The EU Data Act: The End of Long-Term Software Deals
Introduction: A Wake-Up Call for Software Buyers
The EU Data Act has quietly redefined how companies should think about software procurement. By introducing real-time data portability requirements, it promises greater freedom for businesses to move between providers. But with freedom comes risk-especially for companies locked into multi-year software contracts.
For finance and procurement leaders, this isn’t just a regulatory footnote. It’s a turning point. Long-term commitments are now less attractive, vendors will adjust their playbooks, and the winners will be the companies ready to embrace flexibility and smarter software negotiations.
What Is the EU Data Act?
The EU Data Act, adopted in 2023, is part of the European Union’s broader digital strategy. Its aim is to ensure fairness in the digital economy by granting businesses and individuals the right to access and move their data across platforms in real time.
In practical terms, this means that SaaS providers can no longer hold customer data hostage. If you want to switch vendors, your data should move with you—quickly, seamlessly, and without hidden obstacles.
This shift, while designed to empower users, has major ripple effects on how software contracts are structured.
Why Long-Term Software Contracts Are Now Riskier
Traditionally, software vendors have relied on multi-year lock-ins to secure predictable revenue. But the Data Act undermines that logic. If customers can easily switch providers, the incentive to commit to three- or five-year contracts disappears.
The unintended consequence? Long-term software contracts just got riskier for buyers.
- Greater switching potential: Companies are less “stuck” with one provider.
- Vendor response: Expect vendors to shorten contract terms, offer more flexible renewals, or charge a premium for short-term deals.
- Pricing dynamics: Long-term discounts may shrink, while month-to-month pricing rises.
This regulatory change effectively kills the rationale for rigid, long-term software commitments.
What This Means for Software Buyers
For procurement and finance teams, the EU Data Act is a wake-up call:
- Rethink contract strategy – Multi-year savings might no longer outweigh the risk of inflexibility.
- Plan for renegotiations – Vendors will adapt their terms, and buyers need to be ready to push back.
- Stay agile – The ability to pivot quickly between providers will become a competitive advantage.
- Align with compliance – Companies must ensure their SaaS contracts don’t inadvertently clash with data portability obligations.
The winners in this new era will be companies that embed flexibility into procurement - treating software not as a sunk cost, but as a dynamic portfolio to be managed strategically.
How Sastrify Helps Navigate This New Era
This is where Sastrify’s model shines.
- Dynamic Procurement: We help companies avoid being trapped in outdated, rigid contracts by negotiating smarter terms.
- Contract Flexibility: Our experts ensure every SaaS deal leaves room for change, reducing exposure to vendor lock-in.
- Vendor Negotiations: We leverage benchmarks and market insights to secure the best terms - even as vendors shift their pricing models.
- Compliance Alignment: With the EU Data Act reshaping obligations, Sastrify ensures procurement strategies stay compliant while maximizing ROI.
In short, Sastrify helps finance and procurement leaders turn regulatory change into opportunity.
Conclusion: Rethink Procurement Now
The EU Data Act and Software are on a collision course with outdated procurement practices. Long-term contracts no longer offer the safety or savings they once did. Instead, flexibility, compliance, and negotiation power are the new priorities.
For finance leaders, the question is clear: will you wait for vendors to dictate new terms, or proactively build a procurement strategy that puts you in control?
With Sastrify, you can do the latter - navigating the uncertainty of the AI Data Act with confidence and precision.
👉 Book a demo today to see how Sastrify helps you future-proof your software procurement.
