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Negotiation

Wentworth Institution of Technology is negotiating with VMWARE and Citrix for new software and hardware. VMWARE currently offers a lower total cost of $645k compared to Citrix's $790k. However, Citrix offers lower consulting fees. Wentworth's negotiation goals are to get VMWARE's software and hardware costs down to $500k and $40k respectively, and Citrix's consulting fees down to $90k, while aiming for an implementation date between July and September 2016.

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97 views

Negotiation

Wentworth Institution of Technology is negotiating with VMWARE and Citrix for new software and hardware. VMWARE currently offers a lower total cost of $645k compared to Citrix's $790k. However, Citrix offers lower consulting fees. Wentworth's negotiation goals are to get VMWARE's software and hardware costs down to $500k and $40k respectively, and Citrix's consulting fees down to $90k, while aiming for an implementation date between July and September 2016.

Uploaded by

api-299105232
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Wentworth Institution of Technology

Negotiation Strategy:
Summary:
Our project team has selected VMWARE as the vendor of choice. Citrix
was second in consideration based on service reputation. We decided
to begin negotiation process to see which company will better suit our
needs and finances.
Initial Cost

VMWARE

Citrix

Software

500k

600k

Hardware

45k

40k

Consulting

100k

150k

total

645k

790k

Table Summary:
Based on current terms. VMWARE meets our overall financial need
more so than the competitor in 2 out of 3 main points. Giving VMWARE
the overall lower cost with losing out on quality.
Deal sheet:
Term
mum
Software

Initial

Mini

Goal
500k

700k

500k

Hardware

45k

40K

40K

Consulting

100k

90k

90k

Annual Support

50k

50K

50K

Implementation
date

July 1-2016

Aug 1-2016

Sept 1-2016

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