current IT costs: Understanding where and how IT funds are allocated. Setting clear objectives: Defining what cost optimization means for your organization, whether it’s reducing waste, improving efficiency, or reallocating resources. Engaging key stakeholders: Ensuring cross-departmental collaboration to align IT strategies with broader business goals. Leveraging technology: Utilizing tools and platforms to track and manage costs effectively. Expert guidance: Leveraging industry benchmarking and expertise to achieve best-in-class pricing. These steps create the necessary structure for identifying areas of opportunity and implementing impactful changes. Applying this framework consistently, enterprises have the foundation to optimize costs. For example, organizations deploying NPI solutions see between 15% and 25% savings on large IT purchases. Key Strategies for Effective IT Cost Optimization Deploying a few key strategies can help you better control costs and right-size your IT assets. Prioritizing High-Impact IT Investments IT cost optimization should start by focusing on your biggest investments that have the biggest impact on your business. By focusing your resources on these initiatives, you can ensure your IT spending directly supports your strategic goals. Cost optimization is not about reducing your capabilities, but it is about making sure you have the right IT solutions for your business at the lowest possible cost. Conducting a software license position assessment can identify significant opportunities for cost reductions and reduce potential liabilities. Many businesses find they have unallocated licenses that are adding to costs or they are paying for licenses with features many employees aren’t using. For example, does everyone in your organization need a Microsoft E5 license or can some employees do their job with a less-expensive E3 license? Cloud Cost Management and Optimization Cloud computing has reshaped IT infrastructure and offers flexibility and scalability. However, it also creates significant challenges in cost management. In 2024, it’s estimated that companies spent $805 billion, and that number is expected to double by 2028. Reigning in these costs takes more than just robust governance policies and real-time visibility into spending. You need to identify overprovisioned, underutilized, and redundant services to reduce expenses. You also need to audit your contracts well before renewal time to make sure they are right-sized and optimized for cost savings. Automation for Operational Cost Reduction Automation creates operational efficiencies and reduces your operating costs. Routine IT operations like backups, patch management, system monitoring, and resource allocation can lower labor (and cloud) expenses and reduce the risk of error. Software Licensing and Subscription Management The number of software licenses and subscriptions has grown dramatically. The average enterprise today has some 67 different applications installed. About 10% have more than 100. In addition, most departments have their own apps — as many as 200 or more companywide. App sprawl is real and costly. Migrating to the cloud and constantly changing SKUs and licensing types only adds to the complexity. Yet, the majority of companies say they do not have comprehensive visibility into all of their licenses and subscriptions. As your tech stack increases, it becomes harder to manage all of it and waste is rampant. A study of six million customers showed that nearly half of all software licenses were not even being used. That’s about half a billion dollars worth of waste. Audits can help you identify areas of waste and adjust contracts as necessary. Having comprehensive insight into your IT licenses is critical, especially if you are close to renewal time. Vendors are being more aggressive in launching software license audits. Multi-million-dollar claims are becoming the norm and putting your business at risk. Vendor and Contract Negotiation for Better Terms Engaging in competitive bidding helps you get better pricing, but you may still be getting a bad deal. How do we know? Vendors for large enterprises rarely have fixed rate cards and they know what businesses are willing to pay. On the other hand, you likely have limited or no insight into what others are paying for the same services. You need benchmarking intelligence, based on real-world negotiations, to understand what constitutes a fair price. At the same time, you need insight into the terms and conditions and where vendors are willing to negotiate. Such market intelligence can produce significant savings by maximizing your IT contract negotiation leverage. An NPI Vantage subscription allows you to submit purchase quotes to our SOC 2 certified portal and receive a custom Fair Market Value Report, vendor pricing strategy, and negotiation guidance. Clients have achieved savings like these: AWS: $86 million AT&T: $5 million Microsoft: $9 million IGM: $12 million Databricks: $10 million Cisco: $7 million VMware: $24 million SAP: $15 million Salesforce: $3 million Cross-functional