Software giants may use eco projects as a cover for price rises

Date:
Thu, 01 Sep 2022 11:23:13 +0000

Description:
Study claims being eco-friendly could be one of the key contributors to increased software prices.

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If youre using dedicated collaboration software or productivity software for your business, chances are youll be paying a third-party to supply it. A new Gartner analysis suggests that significant price increases could be on the way, citing eco projects as a key contributor.

Over the next 36 months, software as a service (SaaS) vendors are said to be planning a significant increase in their prices, by as much as 20%.

The Gartner document, titled 3 Reasons Why SaaS Vendors Are Raising Prices
and What You Can Do About It suggests sustainability regulations could be introduced worldwide, meaning that many vendors will need to tweak the way they work to remain compliant. Software prices rising: energy prices

With a global focus on energy usage in a time where unit costs are higher
than ever, companies are likely to become more reliant on reducing their carbon footprint, by using green data centres for example. While this could receive part of the blame for increased prices, green data centres are specifically designed to use less energy. Because they are more efficient, running costs should be lower (after a potential capital outlay, which may be reflected in any software price hikes).

The solution? Gartner recommends chatting with your supplier to investigate its eco-credentials and to rule out greenwashing. It says that around two in five companies statements about sustainability were exaggerated, false, or deceptive, which could give you grounds to question the companys pricing. Software prices rising: labor costs Read more

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The past two years have been especially challenging, and a further turbulent period caused by Russias invasion of Ukraine has added further stress on global supply chains. The same source suggests that the invasion has reduced the worldwide tech talent pool by as much as 5%.

The solution? Gartner suggests looking into the companys workforce, and
better still, its use of automation. Check whether its committed to
maximising efficiency, which could help reduce its labor costs. Software prices rising: inflation

The third reason in the study places an emphasis on inflation, which is soaring globally. Unfortunately, theres very little for bargaining here. That said, check the percentage of increase somewhat matches the percentage of inflation, or that its not drastically disproportionate.

If youre committed to your current SaaS vendor, consider locking in for a longer time by renewing your contract early, rather than waiting for an auto-renewal price. This is the best project management software around

Via The Register



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Link to news story: https://www.techradar.com/news/software-giants-may-use-eco-projects-as-a-cover -for-price-rises/


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