I have seen wide variations in SaaS contract pricing (30% to 40%) from customers with similar user subscription numbers, application needs and term lengths. There is always the potential to have SaaS price variances based on geographic location, SaaS vendor account executive selling skills or contract timing in a vendor’s fiscal year. However, there are more-critical factors beyond these that can dramatically affect subscription pricing.
Some of the key factors contributing to these expensive SaaS contracts are companies needlessly signing vendor price confidentiality agreements limiting their negotiation power, beginning contract renewal talks a month before the contract termination date, or negotiating large ELAs with no hope of ever reaching the subscribers numbers to make the deal cost worthy.
A newly Gartner published research note entitled: How to Avoid Expensive SaaS Contracts – R.DeSisto, provides 6 best practices to reduce SaaS contract expenses. If you are in the process of signing a new contract or renewing existing one it is a must read.
Read Complimentary Relevant Research
Cloud Computing Primer for 2017
Cloud has evolved from a disruption to an expected approach to traditional as well as next-generation IT. Our research helps IT leaders,...
View Relevant Webinars
La Strategia SAP: tra In-memory e Cloud Computing
SAP, uno dei più importanti fornitore di software per le organizzazioni italiane, sta attraversando un processo di trasformazione strategica...
Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes, with attribution to Gartner. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.