When a company properly prepares for successful cloud negotiations, beyond ensuring they have the proper pricing and they don’t leave any dollars on the table, they need to make sure all the terms and conditions they need to ask for from their cloud vendors are pushed through and make their way into the contract. Based on best practices, experience, and knowledge of what each cloud vendor is willing and able to do, there is a list of asks that the client can feel confident their cloud vendor can say “yes” to.
However, a counter-perspective that is also important to focus on when preparing for your cloud negotiation is understanding what each cloud vendor is going to say “no” to. It’s just as empowering and impactful to know what the vendors will say no to when you also know how to leverage those no’s to get yes’s somewhere else in your negotiation.
When your organization is at the negotiation table with the cloud vendor, artfully leading your cloud vendor to say no to the following three asks can often help influence your ability to achieve other key terms and conditions you should have in your deal.
Refunds or credits for underutilization or no use
Your cloud vendor will say no to giving you a refund or credit for products or product features you did not use during the term of your subscription, often citing revenue recognition issues that prevent them from doing it.