Negotiation Techniques and 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). 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.

Identify Authors’ Point of View (Advertising Piece, Academic Piece, Product Review Etc.)

The author’s point of view in the first article emphasizes the on-demand-based sourcing cloud computing models that have become a core competency for the companies. With the benefit of faster implementation and computational qualities, the cloud services like SaaS have topped the list of other services in the market due to their state-of-the-art technology, which is highly conducive to today’s companies’ requirements. For staying competitive within the market and industry, the author believes in staying flexible and updated with the changing preferences so that predictability and transparency do not become challenging. Moreover, there certainly are risks to outweigh these benefits that involve security and dependence on the process. Still, companies increasingly rely on SaaS for its characteristics, specifications, and economic gains related to cloud computing for cost analysis and negotiations.

The point of view of the second author is relatable to the first article since profits and revenues are comprehensively the topics of interest in the articles. Although the other two types of cloud computing have also been debated in detail along with SaaS, SaaS turns out to be the best response provider in terms of the process for the service givers. The author presents his idea that demand is independent of the optimal number of reserved instances inferred from Stackelberg equilibrium. This model originated to identify the best cloud cost analysis and the sustainability for the firm’s profits by keeping in mind factors like market-based pricing, price skimming, penetration pricing, and optimum solutions.

Bias of Authors

In the first article, the obvious bias is the dependability of the data based on the year 2009. It could be considered outdated, and the results computed from the survey could be weighted. There has been a huge difference from that time the internet was introduced till the time we observe in the current business world. The processes have become complex, and globalization has posed new challenges to the firms for which the author’s interpretations might be considered biased.