As a manager in IT Procurement, you attend weekly calls with one of the BUs (IT Security team). In this weeks meeting they tell you they want to purchase some Splunk Enterprise Security (ES) to support their security log needs. From previous work, you know that Splunk requires (Splunk Enterprise) CORE license to use the ES and doesn’t offer a bundled product price for ES and CORE so they have to purchase both CORE and ES to use the functionality of ES. They mention this is urgent and could do a 30 day trial while the pricing is being negotiated. You know that you currently have pricing for Splunk CORE perpetual, Splunk ES perpetual, Splunk Cloud Subscription (Cloud CORE) and Cloud ES. They want to do a trial and make a purchase ASAP, but also want to make the best decision financially and for the long term. They are thinking of doing a 3 or 5 year deal after they do the trial.
Data:
- The contract pricing:
- Splunk CORE perpetual = $300/GB
- Splunk ES perpetual = $66/GB
- IT Service Intelligence perpetual = $95/GB
- IT Service Intelligence term = $66/GB
- Splunk Cloud Subscription (Cloud CORE) = $122/GB
- Cloud ES = $50/GB
- Other BUs currently use perpetual CORE, ES and ITSI
- In addition, there is 250GB of on prem Core available from another BU
- There are other vendors that also sell a similar product that could be used, but the BUs want to use Splunk
- It typically takes 30+ days to put a new Amendment in place to add pricing and terms to the master
- They will need 500GB CORE, 500GB ES
Criteria for Success:
- Protect Charter with the best pricing and terms
- Meet the business timing needs
Task:
- Provide a brief presentation including the following aspects:
- proposed approach
- analysis (include xls file of analysis in your email response)
- what other key terms would you ask for in the negotiation or contract terms for this deal
- how would you validate the pricing is competitive
- recommendation
- what other questions, missing data or other data collection would you need to finalize your presentation and analysis?