Collaboration for Cost Optimization Success Maximizing your IT cost optimization strategies requires a collaborative approach involving multiple departments. Best practices include: Finance and IT Collaboration: Aligning budget planning with IT strategy to ensure resources are allocated effectively. Engaging End Users: Incorporating feedback from employees and customers to identify areas where IT investments can deliver the greatest value. Leadership Buy-In: Securing support from executive leadership to drive a culture of cost-conscious decision-making. Using Benchmarking and Performance Metrics to Track IT Cost Optimization As W. Edwards Deming famously said, “You can’t manage what you can’t measure.” Measuring the success of your IT cost optimization strategies is important for continuous improvement. Establishing KPIs as you negotiate and review your software licenses and contracts will help you understand where you are spending (and overspending) on IT assets. Comparing your performance against industry benchmarks can help you identify opportunities for further optimization. Managing Risks in IT Cost Optimization Efforts With IT cost optimization in mind, there are also risks. It can be easy to overemphasize your optimization efforts and limit access to some of the IT tools your employees need to work efficiently and innovate. It’s a constant balancing act to make sure your team has the tools they need without overspending. Companies also frequently underestimate the hidden costs, such as the cost of transitioning to new technologies, downtime, and training. Failing to manage these costs and changes in your organization can add up quickly. Organizations need to focus on the total cost of ownership (TCO) at the same time they are optimizing spend. How to Sustain IT Cost Optimization Over Time Sustaining IT cost optimization over time requires a culture of continuous improvement and careful management of ongoing expenses. You need to regularly evaluate your tech stack, employee’s needs, and new technology. Cost optimization also takes a holistic approach. Team members must understand how to implement cost-saving measures. Leveraging Strategic IT Cost Optimization with NPI Effective IT cost optimization is not a one-time initiative. It is an ongoing discipline that requires strategic planning, collaboration, and innovation. By implementing the right IT cost optimization strategies, you can achieve significant cost reductions while maintaining and enhancing your IT capabilities. Stop wasting money by overpaying for software licenses and IT infrastructure. We help large enterprises tackle their toughest IT sourcing challenges and make sure you’re not overpaying. Our 300+ IT consultants, analysts, and vendor-specific category experts have helped companies save billions of dollars on IT and telecom spend. Transaction-specific price benchmark analysis and negotiation intel for your IT purchases EA purchase and renewal optimization for Microsoft, SAP, Oracle, Salesforce, and more User-based SaaS license optimization across your tech stack License compliance, including license position assessments, and software license audit defense Telecom carrier contract optimization for cloud, mobile, wireline/network, and web conferencing NPI is not a reseller. Our only goal is to make sure you have the tools you need without overspending. We provide an objective and independent assessment that focuses on your best interest. Our proven methodology and expertise regularly deliver seven- and eight-figure cost savings for enterprise businesses. Eliminate IT overspending and maximize the effectiveness of your IT procurement team. Contact NPI today to learn how we can support your journey to smarter, more strategic IT spending. Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend.
Whitepaper Navigating Salesforce’s 2025 Licensing Shake-Up: A Guide for Procurement Sep 3, 2025Salesforce Download the Guide Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend. Insights Salesforce Customers Can’t Afford to Miss Salesforce renewals are entering uncharted territory. The 2025 licensing overhaul isn’t just another price hike—it’s a fundamental shift in how Salesforce monetizes its platform, with major implications for enterprise procurement. NPI’s latest guide, informed by intelligence from enterprise IT sourcing teams managing billions in Salesforce spend, breaks down what these changes mean for your renewals and how your peers are preparing. You’ll learn: The scope of Salesforce’s 2025 price increases (and how they compound over time)How Agentforce and consumption-based models increase risk and budget volatilityThe top renewal challenges enterprises face in ’25-‘26Which levers you can use to mitigate cost escalation and regain controlWhy early engagement and rigorous usage analysis are critical to optimizing your renewal outcome Get the full guide to benchmark your Salesforce strategy, uncover negotiation opportunities, and strengthen your leverage before it’s too late. Download the Guide Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend.
