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What Enterprise IT Buyers Are Worried About – A Mid-Year Perspective
At our recent Customer Advisory Board meeting, clients gave us a real-time pulse on the IT procurement challenges weighing heaviest right now. Procurement leaders are being pulled in multiple directions. They’re grappling with the complexities of software asset management, reworking contracts to mitigate generative AI risk, and responding to the ripple effects of global tariffs.
With these pressures mounting, large enterprises are adjusting their strategies with a proactive mindset. Here’s a look at the top challenges we discussed and how forward-thinking teams are responding.
Strengthening SAM: Common Challenges and Proven Practices
Implementing an effective Software Asset Management (SAM) program is often easier said than done. While the benefits are clear – cost savings, compliance, and visibility – many organizations face recurring challenges including:
- A lack of executive support, leading to limited resources and missed opportunities to manage IT spend more strategically.
- Poor license tracking with many companies relying heavily on SAM tools without maintaining accurate data. This results in over- or under-licensing and added risk.
- Organizational silos when SAM teams operate separately from IT, procurement, and finance.
- Treating SAM as a one-time initiative rather than an ongoing process also limits its long-term impact.
Organizations that succeed with SAM often start by securing leadership buy-in and setting clear, achievable goals. Many take a hybrid approach by combining internal expertise with managed services. Establishing defined roles and responsibilities, along with embedding SAM into procurement workflows, helps create structure and accountability. Ongoing tool assessments and process updates support long-term success.
Tool selection plays a critical role. Solutions like Flexera, ServiceNow SAM Pro, and XenSam are widely used, but the right choice depends on how well a tool integrates with existing systems and fits the organization’s needs. Ease of use, cost, and real adoption often matter more than feature-rich platforms that end up underutilized.
Contracting for Generative AI: What Procurement Needs to Consider
The rise of generative AI is creating new challenges for procurement and legal teams, particularly when it comes to managing risk in contracts. Unlike traditional software, GenAI tools generate content based on vast, often ambiguous datasets and highly variable user inputs. This makes outputs difficult to predict and raises important legal and compliance questions.
One major concern is intellectual property. Organizations may inadvertently use or reproduce copyrighted material through AI tools, while ownership of AI-generated content is often unclear. There are also growing risks related to regulatory compliance, including the potential for discriminatory, defamatory, or otherwise harmful content.
To mitigate these issues, contracts with vendors that supply GenAI-based solutions or features should emphasize control over both data and outputs. Procurement teams should ensure vendors do not use internal data to train models unless explicitly agreed upon. While warranties around AI-generated content may be limited, seeking indemnities for intellectual property infringement is still advisable.
It’s also important to align vendor agreements with internal AI usage policies, even if this leads to some negotiation friction. Including such terms can help organizations stay compliant with evolving regulations and maintain accountability.
As adoption accelerates, procurement has a key role to play in shaping how GenAI is sourced, deployed, and governed across the enterprise.
Navigating Tariffs and Supplier Pricing Tactics in IT Procurement
Ongoing tariff changes, both recent and anticipated, are adding new layers of complexity to IT procurement. These shifts are having a direct impact on supplier pricing strategies, prompting many vendors to adopt tactics that can place added pressure on buyers.
For example, some suppliers are pushing customers to make purchases quickly, citing potential cost increases tied to future tariffs. Others encourage hardware stockpiling, which can lead to inventory risks, or introduce long-term contracts with added surcharges or unclear line-item fees. In some cases, vendors may even point to tariffs as justification for price increases without providing supporting evidence.
To mitigate these challenges, procurement teams should adopt a structured, contractual approach. Legal reviews of supplier agreements can help identify and address tariff-related vulnerabilities. Key protections to seek include advance notification requirements for any tariff-driven price increases, clear pass-through provisions that define eligible costs, and negotiated caps on price adjustments.
If you’re interested in learning other contractual provisions that should be considered, be sure to check out Navigating the 2025 Tariff Storm – A Strategic Guide for IT Procurement.
Stay Ahead
As the IT procurement landscape grows more complex, staying proactive is essential. By understanding the trends shaping the space, including evolving software oversight, AI risk mitigation, and shifting global trade dynamics, organizations can make smarter and more strategic decisions.
