4) Think long-term. Short-term budgetary concerns can tempt enterprise customers to make deals with long-term risks. This is also known as the "We need to save $1 million in the next quarter no matter how much it costs" syndrome. Not only do carriers understand this syndrome, but they capitalize on it. They deliver the requested up-front savings or credits along with a higher commitment or, worse yet, escalating commitments designed to erode the customer's "cushion"--that is, the difference between the commitment and the actual amount spent.
5) Be wary of strategic partnerships. Some customers can't say no to vendors, which is especially common in so-called strategic partnerships where the carrier and customer agree to buy services from each other. Don't assume your strategic partner is giving you the best deal. If your partner is giving you an uncompetitive bid, be sure that the extra cost of the services is worth the premium you're paying.
Justin Castillo is a partner at Levine, Blaszak, Block & Boothby, a law firm that specializes in negotiating telecom and technology agreements for enterprise customers.
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