Stubborn SaaS prices
Rising costs of Software-as-a-service products to financial service institutions continue to niggle away at European financial institution bottom line revenues. Despite a noticeable slowdown in EU inflation this year, SaaS pricing inflation is relatively unchanged in comparison to last year. According to SaaS and cloud optimisation platform Vertice, the increase in SaaS spend is affecting startups more acutely than larger organisations, with 100-500 employees are spending US$6.7k on SaaS per employee, compared to just US$4.7k in enterprises
In order to mitigate rising prices, Vertice purchasing manager Lily Siddiqi suggests two key factors for financial institutions to consider; being wary of auto-renewing contracts which lock them into prices, and unknowingly agreeing to price-uplift clauses, which allows vendors to adjust their fees without consultation.