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AWS Eases SaaS Contract Haggling

Amazon Web Services (AWS) has eased the process of upgrading and renewing Software-as-a-Service (SaaS) contracts from independent software vendors (ISVs).

These vendor offer their as-a-service wares -- for networking, storage, analytics and more -- in the AWS Marketplace in various plans, including free trials, usage-based pricing models, contracts that could last one, two or three years, and more.

In the SaaS contract scheme, the vendors can define parameters such as usage categories and contract length. AWS says users who avail themselves of usage-based and SaaS plans often start small and then seek to upgrade or renew early as workload expansions dictate. Now, that's easier to do.

"While the initial contract is still in effect, buyers can communicate with sellers to negotiate a new Private Offer that best meets their needs," said AWS spokesperson in a recent blog post. "The offer can include additional entitlements to use the product, pricing discounts, a payment schedule, a revised contract end-date, and changes to the end-user license agreement (EULA), all in accord with the needs of a specific buyer.

"Once the buyer accepts the offer, the new terms go in to effect immediately. This new, streamlined process means that sellers no longer need to track parallel (paper and digital) contracts, and also ensures that buyers receive continuous service."

The new functionality is now available to all SaaS vendors and users, applicable to SaaS contracts and contracts with consumption pricing.

About the Author

David Ramel is an editor and writer for Converge360.

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