TECH BUYER Mar 2020 - Tech Buyer Presentation - Doc # US46125220

SaaS Negotiation Playbook

By: Aaron PolikaitisVice President of Research, Vendor Sourcing and Management

On-line Presentation

Abstract

This IDC Tech Buyer Presentation provides a checklist for procurement professionals.

IDC forecasts that by 2023, the SaaS delivery model will represent 53% of total vendor revenue in the application primary market. See The SaaSification of IT: 2019 Update (IDC #US45241219, September 2019). The complexity of on-premises software license models challenges the most sophisticated procurement professionals. The introduction of the SaaS delivery model promised to simplify this complexity. Although this may have been the case initially, over time, SaaS license models have become as complex and, in some cases, more so. As a result, most enterprises' IT, sourcing, procurement, and finance organizations are challenged with managing SaaS negotiations, consumption, compliance, and financial forecasting. This IDC Tech Buyer Playbook provides a checklist for procurement professionals for addressing these challenges. Best practices from leading enterprises include the following takeaways:

  • Successful vendor/client relationships start with a solid contractual foundation that is fair to both parties.
  • The complexity of SaaS license terms and contractual frameworks introduces significant risks and financial uncertainty.
  • A common framework/playbook is critical to mitigate such risk and financial uncertainty.

This IDC Tech Buyer Playbook provides a procurement checklist for addressing these challenges. According to Aaron Polikaitis, IDC vice president of research, Vendor Sourcing and Management, "To succeed, enterprises must establish and adopt a SaaS negotiation playbook that is widely adopted by enterprise procurement professionals, educate internal business partners and establish wide support for the playbook strategy, and leverage playbook elements as part of all RFPs, negotiations, and renewals."


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