With the average company using more than 96 SaaS tools (according to Sastrify data), it’s more important than ever to ensure you’re getting the best price on each individual contract.
But with so many vendors to negotiate with, you’ll need insight into how each one operates and how you can get the optimal price.
In this blog series, Sastrify is sharing our best advice for SaaS buyers to get the best contract terms during the annual subscription renewal process. Each of our tips is based on years of negotiating and procurement experience across our team of experts – so you can feel confident putting them into practice right away.
(Wouldn’t you prefer to hand the negotiating over to a team of experts so you can focus on what matters in your business? Sastrify is ready to help.)
Now, let’s talk about Datadog.
What is Datadog?
Datadog is an observability service that enables IT and DevOps teams to monitor cloud apps and infrastructure and determine their performance metrics. The company is a leader in IT observability and has around 20,000 customers.
Top tips for Datadog renewals
Whether you’re preparing to negotiate a Datadog renewal contract or you’re just starting out with the tool for the first time, these are our top 7 tips to get the best deal terms.
1. Get your commitment level right in your Datadog subscription
Choosing the right commitment level is the most important thing when negotiating your Datadog contract. Even if you know your usage is growing consistently, you shouldn’t overcommit from the start.
Committed volumes can be adjusted two to three times per year to optimize unit prices, but they can only be increased, not decreased. So, commit to the lower end of your forecasted volume range and increase as needed.
Need some help forecasting the right commitment level based on your past and current usage? Check out our guide to SaaS forecasting.
2. Choose between 4 payment options for Datadog annual commitments
If you do make an annual commitment with Datadog, you will have four different payment options; and there are pros and cons to each pricing tier. Choosing to pay in more installments will lead to a higher overall price, but it can provide flexibility if you have cash flow concerns.
The yearly pre-commitment payment options are:
- Annual – Price as quoted
- Biannual – Price plus 2.5%
- Quarterly – Price plus 5%
- Monthly – Price plus 10%
3. Ask your rep where the next pricing tier starts
Datadog’s pricing model scales up with volume. With this in mind, you can ask your sales rep for the next pricing tier threshold. That way, if you’re close to where the next pricing tier begins, you can consider the financial implications of increasing your volume to achieve a better unit price.
4. Consider paying Datadog costs via AWS Marketplace
Are you a member of the AWS Enterprise Discount Program (EDP)? This program enables organizations with a high annual AWS spend (typically $1 million or more) to receive contractually outlined discounts.
If you are in the EDP, you can do your Datadog billing via the AWS marketplace to put that spending toward your AWS commitment.
5. Signing up for the first time? Ask for a Datadog free trial (with enterprise or pro access)
If you’re new to Datadog and signing up for the first time, you can ask for a free period to try the platform out first. This decreases risk by ensuring the tool is right for your needs before becoming a paying customer.
6. Get discounted quotes from resellers
Another tip for first-time contract negotiations with Datadog: Consider approaching a reseller to get a discounted quote. Resellers will often have the best prices for first-time customers.
7. Get help from your Account Manager
Datadog Account Managers (AMs) and Account Executives (AEs) are very helpful. They can often offer ideas to optimize your commitment levels if you just ask.
In fact, they’re usually happy to set up regular short calls to monitor and adjust your commitment levels as needed.
Get the best Datadog contract with Sastrify
The advice in this piece for Datadog contract negotiations – as well as the tips in the rest of our renewals series – come from the SaaS procurement and negotiation experts at Sastrify. Our team is constantly negotiating with Datadog on behalf of our customers, so no one is better prepared to get you the best prices on the market for your contract.
Getting the best SaaS deal possible involves combining these tips with the right timing and preparation. Sastrify’s experts know exactly how and when to approach Datadog in negotiations so you end up with your ideal contract.
Find out how much you can save with our free SaaS savings calculator, and be sure to check back for the rest of our series on things you didn’t know about renewals for popular tools.
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