Gartner Research

Mitigate Unforeseen SaaS Costs by Negotiating Fees for Support, Sandboxes and Other Key Variables

Published: 29 July 2019

ID: G00402352

Analyst(s): Jo Liversidge, Dawn Hubbard

Summary

High unbudgeted fees can result from failure to negotiate all subscription-related costs before signing SaaS contracts. Sourcing, procurement and vendor management leaders must uncover hidden costs upfront and negotiate prices for extras, such as storage, support, sandboxes, languages and API calls.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Document Storage Entitlements in the SaaS Contract, and Negotiate Incremental Pricing to Cover Additional Storage Needs Midcontract
  • Negotiate Any Additional SaaS Support Options Upfront, and Include a Detailed Description in the Contract
  • Negotiate Extra Sandbox Requirements Upfront, and Document Costs Clearly in the Contract
  • Negotiate Any Additional Identified Services or Capabilities, Such as Language Packs, Bandwidth and API Calls

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