Gartner Information Technology Research

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

Published: 11 February 2020

ID: G00465622

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

Summary

Organizations are reliant on third-party APIs to enable digital business. Sourcing, procurement and vendor management leaders who are unprepared for negotiating API consumption pricing put cost containment in jeopardy. Securing optimal API contract terms is essential to contain costs and risks.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Mitigate the Risks of Demand Exceeding Forecast and Significant Unbudgeted Costs by Negotiating API Call Pricing Tiers
  • Reduce the Risk of Unexpected Costs by Identifying and Negotiating Secondary Metric API-Related Costs
  • Negotiate Pricing Based on Demand and Business Outcomes to Better Align Costs and Value

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