Gartner Research

Cost-Effectively Scale Your Digital Business by Negotiating API Pricing in Software and SaaS Contracts

Published: 16 February 2018

ID: G00347600

Analyst(s): Jo Liversidge , Mark O'Neill , Bill Ryan

Summary

Organizations are increasingly reliant on third-party APIs. Sourcing and vendor management leaders who are unprepared for negotiating API consumption pricing place digital business growth in jeopardy. Securing optimal API contract terms is essential to contain costs and risks.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Reduce the Risk of Unexpected Costs by Identifying and Proactively Negotiating All Direct and Indirect API-Related Costs
  • Mitigate the Risk of Demand Exceeding Forecast and Adding Significant Unbudgeted Costs by Negotiating API Call Pricing Tiers
  • Negotiate Pricing Based on Demand and Business Outcomes to Better Align Costs and Value
  • Minimize the Additional Unbudgeted Costs and Risks in API Contracts by Negotiating Other Key Terms

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