How To Negotiate Your Dynamics 365 (D365) - Tips, Tricks & What to Avoid

How To Negotiate Your Dynamics 365 (D365) - Tips, Tricks & What to Avoid

Dynamics 365 (D365)?

What Is it??

Microsoft Dynamics 365 is a cloud-based business applications platform that?combines components of customer relationship management (CRM) and enterprise resource planning (ERP), along with productivity applications and artificial intelligence tools.??

Choosing the right ERP Supplier?

Selecting the Dynamics 365 CRM or any ERP supplier is and should be a LONG-TERM DECISION. This ensures that the negotiation stage is a key to ensuring cost-efficiency. Once a technology partner (Oracle, SAP, Microsoft) is selected, internally we recommend the following do’s and don'ts in your negotiation:?

DO’S?

• Multi-Vendor Selection Process?
• Use the competitive approach from the ERP market?
• Long-Term Approach??
• Combining Dynamics 365 purchase with (upcoming) EA Renewal (if applicable)?

Multi-Vendor Selection Process?

We recommend that you always have multiple vendors as options before fully deciding on the right ERP supplier.?This process will only help you to understand your needs better as an organization. It gives you a picture of how each ERP is different on its own and each of them has its own advantages.??

Use The competitive Approach from the ERP Market?

Once you determine your needs, use this to your advantage in the negotiation stage. Bare in mind, Microsoft is not a market leader in this segment. There are many other ERP suppliers who dominate this segment. Ensure you are using this to your advantage in your negotiation phase.??

Long- Term Approach?

We always advise our clients that selecting any ERP supplier should be a LONG-TERM DECISION. So, before the negotiation phase with any ERP supplier, determine your license / subscriptions requirements and needs as an organization for the next five (5) years. This is to ensure cost-saving potential and guarantees price protection for the term you would like to negotiate. Typically, Microsoft offers a three (3) year contract. However, it is common for them to also negotiate for a term of 5 years. So, always proceed to request price protection for the duration of the contract term as a condition.??

Combining Dynamics 365 Purchase with (upcoming) EA Renewal (if applicable)?

If applicable, we propose that you combine your purchase of Dynamics 365 with the purchase of an EA License or an EA Renewal. This almost always guarantees you as a client of potential discounts which will further contribute to the cost-savings.??

DON’T'S?

• DON’T let Microsoft or any other ERP vendor know the choice of your technology partner. (IT WILL COST YOU MONEY)?
• DON’T buy the whole suite?
• DON’T let the technology partner make the choice for you?

DON’T let Microsoft or any other ERP vendor know the choice of your technology partner. (IT WILL COST YOU MONEY)?

AVOID AVOID AVOID letting the choice of your ERP supplier know your preferred choice as an organization. This will only provide a huge disadvantage to your organization. Always keep the preference of the vendor internally within your organization and treat this with utmost confidentiality. We have seen many cases where this was not the case. The choice was openly outspoken to the vendor, and it always leads to a situation where the Client ends up paying too much.??

DON’T Buy the Whole Suite?

When you determine your license/ subscription requirements for the next five (5) years, you will be able to profile the needs or requirements of your organization. DON’T buy the highest suite just because the ERP supplier is offering you a high discount. 9 out 10 times, a full suite is not needed for every user in your organization. AVOID overbuying just because the offer seems too good to be true.??

DON’T Let the Technology Partner Make The Choice for You.??

Never allow your partner to make choices for you or let them determine the needs of your organization. Always choose for a direct contact with Microsoft or any of your ERP supplier of choice.??

Insider TIPS & TRICKS?

DETERMINE if your implementation partner is a multi-vendor partner or not. Microsoft partners or any other ERP Partners may be biased in their offering.??

ENSURE that your partner provides full clarity on their earning models (including rebates, CSP (Cloud Solution Provider) and incentives from Microsoft)?

BE CAREFUL with what information you provide to your partners. Microsoft or the respective ERP will hear of this!?

If you are still up in the air on how to go forward with your choice of ERP supplier, reach out to us and let us jump on board to help you. Want more tips, tricks, and insider knowledge? Subscribe to us on our?YouTube, follow us on?LinkedIn, and sign up to our?newsletter?with monthly updates on Microsoft policies!?