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SaaS Procurement, Negotiation & Cost Optimization
Rating: 4.0 out of 5(29 ratings)
1,716 students
Created bySergii Dovgalenko, FCIPS
Last updated 6/2026
English

What you'll learn

  • Overview of the modern SaaS negotiations pillars, trends, and challenges
  • Critical problems in SasS negotiations like the information asymmetry between buyers and sellers
  • Key aspects of negotiations, e,g,, licensing model and a sourcing strategy
  • Practical cases and examples of negotiations with well-known vendors

Course content

3 sections • 28 lectures • 1h 37m total length

  • Introduction (2024 SaaS industry trends)1:16

    A few essential facts about the SaaS industry and the vital importance of demand and asset management.

  • 2024 SaaS Performace Benchmarks and Negotiation Levers2:27

    2024 SaaS industry performance benchmarks and related negotiation levers.

  • G2 Report "AI: Always Included" (2025)1:45

    Capture critical insigths in SaaS procurement from G2 report (2025). 

  • Microsoft AI Licenses and Software Insflation. Practice #1.6:06

    This session unpacks Microsoft’s AI licensing through real-world usage of Power Automate, AI Builder, and Copilot Agents. We explore what each Copilot actually does (and costs), how AI features drive silent software inflation, and what smart organizations do to stay in control. From message-based billing to license segmentation and cost governance — you’ll leave knowing exactly what to ask, what to monitor, and what not to overspend on.

  • SaaS Vendor Quarterly Report Analysis3:42

    Atlassian quarterly report analysis to prepare for negotiations.

  • Modern dynamics of SaaS negotiations5:23

    SaaS negotiations are so much more than just price wars with suppliers. We will touch upon critical pillars, opportunities, and challenges of SaaS negotiations.

  • Information asymmetry between a buyer and a seller in SaaS negotiations.2:43

    We will analyze a classical economic problem of the information asymmetry between buyers and sellers in the SaaS context.

  • Practice #2 : TCV, ACV, and NPV in SaaS context.7:01

    We will explain how the Annual Contract Value (ACV) leads to the NPV benefit, so one may use it in SaaS negotiations.

  • Buyclasses from the Buygrid Theory.4:35

    The Buygrid Framework (1967) classical procurement theory analyzes the industrial (B2B) buying behavior and business processes.

    It presents industrial buying not as a single event but as an organizational decision-making process where multiple individuals decide on a purchase.

  • Buygrid Theory Applied to the Supplier Selection.3:31

    We will employ the Buygrid Theory to identify different supplier selection scenarios.

  • NIST Cloud Computing Model3:12

    Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.

  • Cloud Services2:53

    Three types of cloud services as per NIST standards.

  • Dropbox Case Study.2:58
  • Software license units of measure4:33

    Understanding the SaaS sizing logic is as vital as knowing the license cost. We will provide some critical hints and discuss the license units of measure.

  • Practice #3: Workday licensing model3:10

    Workday Work Order demonstrates using FSE (Full Service Equivalent) and a few more valuable tips for your SaaS negotiations.

  • Product vs. Service2:13

    We will explain the SaaS transformation from a commodity into a complex technology service.

  • Software maintenance and support3:49

    Although support and maintenance are included in the SaaS subscription fees, there are some aspects we have to be mindful of, e.g., perfective and adaptive maintenance.

  • Importance of the Software Asset Management and ISO 19770-1:2017 Standard5:40

    We will briefly touch upon the ITAM Framework of digital asset management and its vital importance.

  • SAP and Oracle Licensing Disputes.3:35
  • Thank you for Studying!0:07

Requirements

  • Basic understanding of cloud computing services
  • Any experience in SaaS negotiations to recognize familiar situations and issues
  • Willingness and capability to learn

Description

Most organizations overspend on SaaS.

Poorly negotiated renewals, unused licenses, weak vendor leverage, uncontrolled scaling, overlapping tools, and opaque pricing models create high hidden operational costs.

This course explains how SaaS procurement and vendor negotiations work in practice. You will learn how to reduce SaaS costs, negotiate stronger commercial terms, improve license control, manage renewals more effectively, and avoid common SaaS procurement mistakes.


Unlike highly theoretical procurement training, this course focuses on practical commercial application, real SaaS procurement scenarios, vendor negotiation approaches, and operational cost optimization.


COMMON SaaS PROCUREMENT PROBLEMS THIS COURSE ADDRESSES


• Uncontrolled SaaS spending and subscription growth
• Weak renewal negotiations and automatic price increases
• Vendor lock-in and limited commercial leverage
• Poor license visibility and unused subscriptions
• Difficulty comparing SaaS pricing models and contract structures
• Limited procurement involvement in SaaS purchasing decisions
• Scaling problems caused by rapid SaaS adoption
• Weak governance over decentralized software procurement
• Challenges with SaaS contract terms, compliance, and vendor dependency


WHAT YOU WILL LEARN

• SaaS procurement fundamentals and SaaS commercial models
• Differences between SaaS and traditional software procurement
• SaaS negotiation approaches and contract considerations
• Cost optimization and license management strategies
• Security, compliance, and operational risk considerations
• Practical approaches to managing SaaS vendors and subscriptions


TOPICS COVERED

• SaaS pricing structures and subscription models
• Pay-as-you-go and consumption-based licensing
• SaaS contract negotiation considerations
• Cost predictability and license optimization
• Scale-up and scale-down management approaches
• Security and compliance considerations in SaaS environments
• Practical procurement exercises and SaaS procurement case examples


ADDITIONAL RESOURCE INCLUDED


The course includes a downloadable SaaS Cost Optimization Checklist covering:


• SaaS renewal governance
• ITAM and licence control
• SaaS negotiation preparation
• YoY price increase controls
• AI spend governance
• Vendor dependency and lock-in risks
• SaaS TCO and benefit realization
• Procurement participation in IT governance


WHO THIS COURSE IS FOR

• Procurement professionals involved in software and SaaS sourcing
• IT procurement and category managers
• Contract and commercial managers working with SaaS vendors
• Professionals responsible for SaaS cost management and vendor negotiations
• Anyone seeking a practical understanding of SaaS procurement processes


WHO THIS COURSE IS NOT FOR

• Software developers seeking technical SaaS implementation training
• Users looking for product-specific software tutorials
• Learners expecting deep technical cloud architecture training


RESULT


By the end of this course, you will understand how SaaS procurement differs from traditional software sourcing and how to manage SaaS commercial, contractual, operational, and cost considerations more effectively.

Who this course is for:

  • SaaS current or prospective buyers or IT vendor management experts
  • IT professionals engaged in the SaaS acquisitions
  • General business public
  • IT procurement professionals and rookies

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