4 Money-Saving Tips for Negotiating SaaS Contracts and Renewals

As we wade through an economy that is still a little uncertain, organizations continue to adjust their offerings, prices and contract terms for optimal proficiency and profitability. It’s no different for SaaS vendors and everyone is feeling the pressure from their recent price hikes. Before you sign on the dotted line for new technology in 2023, take stock of what you really need to negotiate a right-price SaaS contract. 

Here are four money-saving tips for SaaS contract negotiations to safeguard your budget and avoid costly compliance fines.

1. Inventory your SaaS environment.

Before entering a contract or renewal negotiation, conduct a complete inventory of your IT assets (including software, SaaS, and cloud) and usage. This way, you know what you have and what you really need, which leaves room to trim out anything unnecessary the SaaS vendor may offer.  

2. Deeply understand your SaaS usage.

Arm yourself with data on who is using what and how. In the case of a renewal, you’ll know how well the application is working for your organization, and if you’re actually using what you purchased. 

3. Don’t be afraid to negotiate price.

There’s almost always wiggle room in a SaaS contract – you just have to ask the right questions. 

4. Optimize your SaaS licenses.

Identify savings opportunities on your next contract cycle by optimizing your licenses and clearing out the waste. Bring that information to your next renewal conversation.   

These tips for negotiating SaaS contracts and renewals only scratch the surface on how you can land a good-fit agreement. We’ve got more information in the Gartner® Report, 3 Reasons Why SaaS Vendors are Raising Prices and What You Can Do About It

If you’re preparing for a conversation with one of the four largest software vendors – IBM, Oracle, SAP, or Microsoft, check out our guide, A Perspective on Rightsizing Your Enterprise Application Software Costs.  

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