How to Negotiate Salesforce Licensing

There are a variety of salesforce licensing options. These options vary based on the type of solution you choose. Seat licenses grant access to a solution to a defined number of users within the customer org. These licenses are assigned to specific users by the org admin. In general, this licensing option is preferred by many solution owners. However, seat licenses may not be the best option for all customers. If you’re planning to use this type of licensing, make sure you consider its pros and cons before settling on this type of agreement.

 

Salesforce Enterprise License Agreement

 

A SELA enables a company to expand quickly within a new account without the need to worry about red tape or barriers. Its use of SELAs has allowed it to increase market share and receive additional press. Here are some reasons why it is important to understand your SELA before signing one. We hope that the following information is useful. Let’s look at some common issues that arise with SELAs. Listed below are the most common concerns.

 

Limitation. While SELAs used to provide “Unlimited Access” to the platform, that is no longer the case. Most agreements contain usage ceilings, product sets, and massive financial growth commitments. Regardless of the benefits that the Enterprise License Agreement provides, it’s important to read the fine print. Whether you need unlimited access or only a small amount of it depends on your specific needs. But you should also be aware of the pitfalls.

 

Flexibility. The terms of your Salesforce Enterprise License agreement may limit your ability to use the software. If your needs change, you can always switch to a different version of the software, which has different features and capabilities. You can also change the license to demo versions by contacting your Account Executive. Changing your license also allows you to reassign permission sets to other users if needed. If you are looking for a new version of Salesforce, we’ve written a guide to help you understand your license.

 

As with all Salesforce agreements, you must be sure that you understand the terms. Salesforce usually offers 30 days’ notice, but that’s not enough time to migrate your data if you are leaving. Be prepared for this contingency and negotiate the terms up front. However, if your business changes drastically during the term of your agreement, you’ll be forced to pay for the license for three to five years – or more. This will result in $36M of wasted money in the long run.

 

A comprehensive license agreement should include important terms and conditions. It should include the time period that you expect to use the Software. After the initial period, you may need to pay additional fees for updates or upgrades. A good license agreement should cover the entire life cycle of your initiative, so that you can continue to use it successfully and have the support you need. So, read this document carefully to understand how the terms of your license agreement apply. Consider all of the aspects and details.

 

Salesforce Unlimited License Agreement – ULA

 

The Salesforce Unlimited License Agreement (SELA) is a less-common deal structure. It is often pitched to customers with high demand but unspecified future licensing needs. While it may sound like a great deal, there are numerous hidden costs and risks associated with this model. Read on to learn about the main advantages and disadvantages of a Salesforce Unlimited License Agreement (ULA).

 

To determine which version of Salesforce is right for your company, start by evaluating your needs. Determine how much time you expect to use the application and which features are most important for your business. You can also set different user permissions and profiles to control how much time each user can access the application. After calculating the amount of time you anticipate using the software, compare pricing to determine the best choice. If you’re considering an Unlimited license, be sure to contact your Account Executive first.

 

Overage fees are also common with SELA agreements. If you exceed your cap, Salesforce will charge you an additional fee for overage usage. If your cap is reached, Salesforce will contact you to negotiate a new, more expensive product. If you don’t have an internal SAM team, the Salesforce unlimited license agreement may not be right for your business. If your organization decides to terminate the contract, it can be expensive. In addition, overage fees can significantly increase your overall cost of ownership.

 

The Saleforce Unlimited License Agreement is binding on both the parties and will need to be signed by an authorized representative of both. If you are unhappy with the service, you can terminate the Agreement by giving SFDC 180 days notice. If the Agreement is automatically terminated, you should contact SFDC immediately and let them know. Then, your account will no longer be active. However, you must ensure that you don’t terminate the Agreement based on your JV agreement.

 

Salesforce License Types

 

The different types of Salesforce licenses vary in functionality, and can be categorized as Platform Starter, Platform Plus, or Enterprise. Each license offers a different set of standard and custom objects. These licenses offer full access to standard CRM and AppExchange apps. You can switch between these licenses without losing functionality, but you must reapply for Permission Sets. Platform Starter and Plus licenses can coexist with any existing Salesforce license.

 

The platform license gives users access to core platform functionality and all of the AppExchange apps. They also get access to the Lightning platform, which is tailored to the needs of individuals. While these licenses provide access to all of the standard features of the platform, they do not grant access to custom apps, dashboards, and opportunities. However, these licenses do allow users to install, manage, and view custom tabs. Users who need apps for their specific business operations will likely need a platform license.

 

When choosing a Salesforce license, companies should be smart and consider how their company will use it. Most companies will blindly purchase Enterprise licenses without really thinking about the utilities and applications it includes. It is imperative to check the license at least 5 times before committing to a purchase. Because licenses are so expensive, companies should always investigate across different licensing platforms and compare prices. In addition, they should ensure that the license meets the requirements of the company.

 

While there are several types of Salesforce licenses, there are a few general types. These include Knowledge Only and Content Only user. The former is the right choice for users who need access to Salesforce Knowledge. They also come with a profile that grants access to the Articles and Ideas tabs. The latter license provides access to all of the other Salesforce features. It also grants access to additional apps, such as wikis and forums. It also includes a custom url.

 

The two other main license types are Enterprise and Individual. The Enterprise license is for companies that want the best of both worlds. Enterprise licenses have more functionality than a single user. However, a single user license will allow you to create dashboards, manage user groups, and manage email campaigns. These licenses are typically assigned to a primary contact, such as a customer service representative or salesperson. If you’re unsure about which license type to purchase, Cymetrix can help.

 

Salesforce Negotiation

 

The success of a Salesforce licensing negotiation depends on the amount of enterprise planning and preparation you do beforehand. Map multiple scenarios based on your demand model and confidence level. Consider adjusting the proposed timing of software deployments, or opting for nothing at all, or just the minimum contract requirements. This way, you can easily make a better case to the vendor during the negotiation process. Below are some tips to ensure a successful outcome. Listed below are some tips to improve the chances of a successful Salesforce negotiation.

 

Make sure you understand the Salesforce pricing structure. It can be confusing and difficult to interpret, with various tiers, volume discounts, and optional extras. To make the most out of the Salesforce pricing structure, familiarize yourself with its different options. Make sure to review all the pricing models before you meet with the rep. If you don’t understand the pricing structure, make sure to ask for a quote from other vendors. You can also compare the offerings of both companies and make an informed decision. Redress can help you with this task, but there are also other salesforce licensing experts out there.

 

Get an accurate picture of your estate and usage. As a longtime Salesforce customer, our client wanted to secure significant cost savings on two major upcoming contract renewals. This would give the company greater control over its expenditures. To achieve these goals, we researched Salesforce  negotiation services. We spoke with an industry research firm and learned that Livingstone had extensive experience negotiating with Salesforce. We won the engagement following a competitive proposal process. By analyzing the Salesforce estate, we created a clear picture of our future business needs and spent.

 

To make the most out of a negotiation, you must first understand the cost. Pricing is calculated by looking at how many people will be using the application. After you’ve determined how much time you’ll spend using it, you can then compare prices and add-ons. Remember that each individual user’s usage may vary and you should research each one thoroughly to find the best deal. You might want to negotiate the price for the highest-value features.