In the cutthroat arena of Managed Services Provider (MSP) contracts, the fine print can make or break your deal. With global IT services spending soaring to $1.3 trillion in 2024, per Gartner, enterprises are betting big on outsourcing—but vague terms, hidden costs, and rigid agreements can turn that bet into a bust. At NET(net), we’ve seen the fallout: clients trapped in inflexible contracts, blindsided by fees, or left hanging during critical outages. This isn’t just about signing a deal; it’s about crafting a contract that maximizes value, slashes risk, and keeps your MSP in check. Here’s our battle-tested Top 10 checklist for MSP ...
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Bottom Line Up Front: The shift from seat-based to consumption pricing at enterprise software giants isn't about "aligning value with usage", it's a calculated move to extract more revenue while making costs less predictable and harder to control. Don't let the marketing mysticism fool you. The Marketing Fairy Tale vs. Reality Let me translate the vendor spin for you. When Salesforce announces "When we look at pricing, it will be on a consumption basis... about $2 per conversation" for their Agentforce AI, they're not being altruistic. They're not "aligning cost with value delivered." They're solving a revenue problem. Here's the ...
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At NET(net), we’re constantly asked: “Can I terminate my agreement with XYZ Supplier mid-term?” The short answer? It’s tough—but not impossible. As you’ll see in the attached chart, termination rights for enterprise customers with technology vendors fall into one of five categories, as outlined below: Termination for convenience is rare due to vendor resistance, as it undermines revenue stability. TermScout notes 82% of customer forms seek this right, but negotiated contracts often exclude it, especially in SaaS or long-term deals. However, large enterprises with strong leverage (e.g., Fortune 100 companies) may secure this right in some ...
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Cybersecurity Threats and Ransomware Attacks: A Growing Menace Preface The days of relying on personal relationships to secure favorable deal terms are over. IT vendors are aggressively shifting their focus towards capturing a larger share of your value chain and more of your wallet share. Their maneuvers include: Subscription-based pricing models: IT vendors are locking customers into recurring fees with additional consumption costs, making it difficult to predict and control long-term technology costs. Reduced flexibility: Subscription access often comes with limited customization options, and tiered access that requires you to subscribe ...
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Revolution or Obsolescence: Tech Vendors Are Redefining Industry Preface The days of relying on personal relationships to secure favorable deal terms are over. IT vendors are aggressively shifting their focus towards capturing a larger share of your value chain and more of your wallet share. Their maneuvers include: Subscription-based pricing models: IT vendors are locking customers into recurring fees with additional consumption costs, making it difficult to predict and control long-term technology costs. Reduced flexibility: Subscription access often comes with limited customization options, and tiered access that requires you to subscribe ...
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Workday Sentiment Analysis Preface The days of relying on personal relationships to secure favorable deal terms are over. IT vendors are aggressively shifting their focus towards capturing a larger share of your value chain and more of your wallet share. Their maneuvers include: Subscription-based pricing models: IT vendors are locking customers into recurring fees with additional consumption costs, making it difficult to predict and control long-term technology costs. Reduced flexibility: Subscription access often comes with limited customization options, and tiered access that requires you to subscribe to more expensive levels that offer ...
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The Insidious Mask of the Technology Channel Preface The days of relying on personal relationships to secure favorable deal terms are over. IT vendors are aggressively shifting their focus towards capturing a larger share of your value chain and more of your wallet share. Their maneuvers include: Subscription-based pricing models: IT vendors are locking customers into recurring fees with additional consumption costs, making it difficult to predict and control long-term technology costs. Reduced flexibility: Subscription access often comes with limited customization options, and tiered access that requires you to subscribe to more expensive ...
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Top 5 Ways to Expose Traps and Quash Hidden Costs Executive Summary Investing in technology is crucial for business success. Whether it is to modernize, digitally transform, and/or to improve organizational performance; but hidden costs and vendor manipulations often erode expected value. This blog explores five actionable strategies—detailed spend analysis, price benchmarking, supplier audits, contract reviews, and optimization tools—that can help client organizations expose cost traps, and quash hidden costs, ensuring maximum value from their technology investments. By addressing these challenges, businesses can significantly reduce costs, ...
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SaaS Subscription Squeeze Preface The days of relying on personal relationships to secure favorable deal terms are over. IT vendors are aggressively shifting their focus towards capturing a larger share of your value chain and more of your wallet share. Their maneuvers include: Subscription-based pricing models: IT vendors are locking customers into recurring fees with additional consumption costs, making it difficult to predict and control long-term technology costs. Reduced flexibility: Subscription access often comes with limited customization options, and tiered access that requires you to subscribe to more expensive levels that offer ...
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Teradata Surviving on Mysticism and Tyranny Preface The days of relying on personal relationships to secure favorable deal terms are over. IT vendors are aggressively shifting their focus towards capturing a larger share of your value chain and more of your wallet share. Their maneuvers include: Subscription-based pricing models: IT vendors are locking customers into recurring fees with additional consumption costs, making it difficult to predict and control long-term technology costs. Reduced flexibility: Subscription access often comes with limited customization options, and tiered access that requires you to subscribe to more expensive ...
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