In this report, you will find dozens of insights around the challenges of pursuing digital growth while controlling costs. Among predictions and recommendations, per understanding from the report:
- Prediction: “SaaS vendors foster application ecosystems to increase the availability of niche, add-on functionality, resulting in increased lock-in for existing customers buying from these partners.”*
- Prediction: “Each year, support costs for legacy software increase, while the benefits gained from that support decrease, leading to more organizations seeking lower-cost third-party support options.”*
- Recommendation: Enterprises that have identified applications that they do not yet wish to move to the cloud should evaluate third-party support as an alternative to direct vendor support in order to maintain high-performing, existing software
- Recommendation: “For those applications that you do not yet want to move to the cloud, evaluate third-party support as an alternative to direct vendor support in order to help fund future innovation.”*
This must-read from Gartner enables IT leaders and sourcing/procurement/vendor management personnel to identify the trends and impacts of pursuing digital transformation in tandem with cost control.
Reference: *Gartner, Inc. “Predicts 2020: Negotiate Software and Cloud Contracts to Manage Marketplace Growth and Reduce Legacy Costs.” December 18, 2019.
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