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PHONE HOTLINE: +1 (866) 530-ISAM (4726)E-MAIL: info@isamgroup.com
CONTACT US
ORACLE NEGOTIATION SUCCESS

How ISAM Helped a Government Agency Reduce Software Costs by 50%

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INDUSTRY: State Government
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PRODUCT: Transportation
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SIZE: 15,000
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ESTABLISHED: 2013
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SAM TOOL USED: ServiceNow, SCCM
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VENDOR FOCUS: Oracle
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KPIS: Cost savings, hardware capacity growth, compliance, and license optimization
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ISAM SERVICES UTILIZED: License Optimization

The Problem

The agency expressed concerns about their software support costs with Oracle. They were in an annual support plan and wanted to explore options for reducing licenses, costs, or both. Oracle’s approach made it difficult because repricing was inevitable in reduction efforts. Additionally, with the shift in technology, Oracle’s presence at the agency was decreasing, potentially weakening the agency’s negotiation standpoint.

Objectives

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Establish initial compliance with licensing agreements.
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Conduct cost benchmarking to identify potential savings.
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Explore and offer alternative solutions to optimize software assets.
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Identify and present reduction opportunities.
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Implement measures to ensure long-term cost savings and efficiency gains.

The Solution

We were able to create an effective license position with Oracle by aligning the agency’s unused software with Oracle CSIs and canceling any that were no longer needed. With this information, we were able to negotiate further reductions with Oracle, resulting in significant cost savings for the agency. By utilizing this approach, we were able to not only ensure initial compliance but also provide reduction opportunities within the current contract period while ensuring long-term savings.

Solution Approach

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ISAM gathered data and created an Effective License Position (ELP).
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The ELP was used by ISAM to align licenses to Oracle contract items.
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ISAM proposed license cancellations that would not impact contract obligations.
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Engaged in productive conversations with Oracle.

Key Insights

Effective license position (ELP) is crucial for establishing initial compliance and identifying unused licenses, resulting in significant cost savings for companies.
Negotiating with vendors such as Oracle requires an in-depth understanding of licensing agreements and effective communication to achieve cost reductions.
Cloud migration provides a technology boost and additional benefits, leading to long-term cost savings and efficiency gains.

Results

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ACHIEVED AN INITIAL 25% REDUCTION IN SOFTWARE COSTS.

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IDENTIFIED AND REMOVED UNUSED AND OUTDATED LICENSES FROM SERVICE.

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GAINED LONG-TERM COST REDUCTIONS EXCEEDING 50% ON A  YEARLY BASIS.

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BROKERED CONVERSATIONS TO IMPROVE THE VENDOR RELATIONSHIP.

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CLOUD MIGRATION PROVIDED A TECHNOLOGY BOOST AND ADDITIONAL BENEFITS.

Real solutions, real stories, real success.

I was very happy with my ISAM experience and only have good things to say.

Agency Deputy Director and Chief Information Officer