Gartner Research

Migrate to the Cloud With Your Priorities and on Your Schedule — Not Those of Your Incumbent Software Vendor

Published: 17 January 2017

ID: G00318639

Analyst(s): Melanie Alexander , Rob Wilkes , Roberto Sacco

Summary

Software vendors are intensifying contract, licensing and pricing pressure to "encourage" migration to their cloud offerings. This research helps sourcing and vendor management leaders responsible for procurement analyze and optimize their options when negotiating licensing and cloud agreements.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Vendors often give preferential pricing to customers who purchase their cloud services, and will offer additional discounts for on-premises purchases if cloud is included, which may pressure sourcing and vendor management leaders to move to the cloud, even if they are not ready to do so
  • Software vendors are restricting new functionality and increasing maintenance fees on existing on-premises licenses, and some formerly on-premises vendors are now exclusively cloud-based, limiting sourcing and vendor management leaders' options to remain with on-premises licensing
  • The frequency and intensity of on-premises software license audits from some software vendors who offer on-premises and cloud services have increased, and sourcing and vendor management leaders may be offered the purchase of cloud subscriptions as a way to resolve compliance issues

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