Published: 16 August 2023
When purchasing software and SaaS, software engineering leaders should weigh the importance of cost (product, labor, training, etc.) with tool preference and collaborate with the sourcing function to create a playbook, create a three-year forecast and include clauses to ensure leverage at renewal.
Software engineering leaders may fail to optimize software contracts when they don’t leverage sourcing, procurement and vendor management (SPVM) departments. SPVM now caters more to functions and business units with purchasing authority and has resources that can assist when making software and SaaS purchases.
Without knowing the total cost of an application, including acquisition, labor, hardware, cloud, and other costs, it is difficult to decide whether to leverage an existing tool or purchase a new one.
Planning is the most important step in the purchasing process — knowing requirements over three years is paramount to getting the best deal.
Organizations lose
Analysts:
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