Published: 08 January 2024
Summary
Integration-platform-as-a-service proposals are difficult to compare due to the variety of pricing metrics and a series of hidden costs. Sourcing, procurement and vendor management leaders can compare iPaaS proposals with a scenario-based assessment and negotiate key terms to reduce future costs.
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Overview
Key Findings
There is no common pricing metric used by all vendors in the market, making proposals from different integration platform as a service (iPaaS) providers almost impossible to compare.
Initial total costs of iPaaS acquisition calculations are frequently underestimated due to hidden costs associated with development and test environments, production availability, disaster recovery (DR), or fees for higher tiers of support.
Costs often escalate beyond the base agreement because usage is difficult to predict, and without negotiated pricing protections, customers face significant increases at renewal.
Recommendations
Sourcing, procurement and vendor management (SPVM) leaders contracting for iPaaS solutions should:
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