Software giants may use eco projects as a cover for price rises TechRadar Skip to main content TechRadar is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Here's why you can trust us. Software giants may use eco projects as a cover for price rises By Craig Hale published 1 September 2022 SaaS vendors could be blaming their eco-credentials for your price hikes (Image credit: Number1411 / Shutterstock) Audio player loading… If you're using dedicated collaboration software or productivity software for your business, chances are you'll be paying a third-party to supply it. A new Gartner analysis suggests that significant price increases could be on the way, citing eco projects as a key contributor. Over the next 36 months, software as a service (SaaS) vendors are said to be planning a significant increase in their prices, by as much as 20%. The Gartner document, titled "3 Reasons Why SaaS Vendors Are Raising Prices and What You Can Do About It" suggests sustainability regulations could be introduced worldwide, meaning that many vendors will need to tweak the way they work to remain compliant. Software prices rising energy prices With a global focus on energy usage in a time where unit costs are higher than ever, companies are likely to become more reliant on reducing their carbon footprint, by using green data centres for example. While this could receive part of the blame for increased prices, green data centres are specifically designed to use less energy. Because they are more efficient, running costs should be lower (after a potential capital outlay, which may be reflected in any software price hikes). The solution? Gartner recommends chatting with your supplier to investigate its eco-credentials and to rule out greenwashing. It says that around two in five companies' statements about sustainability were "exaggerated, false, or deceptive", which could give you grounds to question the company's pricing. Software prices rising labor costsRead more> Check out the best free office software > How IT leaders can optimize cloud and SaaS spending > SaaS platforms are facing more phishing attacks than ever The past two years have been especially challenging, and a further turbulent period caused by Russia's invasion of Ukraine has added further stress on global supply chains. The same source suggests that the invasion has reduced the worldwide tech talent pool by as much as 5%. The solution? Gartner suggests looking into the company's workforce, and better still, its use of automation. Check whether it's committed to maximising efficiency, which could help reduce its labor costs. Software prices rising inflation The third reason in the study places an emphasis on inflation, which is soaring globally. Unfortunately, there's very little for bargaining here. That said, check the percentage of increase somewhat matches the percentage of inflation, or that it's not drastically disproportionate. If you're committed to your current SaaS vendor, consider locking in for a longer time by renewing your contract early, rather than waiting for an auto-renewal price.This is the best project management software around Via The Register (opens in new tab) Craig Hale With several years' experience freelancing in tech and automotive circles, Craig's specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the electrification of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value! See more Software news Are you a pro? Subscribe to our newsletter Sign up to theTechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Thank you for signing up to TechRadar. You will receive a verification email shortly. There was a problem. Please refresh the page and try again. MOST POPULARMOST SHARED1You may not have to sell a body part to afford the Nvidia RTX 4090 after all2My days as a helpful meat shield are over, thanks to the Killer Klown horror game3I tried the weirdest-looking Bluetooth speaker in the world, and I utterly adore it4It looks like Fallout's spiritual successor is getting a PS5 remaster5One of the world's most popular programming languages is coming to Linux1We finally know what 'Wi-Fi' stands for - and it's not what you think2Best laptops for designers and coders 3The iPhone 14 Pro is made of the wrong stuff; the Pixel 7 proves that to me4Miofive 4K Dash Cam review5Logitech's latest webcam and headset want to relieve your work day frustrations Technology Magazines (opens in new tab)● (opens in new tab)The best tech tutorials and in-depth reviewsFrom$12.99 (opens in new tab)View (opens in new tab)