Manufacturing & Engineering

Manufacturing & Industry: Global Engineering Organization to Realize Huge Microsoft Savings & Optimize Oracle ULA Position

 

This Livingstone Group client is a global engineering company, offering consultancy and technology solutions in a wide range of markets across the world. Headquartered in North America, it is a fast-growing organization with offices also located across EMEA and APAC, with tens of thousands of employees working across different departments.

The organization is a long-standing Livingstone customer, operating on a managed service agreement for its Microsoft estate and has also engaged on several projects including an optimization project for an Oracle ULA renewal.

 

Microsoft managed service

After the success of a traditional SAM managed service agreement, Livingstone began working on a more sophisticated managed service basis to meet the client’s further Microsoft needs. This included support with vendor management, stakeholder engagement and contract optimization. Livingstone’s services included:

  • Persona/User mapping – The Livingstone team built an accurate picture of client’s future technology profile through persona and user mapping. They could then advise on where optimized changes and cost-savings could be made, and in turn establish an optimized Bill of Materials to present to the vendor during negotiations.
  • Deep cloud knowledge – As a second-generation cloud customer, the client looked to Livingstone’s industry expertise and experience in negotiating complex Microsoft cloud contracts to secure an optimized contractual renewal on its cloud products.
  • Negotiation coaching – To improve the client’s vendor negotiation skills, Livingstone restructured the client’s negotiation teams and processes, drafted pre-prepared scripts, and coached executive stakeholders, including the CIO, on vendor engagement best practices to achieve an optimal outcome.
  • Global approach – The participation and support of the client’s global team is key to the ongoing success of the relationship as it enables Livingstone’s to access a holistic view of the client’s Microsoft estate and paint a more accurate picture of its requirements.

Through knowing where optimization changes could be made and by closely advising with negotiations, Livingstone was able to achieve a significant, multi-million-dollar discount for the client, in addition to earned discount, giving the client room and budget to invest in its continued growth and future technology requirements.

 

Oracle optimization

Similarly, the client had also engaged Livingstone to help it optimize the renewal of its Oracle ULA support stream in which a high level of redundancy was costing millions of dollars in overspend. To help the client get a better understanding of its Oracle estate to see where savings could be made and the contract optimized, Livingstone’s processes included:

  • Estate analysis – Livingstone reviewed the client’s licensing, entitlements and usage across all departments, creating huge amounts of data to see where licenses were being used or were redundant.
  • Contract restructuring – Estate analysis complete, Livingstone drafted an optimized contract, outlining where licenses could be reduced, if any needed to be increased for particular products, where concessions could be made during negotiations, and what an optimized, cost-savings renewal deal would look like.
  • Senior stakeholder involvement – Having high-level backing and authority is an essential part of ensuring negotiations run effectively and in gaining a streamlined approval process when restructuring contracts. The support of these stakeholders was key to the success of the project.

Livingstone helped the client achieve its primary goal of reducing its Oracle support stream and realizing cost-savings at its ULA renewal point. Overall, the client realized a million dollars in cost-savings and saw 12 times its ROI in Livingstone.

 

Continued success & room for innovation

For the client’s Microsoft needs, Livingstone continues on a managed service basis. This includes executive coaching on contract management and advising on everything from server rights and cloud investment management to licensing change and business strategies. Livingstone also continues to work with the client on vendor engagement, ensuring that the partnership between Microsoft and the client goes from strength to strength both contractually and commercially.

Livingstone’s Oracle optimization success enabled the client to release significant funds for various digital transformation and innovation projects. Livingstone will continue working alongside the client as it looks for more ways to improve its software and cloud estates, helping it to achieve its objectives through contract optimization and negotiation support for other major vendors.

As part of this continued work with the client, Livingstone is also in the process of producing an Effective Licensing Position for both its Microsoft and Oracle estates.

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