Gartner Research

Optimize Cost and Risk as These Software and SaaS Pricing Metrics Emerge to Enable Digital Business

Published: 14 June 2019

ID: G00321364

Analyst(s): Bill Ryan , Lori Samolsky , Jo Liversidge

Summary

Software and SaaS providers are introducing new pricing metrics as digital use cases multiply. To predict costs and minimize risk, sourcing, procurement and vendor management leaders must become experts at negotiating pricing metrics based on business size, transaction volume and business outcomes.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Size-Based Metrics: Negotiate Precise Definitions and Make Contractually Explicit If/When/How Growth Triggers Additional Fees
  • Transaction-Based Pricing Metrics: Map to Your Business Processes to Accurately Measure Required Unit Volumes
  • Outcome-Based Metrics: Experiment by Creating Incentives for Both Parties That Make Costs Predictable and Minimize Risk

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