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I wish the world operated this way, but unfortunately very large organizations, like Fortune 1000 companies has Universities have entire departments dedicated t
by bradgessler 7y ago
I wish the world operated this way, but unfortunately very large organizations, like Fortune 1000 companies has Universities have entire departments dedicated to people evaluating and purchasing software.
Think of it this way, when you are paying people to acquire software for your organizations, they justify a salary. To do that, they need to show they’re adding value to the process. The easiest way of them doing that is to show they negotiated a chunk of dollars that in aggregation exceeds their salary, which means they need to show they knocked $10k, $25k, $100k here and there off of software. Selling it for $10k won’t get them the numbers they’d like to see.
The more valuable aspect of procurement is security evaluations. Somebody has to make the SaaS software that an org is adopting will be around for a while, is reasonably secure, and not some fly by night operation.
Only companies that operate at a massive scale can offer pricing like AWS, but until niche SaaS software can become more of a commodity (or the evaluation of it), the seemingly odd world of “Enterprise for 2 magnitudes more” will persist to make it worth the buyers time.