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The SmartSpend™ blog is a resource to help readers save money on IT and Telecom purchases, brought to you by NPI’s consultants and vendor-specific subject matter experts.

The Latest IT Sourcing News

 

  • What the Future of Cloud Pricing Could Look Like Matt West
    Director of Telecommunication Services, NPI
    03.24.16

    One of the toughest aspects of navigating cloud pricing is that there’s no standard – it’s still the Wild West. This also presents an opportunity for enterprises to shape the future of cloud pricing and subscription models. First, let’s take a look at where we are today with cloud subscription and fee models. Some IaaS...

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  • Will you need to upgrade your System Center Configuration Manager environment to support Microsoft Windows 10? Daniel Brewster
    Director of Client Services - Microsoft, NPI
    03.22.16

    With Windows 10, Microsoft has moved to a SaaS-style update strategy, meaning updates will be issued on a more frequent basis. This is good news for some customers, yet could force them to update their System Center Configuration Manager environment to support new Windows 10 features. Since the Windows 10 launch in July 2015, Microsoft...

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  • Update – Postalized Pricing for Ethernet Access Has Arrived Matt West
    Director of Telecommunication Services, NPI
    03.21.16

    NPI has been asking for and predicting the coming of postalized ethernet pricing since early 2015. We are now beginning to see it in the marketplace. What is postalized pricing? In telecom speak, to “postalize” means to structure prices so they are not distance sensitive. For example, an enterprise that has more than 100 domestic...

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  • Is Oracle Playing Fair in the Cloud? Let’s Hope Not Chris Vicknair
    Director of Client Services, NPI
    03.16.16

    It’s not a secret that cloud computing is the future of IT. Some companies are doing well in the cloud (Microsoft, Google and Salesforce…). But others haven’t quite figure out how to make it work (HP’s enterprise offering, Helion, for example). Oracle is in on the game as well. Oracle CEO, Mark Hurd, in an...

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  • Using Oracle and VMware? An Audit May Be on the Horizon Jeff Muscarella
    Partner, IT and Telecommunications, NPI
    02.25.16

    Will you be audited by Oracle in 2016? If you’re also a VMware customer (which many companies are), the answer could be yes. Oracle has become more aggressive in its auditing pursuits – specifically towards those customers running Oracle’s database in conjunction with VMware’s virtualization software. NPI has seen an uptick in audit activity and...

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  • How Do You Decide Whether to Purchase Microsoft Client Access License Suites vs. Individual CAL Licenses? Daniel Brewster
    Director of Client Services - Microsoft, NPI
    02.15.16

    Microsoft learned a long time ago that it was easier to increase its market share for a particular product by bundling that product into a suite. Microsoft Office 1.0 included Word 1.1, Excel 2.0, and PowerPoint 2.0 and was first available in 1990. The suite offering enable Microsoft to more efficiently compete against products like...

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  • Microsoft Increases Device and User Minimum for Enterprise Agreements (EA) Jeff Muscarella
    Partner, IT and Telecommunications, NPI
    02.11.16

    At the beginning of February, Microsoft announced that it will increase the minimum EA commitment for commercial customers from 250 users or devices to 500. Effective July 1, 2016, the change applies to customers signing new Enterprise Enrollments or Enterprise Subscription Enrollments. Those commercial customers within the 250 to 499 user/device range will be guided...

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  • What You Need to Know Before Your Next Juniper Purchase or Renewal Gregg Spivack
    Director of Client Services, NPI
    11.13.15

    Routers, switches, SDN and network management – it may not be exciting, but networking technology is still the heartbeat of enterprise IT. It’s also an area of pricing commoditization among vendors, including Juniper Networks. Juniper’s pricing continues to be very competitive. But that doesn’t mean its customers aren’t overpaying, overbuying and signing sub-optimal agreement terms....

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  • Should I Upgrade to Office 2016? Joshua Osborne
    Director of Client Services - Microsoft, NPI
    11.06.15

    Despite being one of Microsoft’s flagship products, Office has been losing its luster and excitement over the years. I mean, how many times can new fonts, art, graphics and other creative features be the most exciting updates to the newest version? It’s no wonder customers are approaching an upgrade to Office 2016 with a yawn....