Webinars Maximizing Leverage in Salesforce Renewals Webinar: Negotiation Tactics Amid Licensing Changes Salesforce Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend. Salesforce renewals are high-stakes and high-cost for enterprise IT buyers—especially in light of recent licensing shifts and AI-driven pricing models. This session reveals the top leverage points in Salesforce negotiations, how to navigate complex enterprise license agreements, and what Salesforce’s evolving commercial model means for large enterprises. Here's what you'll learn: How Salesforce’s recent licensing and pricing changes are reshaping deals Renewal pitfalls and challenges to mitigate this deal cycle The top leverage points for negotiating better Salesforce renewal outcomes Join us for an expert-led session that will help you knock your next Salesforce renewal out of the park. Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend.
Blog Zscaler’s Price Increase: What Informed IT Buyers Are Doing to Stay Ahead Aug 22, 2025Contract Negotiation, Cost Optimization, Price Benchmarking Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend. Zscaler just kicked off its new fiscal year—and if you’re an enterprise IT buyer, there’s a good chance your next renewal will come with sticker shock. As of August 1, 2025, Zscaler has implemented substantial price increases across many of its core offerings. According to NPI’s pricing intelligence, some SKUs are now 35%+ more expensive than just a month ago. The increases are affecting both new and renewing customers, especially those making tier changes or adding advanced threat modules. If Zscaler is in your information security stack, here’s what you need to know—and what smart buyers are doing right now to mitigate impact. Where Zscaler’s Price Increases Are Happening Zscaler hasn’t made any public announcements about across-the-board price hikes—but recent transactions tell a different story. NPI is seeing steep increases in: Zscaler Internet Access (ZIA): Now quoted at $8–$12 per user/month Zscaler Private Access (ZPA): Ranging from $6–$10+ per user/month Add-ons like ZDX and Workload Communications: Especially expensive when bundled with new AI-driven and Zero Trust capabilities Buyers are encountering inflated quotes—often without clear justification. If you have a renewal or expansion coming up, these changes could hit your IT budget hard unless you tackle them proactively. How Informed IT Buyers Are Staying Ahead The good news? You still have leverage. Here’s how strategic buyers are managing Zscaler’s pricing surge: 1. Benchmark Early and Often Before any negotiation, validate your quote against current market pricing. Even small differences in per-user rates can snowball into major cost increases over multi-year deals. Identify line-item-level disparities and develop a strategy for closing the gaps. 2. Scrutinize Tier Changes Zscaler’s most advanced features are increasingly locked behind higher service tiers. While upgrades may seem like a security win, they’re often accompanied by automatic price jumps. Be sure the value justifies the cost—and push back if it doesn’t. 3. Push for Modular Flexibility Don’t accept bundled upgrades by default. Ask for à la carte access to specific features so you can avoid paying for capabilities your team doesn’t need. 4. Negotiate Multi-Year Price Protections If you’re signing a multi-year agreement, demand caps on annual increases. Without these protections, you’re exposed to compounding price hikes that can significantly inflate TCO. 5. Use Competitive Alternatives as Leverage Even if you plan to stick with Zscaler, having credible quotes from competitors strengthens your position. It shows the vendor you’re informed—and that they’ll have to earn your business. Final Thought: Don’t Let Zscaler Price Increases Steer the Deal Zscaler’s pricing moves may be aggressive, but that doesn’t mean you have to accept them at face value. The IT buyers who come out ahead will be those who: Start planning early Challenge assumptions Benchmark with precision Negotiate with confidence Need help building your negotiation strategy? NPI’s deal intelligence and advisory services can give you the data and guidance you need to reduce spend—without sacrificing capability. Contact us to learn how to align your next Zscaler deal with what the market is really paying. Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend.
