NPI has seen a slight uptick in the number of enterprise clients considering Google’s G-Suite, which for most is a move away from Microsoft’s O365 platform. As this is usually a big dollar item, it’s extremely important to optimize this first transaction with Google. Why? Because this first purchase is typically when customers have the most leverage and the pricing they finalize sets the stage for a price that will be recurring annually for many years.
Here are a few insights gleaned from our recent experience with clients switching from Microsoft O365 to Google G-Suite:
• BOGO is big. Offers are following a BOGO format where customers are getting two years at no cost followed by two years with a cost. This appears to be a means to encourage the switch and buy out a customer’s remaining commitment with Microsoft.
• Longer contracts. Six-year contracts have also been offered. Enterprise customers generally opt for the G-Suite Enterprise subscription which lists for $25/user/month.
• Google isn’t emphasizing discounts, but the opportunity is there. While Google does not always lead with a discount on year 3 and 4 costs, customers should expect a discount. Additionally, there are Restricted Use options for subsets of employees that may only use a subset of functionality – for example, email only. Customers will be purchasing the same suite but be given a steeper discount to reflect the reduced usage. Again, Google may not overtly indicate this option exists so put the effort in to understand how usage will vary across your employee base.
• Anticipate migration spend. Customers should also expect to need some one-time migration software. NPI has most often seen solutions from CloudManager be included. This typically won’t be a huge cost but customers should be aware of it.
• Keep channel partner interactions competitive. Google will typically point prospects towards a preferred channel partner. It may not feel as though you have an option when it comes to which partner, but the reality is you do have choices. With that in mind, keep these interactions competitive and conduct IT price benchmark analysis on all transactions to ensure fair market pricing targets and terms are achieved. The partner is the one usually providing the services in support of the switch which can be well into the six figures.
• Demand cost transparency. NPI has seen many initial proposals offered with a minimal amount of detail and transparency. This can be problematic as there are often consulting costs associated with moving from Microsoft’s platform to G-Suite. For this reason, customers should evaluate costs just as they would for any sizable consulting engagement and push for line item transparency into rates, resources, time and expenses (including ancillary items like T&E).
RELATED CONTENT
• Blog: How to Avoid Overspending on IT Purchases
• Blog: The End of O365 E4 – What Are Your Options?
• Bulletin: How to Negotiate and Spend Smarter with Amazon Web Services (AWS)
• NPI Service: IT Price Benchmark Analysis & Negotiation Intel
• NPI Service: Enterprise License Agreement Optimization Consulting