What are benchmarks?
Market benchmarks are pricing reference points for technology vendors — the minimum, average, and maximum pricing that real organisations pay for a given product. OTIS maintains benchmark data for 85+ vendors, updated regularly from market sources.
How benchmarks appear in findings
When OTIS detects that your pricing for a vendor is above the market average, it surfaces a price anomaly finding. The finding shows your current price, the market average, and the estimated annual saving from negotiating to market rate.
Benchmark confidence levels
Each benchmark has a confidence rating based on the number of data points and their recency. High confidence means many recent data points with good coverage. Low confidence means limited data — treat low-confidence benchmarks as directional rather than definitive.
What benchmarks cover
Benchmarks are available for per-seat SaaS pricing, cloud infrastructure unit costs, telecom contract rates, and hardware support pricing. Not all vendors have benchmark data — OTIS flags this transparently when a vendor is not benchmarked rather than estimating.
Using benchmarks in negotiations
When preparing for a vendor renewal, use the benchmark data from the relevant finding as your reference point. The finding includes recommended negotiation language: the market range you have identified, a realistic target price, and a suggested approach to the conversation.
Benchmark data currency
Benchmarks are refreshed regularly. Software pricing changes frequently — benchmarks older than 12 months may not reflect current market conditions. OTIS shows the data date for each benchmark so you can assess its recency.
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