Introduce competition by highlighting alternative quotes from other vendors. This provides a tangible basis for negotiating lower prices or better terms as it demonstrates that you have options. It entails presenting the competitor's proposals directly to Black Duck Software and emphasizing the financial constraints from your finance team regarding the current pricing offered.
If you’re concerned about committing to a multi-year contract, use this tactic to request shorter contract terms or a month-to-month agreement. Emphasize the need for flexibility and the absence of a proven ROI from Black Duck so far. This allows you to reassess the partnership based on performance after a shorter engagement period.
Approach negotiations by specifically stating your budget limitations and requesting a reduction based on the current pricing in comparison to industry standards. Emphasize any lack of utilization of features to further justify your request to reduce costs.
Propose the removal of any auto-renewal clauses in the contract. Argue that this is a requirement from your finance/legal teams to maintain oversight and control over renewal terms, thus ensuring you can revisit the deal each cycle with an aim for better terms.
If you anticipate a significant increase in users, leverage this in negotiations to advocate for more favorable pricing based on economies of scale. Make it clear that an increase in utilization should be met with a corresponding reduction in per-user pricing.