Negotiation Techniques And Cost Analysis&nbspEssay

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COST ANALYSIS

Cost Analysis and Negotiation Techniques

Comparison of Two Articles Related To Software for Cost Analysis and Negotiations

For making important business decisions, both small and large companies have to make cost analyses to maximize profits. High returns of investment and useful utilization of available resources are only possible if a thorough cost analysis is accompanied by negotiation skills to reduce risks. This paper aims at making a comparison between two articles that include software used for the same purpose. The two articles selected for comparison are based on software as a Service (SaaS) used for cost analysis and negotiation techniques by a plethora of companies in modern times.

Comparison of Goals and Objectives

In the first article, the author Benlian (2009) discusses the factors that lead to the adoption of SaaS for cost analysis and demand sourcing software. The assessment of the factors took place by creating four hypotheses with their foundations in the transaction cost theory (TCT). A survey was then conducted in 154 firms within Europe to test the hypothesis and the theoretical model. It was revealed that the size of the enterprise, small or large, highly influenced the application of SaaS in which uncertainty played a significant part. Also, SaaS application is another factor that drives the decision for its utilization within SMBs and other kinds of enterprises.

In the second article, the author Lee (2021) elaborates on the widespread use of SaaS along with other cloud computing applications such as PaaS (Platform as a Service) and IaaS (Infrastructure as a Service)….

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Previous studies have been highlighted in this paper to present the literature on the same topic. Value-based pro9cing has been discussed with the relevance of cloud services that help in cost minimization and calculating profit margins.

Purpose of the Articles

The purpose of both articles is evident from their goals and objectives as cost reductions and profit maximization is the major targets of small and businesses today. When the internet is connected to almost every hardware and software management in the companies, cloud computing has become convenient and inevitable. It has been indispensable for companies to make decisions without effectively making costs calculation. Negotiations with service providers and giving value along with the best-offered prices to the customers becomes the optimal solution for the enterprises. Hence, the purpose of the articles is to give profitability to both the companies and the consumers

Recently, it has been explored that social welfare has not been taken into account when making cost analyses through cloud computing services like SaaS. The three most commonly used pricing schemes naming subscription pricing, pay-per-use, and two-part tariff pricing, have been under discussion among which, pay-per-use has resulted in the most effective one (Chun, 2019). The purpose of the selected articles is similar in the sense that social welfare should be provided to the service providers and the consumers so that pricing regulation could be such that supply, demand, and profits could be the best fit for both.

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