5 Things Observed When Optimizing Recent CA Transactions

By Gregg Spivack

Director of Client Services, NPI

November 24, 2015

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Artwork Courtesy of @iStock.com/alexskopje

NPI regularly helps clients optimize purchases and renewals with CA Technologies, covering both mainframe and distributed environments. While every client situation is unique, here are a few takeaways.

1. Competitive take-out situations still drive aggressive pricing behavior even for deals that are in the low six figures. Customers should go beyond standard discounting expectations and focus on the recurring spend with the incumbent when determining whether it’s financially compelling to make a switch.

2. Whether you’re buying new or expanding an existing footprint, CA will try to bundle in 'value-add' products that deliver capabilities beyond what you are trying to buy/replace. Customers need to push for transparency that allows apples-to-apples comparisons, and for the contract to clearly outline per-product costs – especially if additional add-on license purchases are expected.

3. You’re essentially dealing with two different sales teams for new purchases and maintenance/renewals. CA CPMs (Customer Portfolio Managers) own the maintenance relationship and the renewal. The Account Director is charged with driving new business. Unlike many companies where sales can often heavily influence the support team, CA has empowered CPMs considerably and provides stringent renewal targets that effectively make CPMs a separate sales group.

4. Often more important than the final costs in any executed agreement are the clauses governing your renewal. CA is open to playing the long game as they know the 'sky is the limit' once you have a renewal that is not governed by a contract. While some publishers are known never to go beyond three to five percent increases (whether governed by the contract or not), CA has demonstrated this is not the case with their business.

5. CA can and will get aggressive if a client is open to renewing a current agreement early (ideally near a quarter-end). In NPI's estimation, the CPM still has a cement floor based on their target. But customers should consider renewal timeframes especially if there is shelfware that could be removed, new solutions to buy or expansion of existing ones. If your negotiation goals include some give and take with CA, then renewing early is a conversation that can drive sizable contract improvement.