Business Intelligence (BI) and Business Analytics are transforming the way today's companies operate and compete in the marketplace. IDC estimates that businesses will spend over $200 billion on these types of purchases alone between 2013 and 2016 - and vendors are chomping at the bit to make sure they get their share of the revenue.
IT vendors will be eager to cash in on their share of these billions, so it is no surprise that many organizations are at risk for overpaying as much as 20 percent on these products. Double check these four areas to make sure you are getting the best prices:
1. Accepting annual cost increases.
Support, maintenance and subscription renewal costs are typically increased every year. Know your rates, as well as fair market rates, and challenge any increases that are not justified.
2. Paying vendor inflated software prices.
Software licenses are frequently priced well above fair market value by most vendors. But, companies continue to pay these inflated prices because they are inexperienced in BI purchasing and sourcing. Always compare prices and know the market value of all IT purchases before you buy.
3. Investing in large implementations.
Large BI projects can quickly become very expensive, complicated and unmanageable if you aren't careful. Implementing projects on a smaller scale will help keep costs in check and yield more favorable results.
4. Overpaying for ongoing upgrades.
For BI and analytics to work effectively and generate value for your business, they must be continuously upgraded and customized to suit your ever-changing needs. Be ready to raise your budget allowances for any necessary system enhancements, but also know what products you can do without to save money.
BI and analytics are powerful tools that can generate value and revenue when optimized. The best way to avoid paying too much for this technology over the next few years is to plan ahead and have a sound strategy in place.
IT vendors will be eager to cash in on their share of these billions, so it is no surprise that many organizations are at risk for overpaying as much as 20 percent on these products. Double check these four areas to make sure you are getting the best prices:
1. Accepting annual cost increases.
Support, maintenance and subscription renewal costs are typically increased every year. Know your rates, as well as fair market rates, and challenge any increases that are not justified.
2. Paying vendor inflated software prices.
Software licenses are frequently priced well above fair market value by most vendors. But, companies continue to pay these inflated prices because they are inexperienced in BI purchasing and sourcing. Always compare prices and know the market value of all IT purchases before you buy.
3. Investing in large implementations.
Large BI projects can quickly become very expensive, complicated and unmanageable if you aren't careful. Implementing projects on a smaller scale will help keep costs in check and yield more favorable results.
4. Overpaying for ongoing upgrades.
For BI and analytics to work effectively and generate value for your business, they must be continuously upgraded and customized to suit your ever-changing needs. Be ready to raise your budget allowances for any necessary system enhancements, but also know what products you can do without to save money.
BI and analytics are powerful tools that can generate value and revenue when optimized. The best way to avoid paying too much for this technology over the next few years is to plan ahead and have a sound strategy in place.
About the Author:
Joseph B. Kappernick specializes in helping Fortune 500 companies save money. He recommends that you visit NPI to learn more about IT cost reduction
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