Gartner Research

SaaS Cloud Contract Management Must Be Strengthened to Reduce Risk and Minimize Unexpected Costs

Published: 16 August 2019

ID: G00389230

Analyst(s): Jo Liversidge, Edward Weinstein

Summary

SaaS solutions are becoming more common as enterprises seek to obtain IT functionality without having to build out technology. Sourcing, procurement and vendor management leaders must be aware of common pitfalls in SaaS adoption and how proactive management of SaaS providers can help to avoid them.

Table Of Contents
  • Key Challenges

Introduction

  • Neglecting the Nuances of a SaaS Acquisition Can Lead to a Host of Issues Once a Solution Is Implemented

Analysis

  • Define and Understand the Requirements and Obligations of Your SaaS Agreements
    • Usage Limits
    • Performance and Availability
    • Service Credits
    • Autorenewal and Other Time-Bound Obligations
    • Security and Continuity
  • Designate SaaS Vendor Management Whenever SaaS Applications Are Onboarded
  • Establish the Necessary Expertise to Ensure That Stakeholders Effectively Manage Their SaaS Contracts

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