Top 4 mistakes to avoid when purchasing SaaS apps

Poor software purchasing decisions can be costly, causing loss of productivity and failure to meet key business objectives. Here’s how to steer clear of the most common blunders companies make when choosing SaaS applications.

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There are thousands of software-as-a-service (SaaS) apps on the market, all competing to be number one in a particular category. Consequently, organizations often have a difficult time selecting the right SaaS apps for their specific needs — and they make mistakes that can cost them time and money.

Here are the top four missteps companies make when buying SaaS apps, and how to circumvent them:

1. Not considering the 'why'

One of the first things an organization should do is ask why it's considering a particular SaaS app, said Steve Cabello, managing director at consulting firm Protiviti.

"My first two questions for clients are: 'Why are you doing this?' and 'What are the strategic drivers?' It's important to know that, because then the way you approach the evaluation might be different," he said. "Sometimes it might be cost savings, and sometimes it might be to gain operational efficiencies."

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