In Episode 2 of our Microsoft Briefing Series, we take a look at Microsoft PowerBI and Power Apps, specifically looking at what’s changed and how organizations can optimize, forecast and leverage certain information during negotiations to get the best deal that suits their requirements and consumption plans.
Part of Microsoft’s low-code Power Platform, PowerBI and Power Apps are applications designed to help organizations make intelligence-led business decisions. Whereas PowerBI provides interactive visualizations and business analytics capabilities, PowerApps is a suite of apps, services, and connectors, as well as a data platform, that enables organizations to rapidly develop, build and share custom apps for their business needs. These apps can connect to the likes of Office 365 and Dynamics 365, providing intelligent data feeds so that organizations can look at the technology being consumed and gain real insights on data sets to inform business decisions.
Why this is a hot topic
Even as little as three years ago, Power Apps in particular was not a major topic of discussion when it came to contract negotiations. Now however, Power Apps and Power BI are a huge area of growth and focus for Microsoft as Power Platform’s capabilities strengthen and it looks to challenge long-standing market competitors. Indeed, at Livingstone, we’re seeing Microsoft’s sales teams and resellers push hard to sell these products – and these tools are successfully affecting how deals are made and seeing more acceptance and consumption from organizations looking for the best business intelligence platforms.
The benefit to knowing this information for organizations now in the market to acquire Power Apps and/or PowerBI, is that it can become a powerful negotiation lever.
What to consider if you’re in the market for Power Apps/PowerBI
First and foremost, it’s vital to consider what it is you actually need from these platforms. As “seeded” apps, organizations have the right to use standard connectors, without additional costs and Office 365 and Dynamics, for example, have a lot of capabilities from the outset. Of course, they have their limitations in scaling and consumption, but the full ‘premium’ level service offered by Power Apps or BI might not be necessary.
The key to identifying which level is right for you? Know your consumption.
How to negotiate the best deal
Understanding what is realistically needed from a consumption perspective is the first step to being able to negotiate a good deal – and it’s important to get it right from the start, as a contract negotiated now will affect you now and in the future.
So, take the time to understand and lay out your future consumption plan. Realistically, what is your organization likely to consume in the years to come? What licensing will you need? How many licenses will you need? If the plan is to move towards a subscription-based model, how will this affect consumption?
When it comes time to sit at the negotiation table, having a clear understanding of your current and future consumption, as well as licensing requirements and a clear Bill of Materials, and by highlighting this roadmap to Microsoft, you can be confident in your ability to walk away with a deal that meets your requirements. Watch out for the discount though – like all Mega Vendors looking to sell their current sales focus, it shouldn’t be a surprise that an enticing discount for upgrading to more product or more premium product will be offered. But unless you need that product, don’t be tempted – a discount now for extra product you don’t need in the future will only cost you more further down the line to rectify the problem.
For more tips on how to strike the optimal contract deal for your organization, read our e-guide here.
Our key takeaways
- Power Platforms are a key growth area for Microsoft – ensure that your procurement and IT teams, and other relevant stakeholders are aware of this ahead of negotiations to ensure extra leverage. Read our Best Practice IT Procurement e-guide here.
- Validate use of ‘seeded’ apps – check to see if seeded applications will actually give you enough product, or whether you will need the full package.
- Assess actual consumption – and make a roadmap for the future to ensure your contract reflects your requirements and needs to avoid under- or over-spending.
Register for our full six-part Microsoft Briefing Series here.
For more information, visit our dedicated Microsoft page, email us on info@livingstone-group.com or complete this form and one of our contract experts will be in touch.
About the Authors
Simon Leuty, Livingstone Founder
Simon is a founder of Livingstone Technologies. He currently sits on the Executive Leadership Team as Head of Pre-Sales. Simon is responsible for the development roadmap of our client portal LUCE.
He has over 15 years’ experience of the Software Asset Management and Cloud markets, working closely with our growing customer base to help them take control of their software and cloud cost. Simon helps to eliminate unacceptable spend and enforce tight governance standards that keep them compliant, agile and secure.
Gareth Redshaw, Director of Microsoft & Cloud
Gareth joined our team through the acquisition of Cloud Optics, who are now a company in the Livingstone Group. With over 15 years’ experience in software licencing Gareth has helped clients optimise spend, develop their future strategy and taken control of high-profile vendor negotiations; this includes one of the largest UK Government contracts.
Having successfully managed UK wide government EWA contracts from 2009-2011, more recently Gareth developed a proven methodology for cost optimisation. He has implemented this across EMEA wide clients and delivered substantial savings. Gareth developed and grew the largest LSP’s practice for Microsoft government SME consulting and Cloud Commercial Optimisation. In addition to this he was responsible for this same LSP’s Licence Consulting UK, Ireland & Nordics.