Renewal season: how to prepare your Software contracts for 2027
The fourth quarter is budgeting time. Those who map their renewals for 2027 now negotiate from a position of clarity rather than under time pressure.
- 29 September 2026
- 5 min
Budgets for the coming year are set in the fourth quarter. At the same time, many Software contracts expire or automatically renew as of 1 January. Those who do not review now often pay more than necessary in 2027.
Why the fourth quarter matters
Software vendors like to close their fiscal year or quarter with as many renewals as possible. This gives you leverage, but only if you’re at the table in time. Those who discover a contract renews only in December have no alternatives and thus no negotiating power.
Five steps for good preparation
1. Make a list of all renewals in the next twelve months. Note for each contract the end date, cancellation period, and internal owner. This overview is often missing, especially with smaller Software vendors.
2. Compare licences with actual usage. Licences for employees who have left or for barely used tools are the quickest savings.
3. Map out price increases. Many contracts contain annual indexation. In addition, large Software vendors raise their list prices; Microsoft did so on 1 July 2026 for Microsoft 365, for example.
4. Determine the strategy per contract. Renew on better terms, downscale, consolidate, or switch. Start with the contracts of greatest value or risk.
5. Begin three to six months before the end date. This gives you time to price alternatives and to get the Software vendor to make concessions.
Common mistakes
Only looking at big contracts, while surprises lurk in the long tail.
Missing the cancellation period, causing a contract to silently roll over for another year.
Signing a renewal without knowing what comparable organisations pay.
How SoftVaro helps
SoftVaro maps your renewals for the coming year and benchmarks them against data from similar Enterprise deals. Start with one contract: submit your next renewal or quote to us and within 24 hours you’ll know if there is room for negotiation on price and terms.
Frequently Asked Questions
The most commonly asked questions on this topic.
When should I start preparing for a renewal?
Ideally three to six months before the end date. Then you have enough time to analyse usage, price alternatives, and negotiate.
What if the cancellation period has already passed?
Even then, there is often room for manoeuvre, for example on number of licences, contract duration, or terms for the next year. Have the contract reviewed before you pay the invoice.
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