Corporations typically negotiate strong preliminary pricing — a "honeymoon" period — only to give away those cost savings later in the contract to their supplier. IDC's SmartIndex tool is designed to ensure that buyers will maintain competitive pricing over the course of their contract with their IT supplier. SmartIndex is a monthly or quarterly benchmark focused on a buyer's specific system configurations, providing the most accurate and relevant competitive pricing benchmark.
IDC provides an "apples to apples" comparison that buyers can use as a competitive market benchmark price on which to apply their volume discount. IDC can also provide insights into peer discount levels appropriate for a given volume of purchase. Buyers using IDC's SmartIndex can achieve competitive pricing and maintain that same level of comfort throughout their contract period. SmartIndex also reduces the need for unnecessary additional (and costly) bid cycles previously needed to assess market price. IDC has been the de facto standard of price research in the marketplace for over 15 years and has saved companies millions of dollars on their IT hardware purchases.
Premier IT Hardware Procurement/Pricing Solution
Third-party objective price benchmarking
An exclusive industry-standard solution
Long-term aggressive pricing
Competitive pricing index
Worldwide coverage
Product and Geographical Coverage
Products
Desktops, notebooks
Rack and blade servers
Printers
LCDs
Geographies
Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Singapore, Spain, Sweden, the United Kingdom, and the United States
Volume Purchase Price Chart: SmartIndex Versus Current Methods
Source: IDC
SmartIndex Methodology
IDC's SmartIndex establishes a level-playing field based on the standard configurations being acquired by the purchasing entity. Competitive peer models from the top market manufacturers are set to the exact configuration requirements of the buyer, ensuring the most accurate market pricing. The manufacturers used are the market leaders in the various IT hardware segments. Line-of-business prices from major tier 1 suppliers in each product category are used to get the most accurate parallel-level supplier pricing. This is the typical price point used to negotiate big deal pricing from the major vendors. SmartIndex works off the average of these competitive price points to ensure the buyer moves with the competitiveness of the marketplace. That index price becomes the benchmark price point for that product. A company's volume discount is then applied to that number. SmartIndex is updated to remain consistent with the market and will be updated for changes in pricing or products. A buyer can be assured that the same acceptable discount agreed to today will be maintained and honored each quarter throughout the length of the supplier contract. This industry standard is recognized by all major suppliers.
How SmartIndex Works for You
Money Savings
You get guaranteed long-term savings. Prices stay aggressive over time.
Price Assurance
SmartIndex saves you money by ensuring that your price discount remains competitive over time.
Technology Freedom
Your price moves with the market and with technology, whether you are a rapid technology adopter or more platform stable.
Global Pricing
SmartIndex has a worldwide price benchmarking capability.
Time Savings
SmartIndex is a simple model. It is easy to integrate and easy to understand. It eliminates the need to perform multiple RFPs to check competitiveness, saving you thousands of dollars.
Third-Party Objective Pricing
You don't need to rely on a supplier; IDC ensures accurate competitive pricing.
Peer Discount Insights
You receive insight into how well you are doing and how your peer companies are achieving better savings.
