TIBCO is one of those software vendors where spend is almost always large for the enterprise customer. If you’re using TIBCO, chances are you’re paying a lot of money.
It is not uncommon to see a $100M+ list price on TIBCO deals. Thankfully, the vendor will offer substantial discounting to get their pricing into a more reasonable place. But competitive pressures are creating new room for savings opportunity for TIBCO transactions. Here are some insights into what you can expect for an upcoming purchase or renewal.
TIBCO Pricing – Will Competitive Forces Open the Door for a Better Deal?
Before big data and data virtualization were a thing, there was TIBCO. Founded in 1997, the vendor has emerged as a global market leader providing business integration software to integrate, manage and monitor enterprise applications and information delivery. That translates into the ability to leverage real-time data across the enterprise IT ecosystem to make faster, smarter decisions.
The rise of big data, data virtualization and business intelligence has made TIBCO’s sandbox more competitive in recent years. Challengers range from old guard enterprise software vendors that have acquired competitive capabilities to newcomers – most notably, MuleSoft.
TIBCO is losing a number of clients to MuleSoft and that’s making the vendor nervous. Reasons include:
Price…obviously. MuleSoft usually comes in cheaper than TIBCO – not always, but often.
Easy transition capabilities. MuleSoft has created a “To TIBCO” integration that accelerates the move from TIBCO software to MuleSoft.
Cloud maturity. MuleSoft’s cloud offerings are more mature than TIBCO’s. TIBCO was a bit late to the party in creating a cloud solution and it shows. MuleSoft can tout a much more robust cloud solution and they are thought to be the leader in the ESB space.
NOTE: NPI is vendor agnostic, we are not advocating clients to move to MuleSoft. Rather, this information is intended to provide competitive insight when working on TIBCO deals.
TIBCO pricing and negotiation flexibility are being impacted by MuleSoft and other competitive forces. While TIBCO list pricing still delivers sticker shock, their willingness to offer super high discounts is growing. One area where we typically don’t see flexibility is maintenance – they tend to hold the line on that part of the equation.
Negotiating a Best-in-Class Deal with TIBCO
NPI has seen a number of TIBCO deals lately. While TIBCO has demonstrated it is willing to heavily discount its offerings, customers must still make their case – especially those who already have a large TIBCO footprint and are averse to switching to more cost-competitive solutions.
The single most effective way to do this is performing price benchmark analysis on your TIBCO purchase or renewal. NPI can help you determine if TIBCO is quoting a fair price, establish best-in-class price and discount targets for your unique requirements, and help with negotiation messaging. As the competitive landscape evolves, it’s important to stay on top of which levers are most effective in helping you negotiate TIBCO pricing that’s at or better than market.
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