software agreements are vital in the successful adoption of SaaS? – IT Forum 365

traditional software manufacturers are now in full transition their business models for software as a service ( SaaS , its acronym in English). However, conventional licensing programs and contracts continue to be an essential mechanism for customers to agree to trade agreements and medium-term commitments.

In his blog, Stephen White, research director for IT Gartner indicates that while manufacturers take advantage of the annual subscription and renewal fees associated with their SaaS models, several years of high-value contract model provides opportunities to leverage purchasing power and facilitates negotiating terms required by customers .

According to him, the perpetual model, in which the optional maintenance prevails, many organizations have reevaluated inclusions prior to renewal. Thus, the initial commitment and negotiating the terms of SaaS are probably more critical than any similar software trading.

The expert advises decision makers and stakeholders to pay attention to fall on module ‘sleepwalker to the cloud “phenomenon in which initial smaller commitments without negotiated terms are expanded gradually with limited buyer protection. This creates risks in terms of costs and in relation to contractual issues. Shares classified as shadow IT are examples glares of this phenomenon.

White recommends that companies verify the preparation and prioritization of the use of software in the cloud – facilitated by a project that works through measurement data to the solution, replacement of perpetual subscriptions, as well as projections use.