Gartner Research

Four Essential Contract Clauses That Are Often Overlooked When Negotiating a Software or SaaS Contract

Published: 13 October 2016

ID: G00313599

Analyst(s): Rob Wilkes , Bill Ryan


Technology procurement leaders engaged in contract negotiations who focus overly on price will fail to address critical terms that preserve flexibility after the deal is signed. Avoid unnecessary risk and unbudgeted costs by adding these four essential clauses to your contract checklist.

Table Of Contents
  • Key Challenges



  • Negotiate the Right to Exchange Unused Software Licenses and SaaS Subscriptions
  • Negotiate Costs for Potential Future Purchases for a Minimum of Three Years
  • Include a Functional Description of All Licensed Technology in a License Purchase or SaaS Subscription, and Include a "Not-to-Diminish" Clause
  • Negotiate Broad Geographical Use Rights for the Software or SaaS Subscription

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