ADOBE: Top 5 tricks for negotiating their Cloud products
What to keep in mind, and how to secure the best deal
By Thomas Busking and Sopheap Buor
Marketing and document powerhouse Adobe has increased its portfolio significantly over recent years, playing a larger role at organizations. In fiscal year 2017, Adobe achieved an annual revenue of $7.3 billion , representing a 25% year on year growth. Strivesource has compiled a list of 5 key areas to keep in mind when negotiating with Adobe.
1. COMBINE AND CONQUER
Adobe has divided its core products in 3 segments: Creative Cloud, Experience Cloud and Document Cloud. To you as a customer they treat these separately as well, often having different account managers, different contracts and different sales plans. Traditionally we can call this divide and conquer, negotiating each deal individually to maximize the revenue per separate product group. With Adobe’s on-going strategic acquisition growth, it becomes more and more interesting to leverage all your Adobe contracts and products to maximize the value for you as a customer.
2. OPTIMIZE LICENSES
Chances are that you have a number of different types of Adobe licensesand license models. Especially in Creative Cloud (Acrobat, Photoshop, etc.), where products are used for many years and companies often still have a mix of on premise and subscriptions. Or perhaps you have recently made the jump to cloud with subscription models. Either way, the key to increase value out of your Adobe spend is to optimize your license base. Align your license metrics, use trade in value and align usage with commitment. If you don’t, be prepared for a hefty bill!
3. USE BENCHMARKS
One of the key strengths of Adobe products? Standardization. Most of their products are standard out of the box, ready to be used by anyone, anywhere. Whether it’s their Creative Cloud or their Experience and Marketing Cloud offerings, making use of benchmark data will be the difference between a mediocre deal and the best deal. Stop spending too much on Adobe and use experts from Strivesource to get access to the best benchmarks on the market.
4. USE TIME TO YOUR ADVANTAGE
Adobe’s fiscal year runs from December to November, ending on the Friday closest to the 30th of November. Make use of the irregular fiscal year by bundling your purchases at the end of an important quarter or year end. Ensure your negotiation strategy is well prepared and includes how to deal with governance, escalations and timelines.
5. UNDERSTAND ADOBE’S AGENDA
Expansion is on Adobe’s mind. With key acquisitions Adobe wants to become a dominant player in the CRM Market. In September 2018 Adobe announced the $4.75 billion acquisition of Marketo to boost their portfolio in Marketing automation, preceded by the $1.68 billion deal acquiring eCommerce platform Magento in May 2018. With this strategy,Adobe wants to challenge the likes of Salesforce. This strategy was further boosted by the announcement of the Open Data initiative by Adobe together with Microsoft and SAP. It is clear that the CRM space is hot at the moment, and the recent strategic acquisitions show that Adobe is more than eager to win market share from their competition. Make use of these competitive dynamics in your selection and negotiation by using a specialized firm like Strivesource.
Strivesource has a proven track record on Adobe dealmaking, sourcing strategies, cost benchmarking and in depth negotiation expertise. We can support you with creating your sourcing plan, negotiation support or getting more value out of your Adobe contracts and licenses. Contact our Strivesource Adobe lead now.
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