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SEN Is Challenged When Competing Against Competitor Offering Streamlined Offers

SEN Is Challenged When Competing Against Competitor Offering Streamlined Offers. A La C arte. Enterprise Licensing. Foundation Suite Mobility Suite Collaboration Suite. CUWL Standard CUWL Professional UCL Essential UCL Basic UCL Enhanced UCL Enhanced Plus. 15,000+ SKUs and counting….

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SEN Is Challenged When Competing Against Competitor Offering Streamlined Offers

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  1. SEN Is Challenged When Competing Against Competitor Offering Streamlined Offers A La Carte Enterprise Licensing Foundation Suite Mobility Suite Collaboration Suite CUWL Standard CUWL Professional UCL Essential UCL Basic UCL Enhanced UCL Enhanced Plus 15,000+ SKUsand counting… Enterprise CAL Core CAL

  2. Avaya

  3. Cisco UC 9.0

  4. Microsoft

  5. Enterprise Licensing ObjectivesSEN & Customer What’s in it for SEN? Improve sales experience by removing traditional GLP sticker shock with competitive software suites Accelerate commerce by streamlining pricing execution with standard discounting versus traditional LoA process Increase attach rate of software applications with value bundling • What’s in it for Customers? • Competitive price with 3 year discount commitment and deferred payments • Easier to understand value proposition and purchase SEN’s relative to competition • Standard global agreement including terms and volume benefits Page 5

  6. Enterprise Licensing Catches Up With CompetitionKey drivers behind SEN’s proposed transformation Today ELA OEL Strategic Drivers Industry best practice 1 Program with benefits* 2 ** Competitive SW suites 3 Alignment (SW assurance/ support) 4 5 Simplicity Segmentation (volume tiers, education) 6 Capability Low Medium High * Benefits include 3 year locked discount, vertical pricing, ability to move up price tier ** Our current requirement for a separate server for collaboration is a gap against many competitors.

  7. OpenScape Enterprise Licensing SuitesDesigned to optimize purchase value for enterprises Analog Suite Voice Suite Collaborate Suite Team Suite Includes all the good things of Team Suite plus web collaboration and video Includes all the good things from the Voice Suite plus chat, presence & audio Includes our award winning voice, soft phone and mobile client Our award winning voicesolution for analog users … work anywhere!! … share anytime!! … talk today!! … chat away!! * H/W gateway required

  8. Enterprise Licensing AgreementPriced based on competitive value model * Volume discount Less than 1K users 43% 1K-5K users 47% 5K-10K users 52% 10K+ users 58% * Hardware gateways are required

  9. Simple For Sales ForceIt’s as easy as 1 - 2 - 3… Choice and flexibility based on user needs! Discounting + protection through the life of the contract! It’s easy to do business together! 1 2 3 Select Price Order • Apply volume discount • 100 - 999 43% • 1K - 4.9K 47% • 5K - 9.9K 52% • 10K+ 58% • Add 3 year of software support for 12% of software • Easily review software quote by leveraging clear pricing • Combine OEL software with hardware and services • Select suites, mix different type of users • Select additional software options No hidden surprises. No hidden costs.

  10. ELA Removes Sticker Shock Of Traditional List Prices (GLP) Global List Price Collaborate Traditional GLP • ELA list prices set in line with key competitors including Cisco and Avaya • Slight premium in some scenarios consistent with brand and business strategy (monitor market response before pricing below competition) Team Voice Analog

  11. After standard discount ELA remains competitive Price After Standard ELA Discount Collaborate USD • Streamlined standard discount to 4 price tiers accelerating pricing process • After standard discount ELA remains competitive against standard discount from competitors • Deal specific discounting remains an option Team Voice ELA Standard Discounts: T1: 43% T2: 47% T3: 52% T4: 58% Analog Pricing benchmark Cisco: 49-54% off list price Avaya: 47-52% off list price

  12. Enterprise Licensing Versus Traditional A-La-Carte Pricing Pricing of typical voice system use case • Potential to increase attach rate from perceived value versus traditional a la carte • Maintain option to use traditional pricing for specific a-la-carte opportunities Traditional pricing for same ELA products Perceived value ELA Typicala-la-carte configuration

  13. TCO (OEL vs. Traditional) • OEL includes SWA • Traditional includes an upgrade in year 3 • Traditional “Apps Attach equal to OEL” includes same configuration as OEL

  14. TCO (OEL vs. Traditional) • OEL includes SWA • Traditional includes an upgrade in year 3 • Traditional “Apps Attach equal to OEL” includes same configuration as OEL

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