In managing costs for Data & Analytics Tools in the cloud that is subscription based, what is the generally expected annual price increase on the base subscription metric (whether on demand (capacity/compute/credits) or not)? 5-10%? or 10-15% or 15 to 20% or larger?
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Director of Data in Manufacturing2 months ago
Hi Rosemary, it strongly depends on your contract model and negotiation. In my experience, most of my contracts run a kind of 8% uplift, but I have several models where I negotiated a long term commitment (3 to 5 years) where I get rid of that and in some cases even get additional benefits. The only risk to consider here is your capacity to consume the volume negotiated.
Hi Rosemary, you raise a good question that is hard to untangle. I see 8 - 12% generally. However, that sometimes comes with new products that software vendors give you for "free" and/or restrictions from previous license restrictions... These new terms to the license typically make it very difficult to understand net new cost versus new feature costs. I agree with Ricardo that you always have a chance to agressively negotiation a longer term at a discounted price especially near their year end...