June 25th, 2020
Are you being pressured to cut costs wherever possible? For many Cognos Analytics and Planning Analytics customers, routine costs are now being scrutinized like never before. Companies are wisely preserving cash in these uncertain times. Today I will share how to save money on Cognos Analytics and Planning Analytics. These are proven methods I have used to help clients save thousands of dollars.
Save Money on IBM Cognos Analytics Licensing
Are You on the Optimal Licensing Model?
The first thing you want to check is whether are you even in the correct licensing model and if you use the licenses you own. For many Cognos Analytics and Planning Analytics customers, they bought years ago and have not really assessed if there is a better IBM licensing model. Lodestar recently moved a number of Planning Analytics (TM1) clients to a more beneficial licensing model like the Planning Analytics Advanced, saving the clients money and giving them more functionality. For more information on Planning analytics and TM1 licensing check out our blog, Cognos TM1 Licensing 13 Most Common Questions.
For SPSS Stat customers there are a number of licensing options to explore. We have seen many clients have a mix of SPSS Stat licensing and when we do some cleanup to have either all Authorized Users or all Concurrent Users we eliminate installation headaches and save them money. See our recent blog on IBM SPSS Stat Licensing Options.
Now if you purchased Cognos or TM1 over ten years ago, and have a small number of users you may be on Enterprise licensing, when Express licensing could save you a lot of money on both new users and support. Express is a licensing model designed for small deployments. If you have less than 50 TM1 Users and less then 100 total Users, this could be an economic option. See our blog Difference between Cognos Express and Enterprise Licensing?
Buy in Bulk
When you buy licensing, discounts are always based on volume. So, consider buying what you will need for the next year or two. Yes, I understand your company doesn’t want to spend any more cash than they need too. That is why we recommend leveraging IBM Global financing for purchase of new licenses. Many clients have qualified for 0% interest.
For more information check out our blog on IBM Global Financing or IBM Financing.
Creative Example
A Cognos Analytics BI client recently came to me needing more licenses. We evaluated their licensing model and determined they would be better off in the Express licensing model. When we ran the numbers with discounts the transaction was a no brainer if it were any other time. But it’s COVID! So, they were getting push back. Lodestar recommended that with the purchase they prepay for 2 more years of support. On the surface it looks like they would outlay more cash. But then IBM Global Financing reviewed the client’s credit and offered 0% interest on the complete purchase for 36 months. This was a huge win for the client as it helped address senior managements cash outlay concerns and the client benefited from huge volume savings. Hint, the best time to get creative on purchases is at the time of renewal. If you want to get creative on how you can get funding approved for your upgrade and additional licenses, contact us at Sales@lodestarsolutions.com.
Save Money on IBM Cognos Analytics Support
Every year IBM sends you a notice of renewal. You compare it to last year and gripe about the uplift. But you need support, right? For some of you, your executives might even question if they should pay for support. If that’s you, check out our blog Consequences of Not Renewing IBM Cognos Support.
But maybe there is a way to save money on IBM Cognos support. First you must answer, am I in the right product mix? Here’s a blog on How an IBM Cognos User Reduced Support Costs by $30,000!
Buying Multiple Cognos Support Years to Save Money
Next you want to consider buying multiple years of IBM Cognos support at one time to save on the uplift percentage. Here’s how support typically works in IBM land. When you buy software at a discount your year 2 renewal is based on your discounted purchase price. IBM takes the purchase price, allocates 20% to support, and then uplifts it 10% annually until it hits list price at which time the uplift is 3% per year. The idea is that you are benefiting from a volume discount. But if you buy multiple years, you can negotiate a lower uplift.
Again, if you used IBM Global financing and qualified for a low rate like 0%, you could leverage financing for the 24 or 36 months so you don’t have a cash outlay for the future years until later.
How to Save Money on Cognos Analytics and Planning Analytics
We shared some creative ideas on how Lodestar Solutions has helped clients save a lot on money on Cognos Analytics and even get purchases approved during COVID. But you are unique. So, don’t try to go this alone! I recommend you work with a partner because salespeople within IBM focus on support, or licenses sales, but partners understand all the moving parts. Lodestar Solutions has your back and loves to create money saving solutions. Just contact us at Sales@lodestarsolutions.com and we will help you evaluate your options. Or call 813-415-2910.