Blog Microsoft Eliminates EA Price Tiers—Here’s What You Need to Know Aug 15, 2025Microsoft Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend. Microsoft just announced pricing changes that could have ripple effects on your IT budget. Starting November 1, 2025, the company will eliminate price tiers for online services purchased under both the Enterprise Agreement (EA) and the Microsoft Product & Services Agreement (MPSA). While Microsoft hasn’t disclosed exactly how this will be implemented, the implications for enterprise buyers are real—and potentially expensive. What’s Changing? Historically, Microsoft’s EA pricing has been structured around volume-based tiers—Levels A, B, C, and D. These levels rewarded larger customers with better per-user pricing. That structure is now going away for online services, and Microsoft hasn’t yet said what will replace it. Will all customers pay the current Level A rate? Will there be a new average price across tiers? It’s too soon to tell. But we’ve seen this move coming. Azure already uses flat pricing, and about a third of Microsoft’s Additional Online Products (AOPs) don’t vary by tier today. Microsoft 365 Copilot, for example, has been priced at $30 per user per month regardless of customer size since its launch. Why This Matters If you’re in the middle of an active EA, you’re protected, for now. Pricing for products you’ve already purchased is locked in for the rest of your agreement term. But that’s where it gets strategic. If there are new online services you’re considering deploying later in your term, it may be worth placing a small order now—even for a single license. That locks in today’s lower, tiered pricing for any future purchases of those new online services during the remainder of your term. A Quick Example Let’s say you’re a Level D customer evaluating Power Apps Premium for 5,000 users. Right now, you’d pay $17.60 per user per month—a total of $1,056,000 annually. If Microsoft eliminates tiers and you end up paying the Level A price of $20 per user, your annual cost jumps to $1.2 million. Even if Microsoft lands on a blended price—say, $18.65—the difference is still $63,000 more per year. It’s certainly less than a Level A price reset, but it’s also not insignificant, especially across multiple products and thousands of users. Should You Renew Early? Some Microsoft sellers may suggest you sign your next EA early to “lock in” lower pricing. At this point, NPI advises against this course of action. Microsoft has not fully explained what the new pricing will be. It’s unlikely that Microsoft would accommodate a true early renewal where your term start date is moved earlier – in fact, that is discouraged internally. But some sales teams may suggest that you leave the agreement dates intact, but hasten the actual signature of the agreement, suggesting that you can “beat” the price increase by signing now. NPI does not believe it makes sense to trade away precious demand planning and negotiation time in anticipation of unknown price increase. In most cases, rushing to sign early works in Microsoft’s favor—not yours. What You Should Do Now This change shouldn’t be a cause for panic—but it does mean you should plan smartly. Here’s what we recommend: Review your current EA to identify any Additional Online Products with tiered pricing that you may wish to purchase during the remainder of your EA term. Consider placing a small order now to lock in current pricing for those products. Ask Microsoft for clarity—how will they determine post-November pricing? Resist pressure to sign early until the new model is fully understood. Model the potential impact to understand where you’re most at risk of cost increases. Key Questions You May Be Asking About Microsoft’s Recent Pricing Changes When does this change take effect? November 1, 2025. Which products are affected? Online services under the EA and MPSA. Not all SKUs will be impacted—some already use flat pricing. Will pricing go up? It’s very likely, especially for Level C and D customers. A 3–5% increase is a reasonable expectation based on current tier differences. Should I place an order now? Yes—if you’re considering of the addition of new products that still use tiered pricing, even a small initial order can secure your current rate through the end of your EA. Should I sign my next EA early? Probably not. Without details from Microsoft, early renewal is a gamble that could reduce your leverage in negotiations. Final Thoughts Microsoft’s decision to eliminate price tiers for online services marks a clear shift in its pricing strategy—and one that could impact IT budgets. While the specifics are still unfolding, now is the time to prepare for the change. Want help evaluating your exposure and options? We can help – contact us to learn more about our Microsoft Cost and License Optimization services. Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend.
