Gartner Research

Plan Your Exit When Negotiating a SaaS Contract, or Risk Cloud Vendor Lock-In and Higher Costs

Published: 16 August 2016

ID: G00295743

Analyst(s): Jo Liversidge

Summary

Technology procurement leaders need to negotiate exit provisions in SaaS contracts before signature or risk being effectively held for ransom when it comes time to leave. Use this research to work out costs, risks and contract terms to ensure you do not find yourself in a cloud vendor lock-in.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Negotiate Sufficient Notice of Termination by the Vendor at the End of a Term; This Should Be a Minimum of Six Months, Depending on the Level of Complexity and Criticality of Your SaaS Solution and Integration Into Your Business
  • Negotiate and Contractually Document Precise Vendor Assistance Provisions for Each Possible Exit Scenario (for Example, Breach by Either Party, Expiry or Force Majeure)
  • Negotiate the Format in Which Your Data Will Be Available and for How Long It Will Be Available Following Termination or Expiry
  • Track All Costs of Exit — for Example, Data Extraction, Cleansing, Training, Third-Party SI Costs, Acquiring Alternative Solutions and Possibly Running Two Systems in Parallel During the Transition Period — and Maintain a List of Transition Activities and an Exit Plan

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