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Helping a retailer optimize its Salesforce cloud contracts

In the fast-paced realm of athletic apparel and footwear, one industry leader faced a critical challenge — optimizing costs and negotiating better deals for its Salesforce Core Cloud, Marketing Cloud, and Commerce Cloud modules.

The competitive landscape demanded innovation, not only in product development, but also in managing operational costs. Everest Group addressed this challenge by providing innovative solutions, unlocking significant savings, and offering strategic negotiation insights that fundamentally reshaped the future of our client.

The client challenge: navigating the complexities of cloud cost efficiency

Our client, a leader in athletic apparel, recognized the need for a comprehensive evaluation of its Salesforce ecosystem. The challenge was twofold: assessing the competitiveness of existing prices for Salesforce’s Core Cloud, Marketing Cloud, and Commerce Cloud modules and navigating the intricate landscape of contract renewals. With the rapid evolution of cloud technologies, staying ahead required not just agility, but a strategic approach to managing costs.

The client aimed to negotiate better discounts, strategically positioning themselves for the impending renewals. The challenge was not merely transactional; it was a quest for a dynamic solution that could adapt to the evolving cloud landscape while ensuring cost optimization without compromising on performance. Everest Group was summoned not only to meet this challenge but to redefine the rules of engagement.

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Everest Group solution: a strategic playbook for savings and success

Everest Group offered a multi-faceted strategy to address the client’s challenges head-on. Leveraging our expertise, we meticulously extracted subscription details and unit rates from the complex web of contract documents, providing a clear picture of the client’s annual spend on each of the three targeted cloud platforms.

Equipped with an extensive internal database, we benchmarked the client's contracted prices against recent Salesforce deals, pinpointing areas for optimization and potential cost savings.

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Everest Group provided the client with key negotiation tactics, empowering them to navigate the renewal process with confidence and secure optimal discounts. Our team evaluated Salesforce's Commerce Cloud renewal proposal with data-backed insights, ensuring the client could make informed decisions that aligned with its strategic goals.

Results and impact: a win-win transformation

Everest Group's diagnostic assessment proved to be a game-changer. The results were nothing short of impressive: Core Cloud (Sales & Services) achieved savings ranging from an impressive 7% to a staggering 37%; Marketing Cloud realized cost savings between 1% and 4%, optimizing expenditure without compromising on performance; and Commerce Cloud streamlined spending with savings ranging from 3% to 8%. These results demonstrated the power of strategic negotiation and data-driven decision-making.

Amid this success, a senior business leader from the client organization shared:

Everest Group’s analysis identified cost-saving opportunities and provided strategic negotiation insights, leading to optimal discounts for our Salesforce contract renewals.

Choosing Everest Group: a strategic decision

Why did the client choose Everest Group over other research organizations? The answer lies in our unparalleled combination of expertise, innovation, and a client-centric approach. Everest Group's proven track record of delivering tangible results, combined with our commitment to understanding and addressing unique client challenges, set us apart in the crowded advisory landscape.

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A legacy of success

Everest Group's partnership not only addressed the immediate challenges for this enterprise, but laid the groundwork for future recognition of the company’s efficiency, innovation, and strategic prowess. In an environment where every percentage point counts, Everest Group's transformative solutions proved to be the catalyst for our client's ongoing success.

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