Deciding between renewing existing software versus purchasing a new one

Renewing tools is akin to switching jobs. Change is always difficult, but necessary to grow. It’s important that you recognize consistent value, or a slump. 

Now how do you do that with your tech stack?

Are there any shiny new tools in the market? 

Is it worth it to shift your entire workflow to accommodate a new tool? 

In this edition, we share how to decide between:

Renewing existing software versus purchasing a new one

🧠 What the Experts Recommend:

• Use a product renewal checklist
• Diligently track your SaaS subscriptions and tool usage

1. Use a product renewal checklist for every tool

Avery Yip, CEO of an integrations platform, Vessel, shares that one should always be exploring options given the changing needs of your business and the evolution of products in the market.

Here's a short list of questions to check off when it’s time to renew:

1. What is the most painstaking part of using this product?
2. Does this tool integrate well with the software I use?
3. Is this tool seeing usage across the team?
4. If it's a tool related to engineering, is it core to the success of your business? In this case, you might consider building in-house.
5. Is there an alternate product that solves my needs better and/or at a better price?

Once a tool is purchased, it becomes harder to remove because processes are built on top of them. SaaS sprawl is a big issue across every company and being cognizant about the tools you use and your spend upfront is the best way to maximize your SaaS portfolio.

2. Diligently track your SaaS subscriptions and tool usage 

Klaus-M. Schremser, CRO at Usersnap, a user feedback platform, looks at software renewals or cancellations as opportunities to 

• rework the goals you want to achieve with this software, 
• renegotiate your contracts, 
• and cancel unused subscriptions. 

First: Implement a SaaS subscription management system, (either via a specific tool or a good old spreadsheet.)

Second: Consider these before going into a renewal or consider hiring a new software vendor.

1. Review your current usage of the software
2. Check upgrade/downgrade options (or changing from monthly to yearly payment). How many licenses does your company own?
3. Talk to the responsible person about results, satisfaction, and support tickets
4. Re-read the current contract
5. Check the most obvious competitors
6. Re-validate that the software still complies with current security, legal and governance standards
7. Evaluate the level of integration and migration effort
8. Reassess your goals and the future development of the software vendor
9. Prepare for renewal negotiations
10. Talk to the vendors anyways. Vendors are interested in keeping you. Maybe, they offer you a deal or upgrade.

Note: Consider all options with the existing tool because the old saying is true: “Never touch a running system.”

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