Pay for what you deploy: the end of shelfware
Enterprise software is often bought in bundles and used in parts. The rest becomes shelfware: paid for every year, used by nobody. Paying for what you deploy changes who carries that risk.
Shelfware is software you pay for and don’t use. It is common because of how enterprise software is usually sold: a large bundle, a multi-year term and a discount that makes buying more look cheaper than buying less.
How shelfware happens
- The bundle is bigger than the plan. Modules are bought for a second phase that never starts.
- Seats are bought for everyone. Usage settles at the people who needed it in the first place.
- The rollout stalls. Data issues, competing priorities or a departed sponsor leave the tool half deployed.
- Renewals are automatic. Nobody checks usage before the invoice arrives.
In each case, the buyer carries the risk that the software won't be used. The seller has already been paid.
Paying for what you deploy
Under CoSaaS, you pay for the parts of the solution that are live and working on your data. A new module is added when it is deployed, not when it is signed for. If something isn't delivering, it can be switched off.
| Bundle licence | Pay for what you deploy | |
|---|---|---|
| When you pay | Up front, for everything | As each part goes live |
| Who carries adoption risk | You | Shared |
| Cost of a stalled phase | Full licence | Nothing until it is live |
| Incentive for the vendor | Sell more | Deploy and keep it working |
Why it changes behaviour
When the vendor is paid for deployment, the vendor cares about deployment. Data problems get solved because they block revenue. Adoption matters because unused modules get switched off. The incentives of both sides point at the same thing: a working solution.
Questions to ask at your next renewal
- Which modules did we use in the last twelve months, and how much?
- What would we pay if we paid only for those?
- What has stopped us deploying the rest?
The answers usually make the case on their own. Read more about the model in What is CoSaaS? and on the CoSaaS page.