In addition, users offered these specific "vendor offenses" that exacerbate their disappointment with the licensing and pricing process.

Treating existing customers like second-class citizens. "Despite significant discounting for new customers, some vendors have adopted tactics of closing off negotiations for existing customers," Wang and Gaynor write. "In some cases these treatments are consistent across the board irrespective of client size and spending. Many small and midmarket enterprises cited little to no influence during negotiations and that off-the-shelf pricing appears to be the norm."

Hiding discount rationales. While a number of vendors now provide public price lists, the analysts found that many IT managers often were not supplied with a discount rationale if they were credited with one. "Several respondents echoed that in later negotiations, they are then unable to point to previous rationale to justify any future discounts," Wang and Gaynor write. According to one IT executive: "There was a discount based on the number (volume agreement bought), but they do not let you know what the discount is. They run numbers but don't really document the discount."

Favoring a one-size-fits-all approach. Vendors may prefer the internal ease of offering limited and standardized metrics and pricing. "However this one-size-fits-all approach often does not meet a customer's changing business needs and goals," the report states. "Meanwhile, others feel pressure from their apps providers to transition into licensing models that are more beneficial for the vendor's bottom line but not in line with the user's business goals."

Placing limitations on value to clients. According to the analysts' interviews, IT managers worry that over time they will slowly lose previously negotiated terms and benefits "the longer the relationship continues with their apps provider," Wang and Gaynor write. "They also fear vendor lock-in when it becomes too costly to change horses." One IT executive reported that his vendor "eliminated a lot of the value benefits over time. In the agreements we used to have things like unlimited support calling, but we can't do this anymore. Based on the number of licenses, we get X amount of credits to call with. This is a problem; we must pick and choose and use them only for emergencies now."

Resolving multiple licensing and pricing models post integration. Following vendor M&As, which seems to be happening a lot these days, vendors often leave newly acquired clients in the lurch with regard to reconciling future models and negotiations, the analysts found. And companies "whose previous structures will be honored still complain that direction for future support and enhancements is not always well communicated." Should renegotiation be necessary, Wang and Gaynor write, "they are left unsure about their options."