Organizations across the globe are feeling the squeeze from global software mega-vendors, who wield significant power, often dictating terms that can lead to overpayment or unfavorable agreements. Clients, initially confident, may not fully understand the complexities of their agreements and are at the mercy of changes vendors make after the implementation of their enterprise solutions.

Invictus Partners, an Australian-born, fast-growing global enterprise software advisory firm, is helping blue chip companies, businesses, and government agencies across all continents stand up to what they term the 'software mafia' (global software giants and their network of systems integrators and resellers). The Invictus Partners team calls themselves the 'enterprise software vigilantes,' whose self-appointed mission is to restore equity to enterprise software.

"We arm organizations to stand up to the 'software mafia' and call the shots on their own terms, in their own time. By arming customers with accurate information about their software estates, making them aware of contractual 'gotchas,' and providing them with carefully considered software negotiation strategies and services, organizations can push back on standard vendor terms and price uplifts, while keeping the 'mob bosses' on side. We're about restoring the balance of equity and power on both sides," shares Doug Gibson, Managing Partner.

Invictus Partners specializes in enterprise software license advisory, ensuring businesses reduce costs, maintain compliance and maximize software value. The 'software vigilantes' have delivered nearly $1 billion in enterprise software savings to their client base so far, including companies such as Asahi, Cambridge University, Giorgio Armani, Honda, Illuka Mining, Lend Lease, 7 Eleven, Toyota. Expertise provided includes software license audits, software optimization and asset management, as well as cloud and third-party support license migration readiness. They help clients navigate vendor negotiations with clarity and confidence, to save on costs, avoid non-compliance fines, and garner more favorable terms.

It's time for a software industry shakedown.

Many businesses are faced with a need to cut costs in the software and cloud space, yet software vendors continue to inflate prices year after year. IBM has typically charged 10% for annual support, yet following HCL's acquisition of IBM products, it has pushed perpetual licensing support to 20 to 25%. Oracle increases its support fees to 8% percent per year, Micro Focus between 8 to 10% per annum. Following Broadcom's acquisition of VMware, the license structure is shifting from perpetual licensing to a subscription-only model that, according to Gibson, is pushing annual costs up anywhere from three to eight times what organizations are used to.

"How can they get away with that? They do because many organizations just accept it. That's where we come in. We give them options. We help them understand the licenses they really need and give them data and strategies to renegotiate with the vendor, so they only pay for what they actually use. Often this results in a year-on-year cost-reduction, or a smaller uplift than standard," reveals Gibson.

As vendors continue to drive prices up and IT budgets tighten, navigating cost dynamics is further complicated by the imperative to ensure compliance with vendor contracts. "While cost-cutting measures are necessary for many organizations, they must be executed within regulatory frameworks to avoid severe penalties," Gibson explains. Non-compliance not only risks financial repercussions, but also undermines the purported savings, as audits by vendors can uncover discrepancies that lead to substantial fines.

It's imperative to be prepared.

According to Gibson, when organizations push back on standard vendor uplifts and product roadmaps, they may be more likely to get audited, so it's imperative to be prepared. Gibson adds, "It's all about efficiency and compliance. To be compliant, you not only need to know how the different departments, users and systems within your organization are consuming software, you need to know the software vendors' contracts and rules inside and out."

Audits pose significant risks due to the differing interpretations of contract terms between clients and vendors. With complex licensing structures, vendors like Oracle and SAP can expose organizations to unexpected expenses during audits if their systems and agreements aren't meticulously managed. These audits often reveal disparities in how usage is measured and billed, potentially resulting in unbudgeted expenditures that can range from hundreds of thousands to millions of dollars.

It's important to have options. 

There is a heavy-handed push by the 'mob bosses' for organizations to adopt their next-generation cloud-based software and ERP platforms. This is not always a 'top-down operation.' Many businesses have digital transformation initiatives underway, seeing the shift from on-premises, legacy infrastructure to a cloud-based or hybrid model as being an enabler for future business direction.

Transformation, of course, needs to be balanced with cost objectives. Companies are under pressure to reduce costs associated with outdated legacy software and optimize cloud spending to free up resources for innovation. Organizations may not be ready to walk away from legacy investments, choosing to 'sweat the assets' as long as possible. With tactics like ending support for legacy platforms, vendors such as SAP are trying to force their hands.

Invictus Partners specializes in helping clients effectively manage their IT expenditure and make informed enterprise software choices, in a timeframe that works best for their organization. "We help them understand what they are physically using versus what they own, what the contract says, and how they can use it. We provide remediation strategies to prevent unexpected costs. Our team negotiates better terms for legacy software and cloud services, focusing on optimizing efficiency and cost savings," explains Gibson.

Invictus Partners' goal is to resolve issues without additional software purchases whenever possible, by prioritizing strategic changes and clean-up efforts. This proactive approach reduces commercial exposure and mitigates risks, as well as freeing up spend for innovation and next-generation technology investment in the future. "We also help organizations assess options for third-party support, to take out more cost and buy them the time to make informed, strategic decisions about their next-generation software roadmaps. They don't need to be held hostage by vendor-driven timelines," notes Gibson.

"Our approach involves sharing our knowledge with clients, guiding them through the process, and ensuring they understand what we do and why we do it. This collaborative method helps clients gain confidence and autonomy, making them more self-reliant. Although some might think we're giving away our intellectual property, our clients appreciate our transparency and often become repeat customers because of it."

Invictus Partners has proven its capability to deliver substantial cost savings and compliance assurance in the complex realm of enterprise software management. Their proactive and transparent approach helps clients navigate the intricacies of vendor contracts, while fostering long-term partnerships built on trust and mutual success. "Truth be told, we don't actually want to take down the 'ERP mob bosses.' Rather, we want to restore power to our clients, whilst keeping the 'software mafia' onside. By focusing on compliance, efficiency and strategic cost management, we ensure that our clients can navigate the complex IT landscape with confidence and achieve long-term financial stability."

To learn more about Invictus Partners solutions, visit invictuspartners.io.