Wefunder sought to cut costs and found their compliance management tool expenses were high. Despite negotiations, the vendor demanded a large prepaid commitment, which was unaffordable in uncertain economic times. Switching tools was complex due to integration challenges.
How WeFunder Saved 50% on a SaaS Vendor Using CloudEagle
“Instead of switching to another vendor, CloudEagle’s negotiations helped us continue using the same tool by just minimizing the overages. I would strongly recommend you consider CloudEagle if you’re serious about realizing savings on your software spend.”
- Sophie Wang, Director of Finance, Wefunder
1320 hrs/yr
Saved in Procurement Negotiation
50%
Savings on a vendor
30 mins
For CloudEagle onboarding
Challenge
%201.svg)
Solution
Wefunder, with CloudEagle's help, identified that compliance management transactions can be optimized. SaaS buying experts led negotiations, removing prepaid commitments. Our experts advised Wefunder against seeking alternatives as we focused on securing a favorable deal with the vendor.
Result
CloudEagle's experts swiftly analyzed app usage and benchmarks, leading to a 50% cost cut for the compliance management tools after negotiations. CloudEagle’s SaaS buying experts eased Wefunder's team workload, boosting productivity by optimizing vendor negotiations and spend management.
Key Highlights:
CloudEagle helped Wefunder identify cost optimization opportunities and reduced spend by 50% on a compliance management tool through effective negotiations.
Challenge
Our financial team launched a project to identify costly vendors and optimize spending. We discovered that a compliance management tool ranked as the second-highest expense. Despite using it on a minimal commitment plan for over 7 years, we ended up paying thousands in overages.
We negotiated with the vendor for over two months to lower transaction costs. However, they insisted on a significant prepaid commitment, which we couldn't afford due to unstable economic conditions.
We even considered switching to another tool. However, this would pose an even greater challenge as it would require a significant engineering effort due to the need for multiple integrations.
Solution
“We made the right choice with CloudEagle. Their expert negotiaton team worked with our existing vendor to eliminate prepaid commitments and where confident in renegotiating our contract and securing a favorable deal.”
- Sophie Wang, Head of Finance, Wefunder
SaaS buying assistance
Wefunder opted for CloudEagle for its faster onboarding and due to our team's expertise in similar scenarios. Working with them, we identified opportunities to optimize transaction volume on the compliance management platform, thus reducing Wefunder's overages.
Expert negotiation
Our SaaS buying experts took over the negotiations, and as a first step, they negotiated with the vendor to eliminate the prepaid commitment. Our experts conducted detailed market research and analyze Wefunder's app usage for negotiation leverage.
Favorable outcome
We asked the customer not to look for an alternative tool, as our SaaS buying experts were determined to negotiate a favorable outcome with the vendor.
Impact
Cost-savings through negotiation
After the initial round of negotiations and rescuing the customer from a prepaid commitment, CloudEagle's SaaS buying experts swiftly analyzed application usage data, utilized current benchmarking information, and skillfully negotiated with the vendor.
Reducing cost and improving ROI
Efficient negotiations with existing vendors resulted in a 50% cost reduction for the compliance management tool, helping Wefunder save thousands of dollars on overages. They continued using the same platform but with a user-friendly contract.
Increased productivity and time saved
Wefunder’s procurement team increased productivity and saved 1320 hours annually on negotiations, as CloudEagle did all the heavy lifting of vendor negotiations and assisted them in streamlining their spend management process.
