The reasons for contract overspending

---

SaaS vendors often aim to expand their footprint within your organization. What starts as a single application quickly grows into a broader platform offering—often complex, poorly understood, and reliant on costly consulting services. Sales teams push bundled deals under the guise of "better pricing," but the reality is that companies end up with 30% more entitlements than they need. These extra tools frequently go unused, inflating costs without delivering value.

Enterprise or Cloud Platform Agreements are a major source of overspending. These broad contracts are frequently misunderstood by customers, who rely on the vendor’s sales reps for guidance. Often tied to complex platforms that require detailed deployment planning and additional consulting, these agreements are sold before a clear use case or implementation path is defined. Years later, companies realize they’ve been paying for capabilities they never used and had no realistic plan to deploy.

SaaS vendors often upsell premium support or enhancement packages—sometimes adding up to 20% to the contract cost. Marketed as ways to improve product usage or accelerate support, these services are frequently underutilized due to lack of clarity around what’s actually included. Customers often find they receive no noticeable benefit, and when meaningful help is needed, it's still billed separately.