Predicts 2022: SaaS Dominates Software Contracting by 2026 - and So Do Risks

Gartner® -Report | What you need to do in 2022 for the big SaaS transition

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Gartner® predicts that by year-end 2025, a majority of the top 20 software vendors will sunset sales of new perpetual software, requiring shifts to their SaaS or subscription offerings, increasing costs by at least 35%. Organizations that don’t want to use SaaS will not be immune from significantly higher, SaaS-like pricing, as tech providers move from perpetual licenses to committed subscriptions and pricing more closely emulates SaaS offerings.

The new Gartner report from December 2021 “Predicts 2022: SaaS Dominates Software Contracting by 2026 - and So Do Risks” provides a forecast on how major software vendors are likely to shift to SaaS only, how this might impact your company, and what you can do now to lower risks and avoid higher software expenses.

We believe this Gartner report will empower leaders from Sourcing, Procurement and Vendor Management to:

  • Identify and secure key on-premises software in their organizations
  • Assess the impact and plan the transition to subscription models
  • Avoid an increase of at least 35% in their software licensing fees

Gartner, Predicts 2022: SaaS Dominates Software Contracting by 2026 - and So Do Risks, 26 April 2021, Michael Silver, Mike Tucciarone, James Smith, Marie Sienkowski, Hannah Decker, Jo Liversidge, Roberto Sacco, Eugene Quillen

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