HBS Working Knowledge has an article on Technology Negotiations, Highlighting the complexity & difficulty faced by executives in / during technology based negotiations. It states that the four specific problems to crop up more often in the technology arena are: Complexity Negotiations over new technology require sophisticated knowledge of hardware or software that's beyond the scope of most managers. If those trained in science and technology assume that others at the table speak their language, serious misunderstandings can result. Uncertainty When highly complex systems are at stake, no one can be sure whether they will perform as promised when configured for a particular business environment. Different estimates of how a technology will perform can lead to negotiation battles. Egos Those who design or advocate for a new technology often become additional players when they have a vested interest in the outcome of a negotiation. Technology advocates-and their egos-can complicate otherwise straightforward talks. Organizational change The various organizational changes required by negotiated agreements can provoke conflict between parties during implementation. Staffers may have trouble maintaining or repairing new technology, accessing its intellectual underpinnings, or acquiring replacement parts.

Goes on to indicate how managers could proceed with Negotiations which would help them better handle the above issues.

Avoid communication errors and build trust
Because of their added complexity, technology deals are rife with miscommunication. Negotiators tend to make assumptions about a technology-how it will work, what its future demand will be-that color their messages and leave them more liable to hear what they want to hear and block out the rest.

Manage complexity and uncertainty
Prior to a technology negotiation, it's in all parties' interest to learn all they can about the technology to be discussed. This may require a substantial investment of time. Even if you're planning to bring a technical adviser to the meetings, you'll still need a rough sense of the technical or scientific principles involved, the options available, and the obstacles to effective implementation.

Anticipate the difficulties of strategic realignment
Almost any agreement the Cremtech negotiators reach will require ongoing organizational realignment. New staff members probably will have to be trained, while longtime employees must be let go. Managers may need to reassign responsibilities, adjust reporting lines, and impose performance guidelines. The company may have to alter supply chains and invest in retraining. Such strategic moves will disrupt relationships and work patterns-and make a lot of people uneasy. And while most negotiators expect organizational change to be difficult, technology agreements rarely take adequate account of the necessary strategic realignment.

You can find the article here.

Prashanth Rai