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  • What is a Microsoft License Statement? Why do you need one? Daniel Brewster
    Director of Client Services - Microsoft
    10.22.15

    Have you ever asked your Microsoft account team to help you understand what licenses you own? If so, you may have received a spreadsheet listing the contents of your current Select or Enterprise Agreement. While that information is useful, it’s not complete. It only includes data on what you have bought during the current agreement...

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  • Colocation: Retail or Wholesale? Rich Staas
    Director of Client Services, NPI
    09.14.15

    When looking for a colocation (colo) provider for your datacenter needs, there are several things to consider when making the choice. One decision is whether to go with a retail or wholesale provider. Both allow you to rent space for servers and other computing hardware, but their business models and pricing/contracting behavior are very different....

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  • Offshore Development – Assign the Right Tasks, Pay the Right Price Chris Vicknair
    Director of Client Services, NPI
    08.26.15

    So you’ve decided to outsource and/or hire offshore IT developers. The decision was the “easy” part. Now comes the search, research and selection of a vendor. There are lots of things to consider and important decisions to be made. Often, the first thought is, “I’ll use one of the big 3 (Accenture, Deloitte, Atos) and...

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  • SAM Needs to be Watched Jeff Muscarella
    Partner, IT and Telecommunications, NPI
    08.19.15

    Software Asset Management has been with us for well over two decades now. Large companies spend millions of dollars a year on SAM teams, tools and ongoing training. So how is it that fewer than 20 percent of the companies we work with actually have useful deployment data when it comes to a license audit...

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  • Microsoft Server & Cloud Enrollment (SCE): Navigating the Licensing Shift from EAP, ECI and EWA Joshua Osborne
    Director of Client Services – Microsoft, NPI
    07.24.15

    In Microsoft’s continued efforts to consolidate agreement offerings and give customers incentives to commit to Microsoft’s product portfolio, they announced the Server & Cloud Enrollment (SCE). The announcement came back in Q4 of 2013 (you can read more in a separate blog post here), but it’s only now that many companies are facing this change...

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  • MPSA – Where Microsoft Licensing is Going Joshua Osborne
    Director of Client Services - Microsoft, NPI
    07.20.15

    Microsoft licensing is a touchy subject. Many customers’ thoughts or comments on the topic aren’t too positive (to be nice). Even Microsoft employees and channels struggle to fully understand the changing offerings and product use rights across the product portfolio. It’s so complex that Microsoft employs hundreds of staff solely dedicated to product licensing. Will...

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  • Healthcare IT Sourcing – Optimizing the Epic EHR Purchase Rich Staas
    Director of Client Services, NPI
    06.24.15

    Bigger isn’t always better. It’s a truism acknowledged by Epic Systems, a reputable provider of EHR and other software solutions for the healthcare industry. The vendor is renowned for its high-value products and services, and the loyalty it receives from a smaller (as compared to Cerner), but devoted (and growing…) customer base. It’s also known...

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  • Buying Through a Reseller? What You Need to Know About Registered Deals Rich Staas
    Director of Client Services, NPI
    05.29.15

    Buying IT through a reseller has its advantages – and it also has its pitfalls, one of which is the registered deal. Here’s how it works… Many IT manufacturers, whether hardware or software, only sell through channel partners. When that occurs, the first reseller contacted by a customer will register the deal with the manufacturer....

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  • Are you considering a CLM (Contract Lifecycle Management) system? Gregg Spivack
    Director of Client Services, NPI
    05.27.15

    We’re in the business of optimizing the business terms of contracts here at NPI – so when our clients bring us in to review a contract lifecycle management (CLM) purchase or renewal, we come to the table with a unique perspective. The success of these CLM initiatives goes well beyond getting the best price or...

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  • IT Sourcing 101: Why is Pricing So Opaque? Matt West
    Director of Telecommunication Services, NPI
    05.20.15

    IT and telecom suppliers like to keep the details behind pricing as opaque as possible. The more they can bundle, the less the customer can compare pricing to competitors. That helps the vendor at selection time, but it’s even more beneficial down the road. Take the following example – an actual quote. It includes 20,000...

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  • Considerations When Evaluating Workday or Renewing Your Agreement Gregg Spivack
    Director of Client Services, NPI
    03.24.15

    As Workday approaches $7B in annual revenue, it’s obvious that this nice cloud ERP/HRM story has become an IT stalwart. One sign of this maturation is the growing number of renewals NPI has reviewed – in the early days, we were just reviewing new purchases. While each contract situation is unique, following some basic tenets...

