A desire to innovate was hampered by a continuous overspend on unused products, and no knowledge of how to negotiate with a leading vendor.
Specialist insights and recommendations to optimize their environment and establish a roadmap helped our client take control and led to a successful negotiation.
Cost savings of over €500k per year, clarity over their environment, and the right technology to boost future plans and innovation.
When we partnered with leading healthcare provider, Amarant, they had an ambitious vision for the company and wanted to ensure their technology supported their plans. Our role was to optimize their licensing environment, and prepare them for a successful negotiation with their vendor.
We quickly realized that the IT team had very little understanding of their current contract and no clear oversight of their licensing position. And they were massively overpaying for licenses they weren’t using. This is a major problem and one we encounter frequently, as companies overcompensate in a bid to avoid a damaging discovery of non-compliance. Not only that, but Amarant was paying for the best-in-class productivity suite, while still using an antiquated on-premise product.
They needed help from an independent partner who could shine a light on their current environment, and negotiate the best terms for their future innovation plans.
Launching our optimization strategy early gave us the upper hand in negotiations. We started by analyzing Amarant’s current spend, and comparing that with their actual usage. We identified that over the last 3 years, they had spent almost €750k more than they should have. This formed a strong basis for our contract negotiations.
We then established a roadmap for the following 6 years to ensure that our ideal investment scenario was aligned with all internal stakeholder priorities, and reflected Amarant’s future plans, rather than the vendor’s own goals.
Our negotiation with the vendor was intense, with Blackbelt experts able to take control of discussions, using insights and experience to push back on the original options suggested. We achieved the optimal result for Amarant, generating significant savings of over €500k per year and ensuring they are well equipped to achieve their vision for the company. The relationship between Amarant and their vendor remains strong, thanks to a fair and well-reasoned negotiation.
“Without Blackbelt’s insights, we’d still be paying 6 figures every year for unused licenses our vendor assured us we needed. The cost savings Blackbelt has generated are having a hugely positive impact on our future innovation plans.”