Gartner Research

Use a Well-Constructed Price Protection Clause to Avoid Unbudgeted Software and SaaS Renewal Cost

Published: 30 October 2017

ID: G00341821

Analyst(s): Roberto Sacco , Bill Ryan , Rob Schafer


Even the most well-negotiated technology contracts often lack robust price protection for subsequent renewal terms. Sourcing and vendor management leaders must negotiate and enforce strong price protection clauses to minimize the risk of unbudgeted price increases in software.

Table Of Contents
  • Key Challenges



  • Negotiate Strong Renewal Price Protection Clauses
    • Renewal Price Adjustment Models to Consider
  • Monitor and Enforce the Terms of the Price Protection Clause
  • Appendix 1: Calculation Details for Figure 1
  • Appendix 2: Common Indexes and How to Apply the CPI
    • Types of CPIs

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