3.4 Describe the Renewal Cycle for Software and Services 700-805 Practice Questions (Page 5)

Questions 21–25

1. 21foundation · easy

   Which event is a typical trigger that initiates the renewal process for a software subscription?

   • AThe product's end-of-life announcement
   • BThe customer's fiscal year end
   • CThe contract expiration date approaching
   • DA new version of the software being released
   Reveal Solution Discussion Select an answer first
2. 22expert · hard

   A customer has decided to renew their software subscription, but they have requested a significant discount and a change in the payment terms from annual to quarterly. The renewals manager has the authority to offer discounts up to 10% and can adjust payment terms. The customer's account is strategic and has a history of timely payments. What should the renewals manager do?

   • ANegotiate a compromise, such as a 5% discount and quarterly payments, while emphasizing the value of the renewal.
   • BRefuse the discount and payment term change, since the customer is strategic and will likely renew anyway.
   • CAccept the customer's request for a discount and quarterly payments to secure the renewal.
   • DOffer the maximum 10% discount but keep the annual payment terms to maintain cash flow.
   Reveal Solution Discussion Select an answer first
4. 23expert · hard

   A renewals manager is preparing for a renewal with a customer where the IT team is the primary user, but the procurement team has a policy of competitive bidding for contracts over a certain value. The customer's current contract is above that threshold. The renewals manager wants to streamline the renewal process. What should the renewals manager do?

   • AWork with the IT team to build a strong value case and engage procurement early to understand the bidding process.
   • BOffer a discount to the procurement team to bypass the bidding process.
   • CFocus only on the IT team, since they are the users and can influence the renewal decision.
   • DWait for the procurement team to initiate the bidding process before engaging.
   Reveal Solution Discussion Select an answer first
5. 24foundation · easy

   During the renewal cycle, which task involves creating a document that outlines the proposed renewal terms and pricing for the customer?

   • AProposal generation
   • BContract signing
   • CValue assessment
   • DUsage review
   Reveal Solution Discussion Select an answer first
6. 25expert · hard

   A renewals manager is handling a customer account with a complex contract that includes multiple software licenses and a support agreement. The contract has a renewal date in 90 days, but the customer has recently undergone a merger, and the new IT leadership is unfamiliar with the current software portfolio. The customer's usage data shows that some licenses are underutilized, while others are at capacity. The renewals manager needs to ensure a successful renewal. What is the most effective approach?

   • AWait for the new IT leadership to reach out, since they are unfamiliar with the software and may need time to evaluate.
   • BFocus only on the licenses that are at capacity and propose an upsell for those, ignoring the underutilized ones.
   • CRenew the contract as-is to avoid disruption during the merger transition.
   • DEngage the new IT leadership early to understand their business goals and conduct a comprehensive usage review to align the renewal with their needs.
   Reveal Solution Discussion Select an answer first