Increasingly, there has been a push by firms purchasing services to move towards consumption-based pricing. Accompanying this move is an additional desire to reduce the length of contracts. Ideally, you should only pay for what you use; and when you stop using it, you stop paying for it. Although this is what traditional contracts purport to offer, the reality is far from this seemingly natural and beneficial state. Most traditional contracts create buyer lock-in and require some form of take or pay.
Striking the Right Balance: The Dynamics of Cloud Discounts in Enterprise Software Agreements
To prevent the pitfall of aggressively pursuing discounts on cloud platforms without [...]