Voted Best Answer
Jan 12, 2017 - 08:10 AM
Yes, you are correct. When we help negotiate licensing deals for clients, we always make sure our maintenance is based on the net price of the transaction (not list price) and IBM usually makes that concession if the deal is large enough. However, that does not last forever, the average term for that concession is usually 2 - 3 years after warranty expiration. I have been successful negotiating in that IBM maintenance increases can not exceed "x " percent thereafter. But in general, IBM will always try to get 10%, and you are well within your rights to push back and negotiate. It is an art to do that negotiation, I actually enjoy it. Over time, they have taken the attitude that it is their right to get 10% a year increases, which is something I always have a problem with.
I find many clients are paying in effect, list price for maintenance, which IBM terms "entitled price". This to me is an opportunity to reshuffle the deck, and perhaps walk away from those licenses and order all new. Over a 3 year term, the ROI on this strategy is always beneficial. I will be presenting at the conference in Henderson NV if you are attending. Look me up. Mike Cleary