Tag: pricing

Four Steps to Improve Cybersecurity Pricing and Feel More Secure with your Spend | Blog

Investing in cybersecurity can be costly for organizations but is essential in today’s risky environment. With a myriad of confusing pricing models, determining your cybersecurity spend shouldn’t be another threat. Learn some simple steps to feel more secure in negotiating cybersecurity pricing. 

Contact us to further discuss this topic or for questions.

With demand for cybersecurity services skyrocketing in recent years, budgeting decisions have moved beyond IT discussions to C-level conversations by the boards of the largest enterprises.

This focus at the highest levels, along with the rapid evolution of cybersecurity technologies and services, has brought an unintended pain point – unwieldy cybersecurity pricing structures with a great deal of overpricing by providers.

The problem is exacerbated by a few practical issues, including:

  • Vendors using different pricing models for the same service: For instance, pricing for Managed Detections and Response (MDR) solutions varies with CrowdStrike and Red Canary having per endpoint pricing, Sophos offering per user pricing, and Rapid7 following an asset-based pricing model
  • Inconsistency in defining unit-based pricing metrics: Even for seemingly commonplace services such as security information and event management (SIEM), some vendors consider peak values of events per second (EPS) while others consider average values
  • Semi-asset heavy pricing nature: Pricing is frequently a bundled black box with provider-financed licenses for cybersecurity platforms

It is not surprising that most enterprises we spoke with in the last twelve months were unsure whether they had struck the right deal with providers for their cybersecurity spend. Let’s explore this further.

Steps to achieve clearer cybersecurity pricing

Despite the nebulous structures, transparency in cybersecurity pricing can and should be achieved by following these four simple steps:

  1. Break the black box fee into logical components such as transformation costs, license costs, run fees, and project management office (PMO) charges
  2. Break the run fee to the lowest unit level, such as per endpoint for antivirus or per IP address for vulnerability management
  3. Benchmark the run fee pricing at this unit level
  4. Benchmark pricing of transformation costs, license costs, and PMO charges to achieve maximum benefits

The potential savings that can be realized by going through this process can be substantial, as illustrated in this example of a large natural resources company that had a standalone cybersecurity services relationship with a Tier-1 IT service provider.

The relationship had comprehensive coverage across the security value chain (including endpoint security, host intrusion prevention, endpoint detection and response, identity and access management, cloud security, firewalls, email gateways, network intrusion prevention, security information, and event management).

The provider financed licenses for CrowdStrike and Netskope, while the client financed licenses for other platforms such as Symantec and Palo Alto Networks. The contract had a black box fee model for a defined range of volumes (number of endpoints, firewalls, gateways, EPS, etc.).

Working closely with the client through the four-step process described above, we benchmarked the current cybersecurity spend. As a result, the client locked in a 16% spend reduction at renewal, even though the general pricing trend in the industry was clearly inflationary.

For more cybersecurity pricing tactics to increase contract efficiency and competitiveness, please reach out to [email protected] and [email protected].

Hear from our pricing experts as they discuss recent pricing trends, key tactics enterprises use to keep their software spend in check, and the outlook for software and cloud pricing in 2023 in this webinar, Software and Cloud Pricing and Contract Negotiations: Keep Spend in Check.

Structuring an Outsourcing Deal in This Era of Uncertainty in Europe | Webinar

LIVE WEBINAR

Structuring an Outsourcing Deal in This Era of Uncertainty in Europe

Economic changes have taken the global market by storm, and Europe is no exception. In this webinar, our analysts will discuss changes in enterprise expectations and the defining characteristics of an outsourcing deal in 2023 in Europe.

Join us to learn what an ideal outsourcing deal in Europe should entail in terms of offshoring, automation, pricing and cost savings, engagement models, and contract terms.

Our speakers will discuss:

  • Business expectations from outsourcing deals
  • How service providers are structuring deals to meet these expectations
  • How outsourcing pricing in Europe has evolved and its consequent trajectory in 2023

Who should attend?

  • Sourcing leaders
  • Category strategy leaders
  • GBS leaders managing IT and BPO outsourcing contracts
  • Price-to-win teams from service providers
  • Service providers’ country heads
  • Industry leads within service providers.
  • Service Providers’ sales leaders
Vice President, Pricing Assurance
Practice Director, Pricing Assurance
Partner, Pricing Assurance

Will 2023’s Economic Environment Level Outsourcing Price Increases? | LinkedIn Live

LINKEDIN LIVE

Will 2023’s Economic Environment Level Outsourcing Price Increases in APAC?

View the event on LinkedIn, which was delivered live on Wednesday, March 15, 2023.

In 2022, the global talent shortage and outsourcing price increases due to wage inflation led business leaders to rethink business operations and workforce plans. As we near the close of the first quarter of 2023, will we finally see opportunities to lower costs 📈?

Join this LinkedIn live as our outsourcing pricing experts provide insights tailored to the Asia-Pacific (APAC) region into how pricing is likely to shape up in 2023.

What questions will the event address?

✅ What does current outsourced deal pricing look like in the APAC region?
✅ What is the future outlook for pricing in APAC?
✅ What should enterprises do to ensure commercial competitiveness for their deals in a fast-changing environment?

The CIO’s Guide to Smarter Vendor Negotiation: 10 Tips | In the News

In an IT marketplace marked by turbulence, inflation, and economic uncertainty, the process of contracting with vendors for technology products and services has gotten significantly more challenging for CIOs.

IT leaders may find that prices are going up without an accompanying increase in benefits, with technology providers — less dependent on any one industry or geography — taking a harder line on deals, says Achint Arora, Partner at Everest Group.

Read more in CIO

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