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SaaS Procurement, Negotiation & Cost Optimization
Rating: 4.1 out of 5(33 ratings)
1,727 students

SaaS Procurement, Negotiation & Cost Optimization

SaaS procurement essentials: negotiate contracts, control renewals, optimize licenses, and reduce subscription costs.
Created bySergii Dovgalenko, FCIPS
Last updated 8/2026
English
English [Auto],

What you'll learn

  • Build a practical SaaS sourcing and negotiation strategy using pricing, licensing, TCO, and market analysis.
  • Identify unused licences, overlapping tools, renewal risks, price increases, and vendor lock-in.
  • Evaluate SaaS proposals using ACV, TCV, NPV, usage metrics, licensing models, and contract terms.
  • Negotiate SaaS renewals with stronger levers for pricing, scalability, service levels, compliance, and exit.

Course content

3 sections • 29 lectures • 1h 37m total length

  • Introduction: SaaS Industry Trends and Procurement Challenges1:16

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

  • SaaS Performance Benchmarks and Negotiation Levers2:27

    SaaS industry performance benchmarks and the commercial levers they create for buyers.

  • G2 Report: “AI — Always Included” (2025)1:45

    Examine key findings from G2’s 2025 report and their implications for SaaS procurement, licensing, and cost control.

  • Microsoft AI Licensing and Software Inflation: Practice #16:06

    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: Compare ACV, TCV and NPV in SaaS Deals7:01

    Compare annual contract value, total contract value, and net present value to evaluate SaaS proposals and negotiation options.

  • Buy Classes in the Buygrid Framework4:35

    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.

  • Applying the Buygrid Framework to Supplier Selection3:31

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

  • NIST Cloud Computing Model: What SaaS Buyers Need to Know3:12

    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.

  • Comparing SaaS, PaaS and IaaS2:53

    Three types of cloud services as per NIST standards.

  • Dropbox Case Study.2:58

    Dropbox shifts 90% of operations from AWS to a custom infrastructure, using volume discounts, performance clauses, and long-term partnerships to save $75 million and improve latency and uploads.

  • SaaS Licensing Units, Usage Metrics and Cost Drivers4:33

    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: Evaluate the Workday Licensing Model3:10

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

  • SaaS: Product, Subscription or Service?2:13

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

  • SaaS Maintenance and Support: Commercial Implications3:49

    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.

  • Software Asset Management and ISO/IEC 19770-1:20175:40

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

  • SAP and Oracle Licensing Disputes: Lessons for Buyers3:35

    Explore SAP and Oracle licensing disputes to show how indirect access, named-user terms, and virtualization drive compliance, audits, and negotiations, guiding proactive, flexible licensing strategies.

  • Thank you for Studying!0:07

Requirements

  • No prior SaaS procurement or negotiation expertise is required
  • Basic familiarity with subscription software is useful but not essential
  • An interest in controlling software costs, improving contracts, or managing SaaS suppliers

Description

SaaS costs rarely increase because of one bad purchasing decision. They accumulate through unused licenses, weak renewal controls, overlapping subscriptions, automatic price increases, uncontrolled scaling, and limited visibility of actual usage.

This practical course shows procurement, commercial, IT, and finance professionals how to control SaaS spend, prepare for renewals, negotiate stronger contract terms, optimize licensing, and reduce vendor dependency.

Unlike theoretical procurement training, this course focuses on practical commercial application.

You will work with SaaS procurement scenarios, negotiation considerations, cost-optimization approaches, and contract risks that arise in real-world business environments.

Common SaaS Procurement Problems This Course Addresses

This course helps you understand and respond to problems such as:

  • Uncontrolled SaaS spending and subscription growth

  • Weak renewal negotiations and automatic price increases

  • Vendor lock-in and reduced 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 buying

  • SaaS contract risks, compliance issues, and vendor dependency

What You Will Learn

By the end of the course, you will understand:

  • SaaS procurement fundamentals and commercial models

  • How SaaS differs from traditional software procurement

  • How to prepare for SaaS renewals and negotiations

  • How to identify cost optimization opportunities

  • How to improve license control and subscription governance

  • How to manage scale-up, scale-down, and usage-based pricing risks

  • How to assess SaaS vendor dependency, contract exposure, and operational risk

  • How procurement can create value beyond price reduction

Topics Covered

The course covers practical SaaS procurement topics, including:

  • SaaS pricing structures and subscription models

  • Pay-as-you-go and consumption-based licensing

  • SaaS contract negotiation considerations

  • Renewal governance and price increase control

  • Cost predictability and license optimization

  • Scale-up and scale-down management

  • SaaS TCO and benefit realization

  • Security, compliance, and operational risk considerations

  • Vendor dependency and lock-in risks

  • Practical SaaS procurement exercises and case examples

Additional Resource Included

The course includes a downloadable SaaS Cost Optimization Checklist covering:

  • SaaS renewal governance

  • ITAM and license control

  • SaaS negotiation preparation

  • Year-on-year 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

This course is suitable 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

  • Finance, IT, and operations professionals involved in SaaS purchasing decisions

  • Anyone seeking a practical understanding of SaaS procurement and commercial control

Who This Course Is Not For

This course is not designed for:

  • Software developers seeking technical SaaS implementation training

  • Users looking for product-specific software tutorials

  • Learners expecting deep technical cloud architecture training

  • Anyone looking for a generic procurement theory without a practical SaaS application

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.

You will be better prepared to control SaaS spend, challenge renewals, improve vendor leverage, manage license usage, and reduce the hidden costs created by uncontrolled software subscriptions.

Who this course is for:

  • Procurement and IT procurement professionals responsible for software sourcing and renewals
  • Category managers managing SaaS spend, licensing, contracts, or vendor relationships
  • Commercial, contract, finance, and IT professionals involved in SaaS purchasing decisions
  • Professionals seeking practical SaaS negotiation and cost-control methods

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