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  • Break Down the Elements of Cloud Cost Control Rich Staas
    Director of Client Services, NPI
    03.19.15

    As enterprise applications and infrastructure services move to the cloud, it’s important that companies take a different view of the IT purchase. Many of the traditional sourcing considerations that apply to on-premise solutions change with the cloud. Before entering an agreement with a vendor, companies need to understand and analyze potential hurdles to realizing the...

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  • AT&T Replaced by Apple on the Dow Jones – The Times, They Are A-Changing…. Matt West
    Director of Telecommunication Services, NPI
    03.17.15

    I’m not a Wall Street expert, but I can't imagine that there is anything good about being booted from the S&P DOW Jones industrial average. Yet this is exactly what happened to AT&T on March 6th. The S&P DOW Jones Indices, a subsidiary of McGraw Hill Financial, announced that it would replace AT&T with Apple...

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  • Microsoft’s New Strategy Creates New Licensing and Contracting Challenges for Enterprise Customers Jeff Muscarella
    Partner, IT and Telecommunications, NPI
    02.12.15

    Cloud-first. Mobility-first. Device-agnostic. These are the imperatives that are driving business and innovation strategy at Microsoft today. They’re also driving big changes to Microsoft’s licensing and contracting practices, and enterprise customers are feeling the impact. The gap between Microsoft’s vision and the reality of its core enterprise customers is still wide. The majority of these...

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  • Per-User Windows Licensing Will Soon Be Available to Microsoft Enterprise Customers – What You Need to Know Now Forrest Silverman
    Director of Client Services, NPI
    11.18.14

    Microsoft recently announced Enterprise Cloud Suite (ECS) – a subscription-based, per-user licensing option for its most popular productivity services. They include Windows and Office (on-premise) as well as Windows Server, Exchange and SharePoint (on-premise or cloud). One very important piece of news embedded in this announcement was the introduction of the User Subscription License (USL)...

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  • BYOD Reimbursements – Are You Paying Too Much? Matt West
    Director of Telecommunication Services, NPI
    10.23.14

    According to a recent report from the Yankee Group, the growth of the BYOD is slowing and may have already peaked. The percentage of enterprises with 1,000+ employees that allow BYOD topped out at 81 percent in Q2 2012 and has steadily declined since. The economics of BYOD have also shifted since 2012, especially those...

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  • Salesforce.com and Mobile Healthcare – Get Ready! Rich Staas
    Healthcare, Salesforce.com
    10.22.14

    Earlier this year, Salesforce.com officially ventured into the healthcare industry through a partnership with Philips. The alliance between the world’s top CRM company and a long-time leader in the healthcare technology sector came as a surprise to many. But dig a bit deeper and the partnership is indicative of the numerous transformations and convergences happening...

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  • Navigating the Risks of a Microsoft Enterprise Agreement: Software Assurance Jeff Muscarella
    EVP of IT and Telecom Division, NPI
    10.09.14

    Remember when it didn't take a rocket scientist to navigate a Microsoft Enterprise Agreement? Times certainly have changed. What used to be fairly straightforward perpetual licensing became considerably more complex when Microsoft began adding “strings” to its software assurance (SA) maintenance model. As a result, the task of figuring out whether it makes financial sense...

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  • Tips for Working With Your Vendor to Cut Hardware and Software Maintenance Costs Kevin Davis
    Director, IT Delivery, NPI
    10.08.14

    Some of the maintenance renewals I review for clients blow my mind. Too often, large ($1M+) support renewals for hardware seem out of line with common sense in terms of value given for price paid, or don’t clearly identify which hardware is covered, or include hardware that is no longer used. If this situation sounds...

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  • What You Can Learn from Monday’s Microsoft Azure Outage Forrest Silverman
    Director of Client Services, NPI
    08.21.14

    What happens when your cloud service provider suffers an outage? The question was on more than a few minds this Monday when Microsoft’s Azure cloud computing service experienced a global outage that lasted approximately five hours. If you’re an Azure customer, or are considering migrating to Microsoft’s cloud services, here are a few things to...