Blog How Microsoft’s SharePoint Security Failure Can Boost EA Renewal Leverage Aug 8, 2025Microsoft Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend. If you’re an IT procurement executive with a Microsoft Enterprise Agreement (EA) renewal on the horizon, July 2025 just handed you some unexpected leverage. The massive SharePoint security breach that compromised hundreds of large private and public sector organizations isn’t just a security story. It’s a procurement opportunity. What Actually Happened In July 2025, hackers exploited a zero-day vulnerability in Microsoft SharePoint Server, affecting organizations across government, healthcare, and private sectors. The timeline tells a concerning story: May 2025: Vulnerability first exposed at a security conference July 17: Active exploitation begins in the wild July 19: Microsoft acknowledges the problem July 21: Patches released Organizations were getting compromised for days before Microsoft confirmed there was a problem. If you were running internet-exposed SharePoint servers during this window, you should assume you were compromised, and simple patching is/was not enough to remediate the issue. The attackers were sophisticated enough to steal cryptographic keys, meaning they could maintain access even after patches were applied. The Good News (Sort Of) The vulnerability only affected on-premises SharePoint installations. SharePoint Online (the cloud version) was completely unaffected. If you’ve already migrated everything to Microsoft 365, you can breathe easier. But if you’re like many large enterprises still running on-premises SharePoint (we estimate 30% of our clients fall into this category), this incident should be a wake-up call. Why This Matters for Your Microsoft EA Renewal Here’s where it gets interesting from a procurement perspective. Microsoft is already positioning this breach as a reason why you need to spend more on their security tools. Expect your Microsoft account team to push harder for E5 licenses and the full Defender security suite. The irony is rich: Microsoft’s own security failure becomes their justification for selling you more security products. But interestingly, this situation actually gives you leverage you didn’t have before. Microsoft knows they dropped the ball, and that creates negotiating opportunities smart procurement teams shouldn’t ignore. Four Strategic Moves for Your Renewal 1. Challenge the Security Upsell When Microsoft pitches additional security tools as the solution, push back. Ask pointed questions: How would these tools have prevented this specific incident? What assurances can you provide that this won’t happen again? Why should we pay more for security when the breach originated from your platform? Don’t let them flip their security failure into your spending increase without getting real value in return. 2. Negotiate Migration Credits Still running SharePoint on-premises? Now’s the time to negotiate migration credits toward SharePoint Online. Microsoft wants everyone in the cloud anyway (it’s more profitable for them), and this incident gives you the perfect justification. But be smart about it. Cloud migration often costs more in the long run, so make sure any migration credits are substantial enough to offset those increased operational costs. 3. Review and Strengthen Liability Language This is big. This breach gives you concrete evidence to demand stronger contractual protections. While Microsoft typically resists liability changes, their current position is weaker than usual. 4. Diversify Your Risk (And Use It as Pricing Leverage) The breach highlights the risks of putting all your collaboration eggs in the Microsoft basket. Even if you’re not ready to diversify immediately, the threat of it can be powerful in negotiations. Use this as leverage to demand better pricing across your entire Microsoft estate. The Bigger Picture For years, Microsoft has operated from a position of strength, knowing that switching costs keep large enterprise customers locked in. But security breaches change that calculus. Risk tolerance varies significantly across different parts of large enterprise organizations. Your CISO is probably having very different conversations about Microsoft than they were six months ago. Your compliance team is asking new questions. Your board might be wondering about vendor concentration risk. These internal conversations are assets in your renewal negotiation. Don’t waste this opportunity. The SharePoint breach isn’t just a security incident; it’s a business event that shifts the negotiating landscape in your favor. Microsoft needs to rebuild trust, and that costs money. The question is whether that cost comes in the form of investments in better security practices, or discounts and concessions to retain customers who now have reasons to look elsewhere. Ready to turn this situation into leverage for your Microsoft EA renewal? NPI can help. The right procurement strategy can turn a security incident into significant savings and better contractual terms. Contact us. Share This Article Subscribe For Updates Uncover negotiation leverage and unlock savings across your IT spend.