Gartner Research

Devise an Effective Cloud Contract Autorenewal Clause Strategy Using the Z Path Decision Matrix

Published: 04 March 2019

ID: G00376471

Analyst(s): Eugene Quillen

Summary

Autorenewal decisions may be the monsters hiding in the deep of SaaS contracting. IT sourcing, procurement and vendor management leaders that leverage a risk management approach to the SaaS autorenewal decision minimize the potential for catastrophic operational impact and lock-in.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Make a Conscious Informed Choice on SaaS Autorenewal Clauses Using a Risk Assessment of Options
    • Quadrant 1: Require Autorenewal
    • Quadrant 2: Improve Contract Management Capability to Support Autorenewal
    • Quadrant 3: Use Discretionary Autorenewal
    • Quadrant 4: Limit Autorenewal
  • Minimize a Vendor’s Future Disruptive Leverage
  • Limit Negative Impact From Unwanted SaaS Contract Autorenewal With an Automatic Renewal Term Not Exceeding One Year

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