Vendor Pressure Index (Preliminary Results): Renewal hotspot, loading unwanted AI
Summary
Preliminary results from the Vendor Pressure Index, launched in early May, reveal significant pressure on ITAM professionals, primarily during the renewal process rather than audits. While Broadcom and Oracle were expected, Adobe and Microsoft are also heavily implicated. Vendors are pushing AI infrastructure, framing it as productivity and security enhancements, often bundling unwanted AI features or increasing prices. Key pressure tactics include deliberately obscuring usage data, imposing unreasonable reporting requirements, and making frequent, uncommunicated changes to licensing terms, sometimes penalizing late renewals. This forces ITAM teams into aggressive rationalization, evaluating AI alternatives, and managing increased overhead, often without sufficient time or visibility to make informed decisions, leading to costly and challenging migrations.
Key takeaway
For IT Asset Managers navigating renewals, anticipate vendors pushing unwanted AI bundles and obscuring usage data. You must proactively scrutinize licensing changes and demand clear telemetry to avoid costly, forced migrations. Prepare to aggressively rationalize existing platforms and explore alternative AI solutions to mitigate unexpected price increases and ensure your organization maintains control over its software stack.
Key insights
Vendors are leveraging renewal processes to push unwanted AI bundles and increase costs, impacting ITAM teams with obscured usage data and changing license terms.
Principles
- Vendor pressure shifts from audits to renewals.
- AI infrastructure costs drive aggressive vendor tactics.
- Lack of usage visibility hinders informed decisions.
In practice
- Rationalize software aggressively due to AI bundles.
- Evaluate AI alternatives for forced integrations.
- Scrutinize vendor licensing changes at renewal.
Topics
- Vendor Pressure Index
- IT Asset Management
- Software Licensing
- AI Bundling
- Renewal Negotiations
- Usage Telemetry
Best for: CTO, VP of Engineering/Data, Executive, IT Professional, Consultant, Director of AI/ML
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Editorial summary, takeaway, and curation by AIssential. Original article published by ITAM Review.