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  • How Will You Take Advantage of a More Competitive Telecom Landscape? Matt West
    Director of Telecommunication Services, NPI
    07.09.14

    If you’re not paying attention to the shake-up in the telecom industry, it’s time to tune in. Here are the highlights: Japan's Softbank wants to buy T-Mobile and roll it into Sprint; AT&T is buying Direct TV, while Comcast and Time Warner Cable want to merge; Level(3) just announced its bid to buy TW Telecom;...

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  • 5 Questions to Ask Before You Sign an Oracle Unlimited License Agreement Gregg Spivack
    Director of Client Services, NPI
    06.16.14

    Attention Oracle customers – are you getting ready to sign an Unlimited License Agreement (ULA) for the first time, or renew an existing one? While the ULA is ideal for some companies, there are risks to consider. Not every company needs or will benefit from a ULA, yet overspending is endemic to customers that pursue...

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  • How Can I Cut My SAP Costs? Jon Winsett,
    CEO, NPI
    05.29.14

    “How can I cut my SAP costs?” It’s a question we hear routinely, and one we expect to hear more of in the coming months. SAP has done a lot to enhance its capabilities. This includes a hyper focus on cloud capabilities, as well as the development and expansion of its HANA data and analytics...

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  • How IBM Passport Advantage Works Rich Staas
    Director of Client Services, NPI
    05.21.14

    IT vendors have long been criticized for the complexity of their licensing agreements and pricing – especially by large enterprises that have to manage large vendor footprints across their organization. In response, some vendors have created enterprise-friendly programs and agreements designed to make purchasing and license management easier and less costly. For IBM, this comes...

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  • Reseller Negotiations – What You Need to Know about Registered Deals Rich Staas
    Director of Client Services, NPI
    02.28.14

    If you’ve bought hardware lately, there’s a good chance you’ve purchased it through a reseller. Buying through a reseller has its advantages, but it also adds another layer of complexity to the process. In some cases, it challenges the sourcing best practices many buyers use for direct-from-vendor purchases. For example, many companies' procurement policies require...

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  • AT&T Sponsored Data and Net Neutrality Matt West
    Director of Telecommunication Services, NPI
    02.13.14

    On January 6, AT&T announced a new way for eligible 4G customers to enjoy mobile content and apps over their wireless network without impacting their monthly wireless data plan. In many ways, the program is the equivalent of toll-free dialing for the subscriber’s data plan. Content or application providers that are willing to "sponsor" their...

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  • Avoiding Professional Services Contract Negotiation Pitfalls Rich Staas
    Director of Client Services, NPI
    01.31.14

    If you’re like most enterprises, you enter into several IT professional services contracts each year. Whether you’re purchasing project implementation services, bespoke solution development, upgrade services or staff augmentation, there are several pitfalls to be aware of before signing your next agreement. Here’s some advice: Service rates are always negotiable. As with almost any IT...

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  • Pros and Cons: Digging into Amazon Web Services Kevin Davis
    IT Account Manager, NPI
    01.29.14

    Most enterprises are aware of Amazon Web Services (AWS), which has hundreds of thousands of customers. But many are unaware of just how extensive AWS’ offerings are across the broad spectrum of IT capabilities. AWS is a wholesaler that delivers compute cycles from their cloud data centers at a very low price. They offer services...

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  • It Saves to Know Your Support Options Gregg Spivack
    Director of Client Services, NPI
    01.22.14

    Alternative software and hardware support options are becoming more mainstream. If you haven’t considered this option, you could be missing out on substantial cost savings. Third-party support is the typical term used for support provided by companies other than the OEMs (original equipment manufacturers) and publishers. The options range from hybrid offerings that combine support...

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  • Will T-Mobile Gain Ground in the Enterprise? Maybe. Matt West
    Director of Telecom Services, NPI
    11.18.13

    When T-Mobile decided to bet the farm on its “un-carrier” strategy, critics wondered if it was “too little, too late” to turn around the wireless giant’s declining business. Early this month, the critics got their answer. By all accounts, T-Mobile is on a tear. On November 5, the mobile provider reported it added 648,000 net...

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  • New Microsoft EA Licensing Program – Why Customers Will Pay More Jon Winsett
    CEO, NPI
    10.16.13

    On November 10, 2013, Microsoft will launch its new SCE licensing program – a three-year enrollment under the Microsoft Enterprise Agreement (EA) – which will soon replace two of Microsoft’s most popular EA licensing programs, ECI and EAP. If you’re a Microsoft EA customer currently under ECI or EAP, get ready! Some customers may pay...

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