Why You Should Demand Transparency from Your Software Vendors

The global SaaS market is projected to reach $408.21 billion by the end of 2025, and forecasts estimate it will triple to over $1.25 trillion by 2034. While innovation and digital transformation are driving this growth, so is a worrying trend: opaque, confusing, and often inflated software contracts. Too many companies are paying for tools and features they don’t use, locked into rigid agreements, and stuck in a cycle of silent overspend. The root cause? A lack of transparency.

At Wyn, we work with procurement and IT leaders to make sure every penny spent on software is justified. Across hundreds of reviews, we’ve consistently seen how vendors profit from complexity. Here’s what you need to know.

The Hidden Costs of Opaque Software Deals

1. Bundled Modules & Licenses You Don’t Use

Enterprise software vendors like SAP, Oracle, Workday, and Atlassian are notorious for bundling in extra modules or user licenses as part of “volume deals.” The problem? Up to 30% of those licenses sit idle, yet you’re still footing the bill.

2. Usage-Based Pricing with No Predictability

Vendors are increasingly shifting to usage-based pricing models. While this allows for scalability, it makes budgeting a nightmare. Usage can spike unexpectedly during seasonal peaks, onboarding, or testing periods. Finance teams are pushing back, they want predictable cost models that don’t punish growth.

3. Annual CPI-Linked Increases

Even if you negotiated a decent starting rate, many SaaS vendors include CPI-based price escalators in the fine print. We’ve seen renewal prices jump as much as 8-20% annually, regardless of actual usage or value.

4. Lack of Visibility into Discount Models

Vendors operate with internal discounting rules and thresholds, which they rarely share with customers. This puts buyers at a significant disadvantage, especially when negotiating enterprise-wide agreements.

Transparency = Leverage

The only way to stop overspending is to understand what you’re paying for, and what others are paying for the same thing.

At Wyn, we don’t just benchmark pricing. We use vendor knowledge from our team to decode internal discount models, reveal margin structures, and guide negotiations. Our clients often secure six and seven figure savings, not because they were overpaying before, but because they finally had the data to negotiate effectively today.

What You Can Do Today

• Audit your software stack. Identify underutilised tools, unused seats, and bundled modules.

• Request itemised pricing. Push vendors to break out costs by feature, module, and user type.

• Start negotiations early. Give your team enough runway to explore competitive bids and gather insights.

• Ask for transparency. Insist on understanding how your pricing was calculated and what variables can impact future renewals.

Why It Matters More Than Ever

With the SaaS market growing at breakneck speed, software spend is becoming one of the fastest-growing expense categories for modern businesses. Many organisations are allocating 25% or more of their IT budget to SaaS tools.

If you’re not watching carefully, software spend will eat into your gross margins, reduce operational efficiency, and lock your business into inflexible systems. Demanding transparency is no longer a nice-to-have - it’s essential for protecting your bottom line.