Lori Schafer in Forbes Technology Council: Hidden Risks Of Buying Software Through Cloud Marketplaces

Read the article in Forbes Technology Council here.

Cloud marketplaces have made it easier than ever for organizations to discover, purchase and deploy software with just a few clicks. But convenience can sometimes mask hidden risks, from unclear pricing structures and auto-renewal terms to integration challenges and security gaps.

Without a clear evaluation strategy, companies can run into unexpected costs, compliance gaps or integration headaches, and they may find themselves locked into tools that don’t align with their long-term goals. Below, members of Forbes Technology Council share common pitfalls of buying software through a cloud marketplace and how leaders can avoid these costly missteps.

Confusing Procurement Speed With Operational Readiness

One pitfall that’s often overlooked is mistaking ease of procurement for operational readiness. Marketplaces are great at simplifying contracts and speeding up access, but they don’t solve the integration, lifecycle management and governance challenges that come afterward. To avoid this trap, tech leaders should treat marketplace products with the same rigor as any enterprise platform. - Gaurav Rastogi, Hertz Corporation

Buying ‘Vanilla’ Software Before Defining Requirements

The biggest pitfall is not understanding your own needs and requirements. Commercial off-the-shelf software is made for a “vanilla,” non-custom username. If you have specific requirements, it may not always work for you. Step one is to determine what those outliers are. - Abhijit Verekar, Avèro Advisors

Failing To Align Licensing With Usage Patterns

The most common oversight is misalignment between marketplace licensing and real usage patterns. Marketplace offerings often bundle licenses, with tiers that don’t map cleanly to how teams actually consume the product. As adoption grows organically across regions, environments or business units, costs can balloon quickly, sometimes without clear visibility into which teams are driving the spend. - Nishanth Prakash, Oracle

Assuming Marketplace Apps Meet Security And Compliance Standards

One overlooked pitfall is assuming cloud marketplace purchases align with internal security and compliance standards. Tech leaders should involve security and procurement teams early to vet configurations, access controls and licensing terms. This ensures faster deployment without risking misalignment or costly rework post-purchase. - Govinda Rao Banothu, Cognizant Technology Solutions

Treating Marketplace Purchases As ‘Just Procurement’

A common pitfall is treating marketplace purchases as “just procurement.” Hidden risks show up later, such as identity and security gaps, duplicate tools, and surprise renewal terms. Tech leaders can avoid this by enforcing lightweight architecture and governance reviews, integrating with core platforms, and tracking usage-to-value. - Lori Schafer, Digital Wave Technology

Underestimating The Total Cost

A common pitfall is underestimating the true cost. Marketplace purchases can obscure auto renewals, usage spikes and long-term commitments. Tech leaders should treat these buys like any enterprise deal by forecasting spend, validating adoption and aligning cost to actual usage. - Judit Sharon, OnPage Corporation

Allowing Tool And License Sprawl

A common pitfall of cloud marketplaces is mistaking convenience for governance because procurement is fast. Easy purchasing can lead to tool and license sprawl, skipped security reviews, and cost creep. Tech leaders can avoid this by adding light guardrails, ownership tags, spending limits and regular marketplace reviews so the ease of buying does not turn into long-term risk or complexity. - Dr. Vivian Lyon, Plaza Dynamics

Underestimating Exit Terms And Vendor Lock-In

One common pitfall is underestimating lock-in. I have seen teams buy fast through a cloud marketplace without fully understanding contract terms, exit costs or usage creep. Leaders can avoid this by treating marketplace buys like any other enterprise purchase: Establish clear ownership, cost controls and an exit plan before clicking “buy.” - Ganesh Ariyur, Gainwell Technologies

Skipping Architectural Scrutiny

The major problem with cloud marketplaces is that they offer speed without scrutiny. Purchases are made with no friction, but lock-in, price hikes and integration debt are like a hidden trap. Technology leaders need to view marketplace purchases as if they were architectural choices. Define exit routes and ownership up front; otherwise, what is very easy now turns into a constraint later on. - Khurram Javed Mir, Kualitatem Inc.

Assuming Plug-And-Play Compatibility

One major pitfall is treating marketplace software as plug-and-play, when it actually depends on specific libraries, configurations and prerequisites. Avoid this mistake by demanding a dependency list and running a quick proof of compatibility on your stack. Appoint a single accountable owner to oversee implementation end-to-end. - Shashank Chaurasia, MooresLabAI

Failing To Assign Ownership And Define Success

One common pitfall is treating cloud marketplace software as “done” once purchased. Marketplaces make buying easy, but they don’t define ownership, success metrics or review timelines. Without clarity, software becomes an ongoing cost with unclear value. Tech leaders can avoid this by assigning an owner, defining success up front, and setting regular reviews so convenience drives outcomes, not inertia. - Arun Goyal, Octal IT Solution LLP

Buying Point Solutions Without Integration Planning

A common pitfall is buying point solutions without validating how they integrate with existing data, security and ops workflows. Tech leaders should treat marketplace purchases like any enterprise software—architect for integration, visibility and long-term cost, not just speed of procurement. - Sven Oehme, DataDirect Networks

Overlooking Subscription Terms

One pitfall: Treating cloud marketplaces as a click-through solution with a one-time purchase agreement. Companies often don’t consider subscription fees or surprise renewals when signing up for cloud services, and compute resources for anything—storage or app development—require continuous service and payment. Leaders can avoid this by thoroughly researching cloud vendors to understand their policies. - Daniel Keller, InFlux Technologies Limited (FLUX)

Ignoring Portability, Renewals And Multiyear Costs

One-click buys hide restrictive renewals, data gravity and exit costs. Leaders should mandate portability reviews, exit paths and multiyear cost modeling up front—otherwise, speed today becomes strategic debt tomorrow. - Dr. Sanjay Kumar, City of New Orleans

Skipping Architecture, Security And FinOps Reviews

A common pitfall is treating marketplace apps as “preapproved,” so teams skip deep checks on data flows, identity and access management, and long-term costs. Leaders should apply the same architecture, security and FinOps reviews they use for core cloud services. Plus, demand a short pilot and clear exit clauses before any multiyear commitments, renewals or aggressive auto-scaling upgrades. - Anurag Jindal, Vertisystem (A MOURI Tech Company)

Overlooking Variable Fees

One common pitfall is focusing solely on the subscription price while overlooking the total cost of ownership, including data egress fees, API call charges and premium support costs. This can be avoided by conducting cost modelling that includes realistic usage projections across all pricing dimensions and by requesting detailed breakdowns from vendors about potential variable costs. - Kevin Cushnie, MC Systems

Letting ‘Commitment Creep’ Undermine Budget Discipline

The biggest pitfall is “commitment creep.” Companies often burn through private pricing agreements (EDPs) for high-margin marketplace software, unknowingly sacrificing long-term budgetary constraints for short-term convenience. To avoid this, tech leaders must audit the "net retention" of marketplace spending and ensure third-party licensing doesn’t cannibalize core infrastructure discounts. - Venkata Kondepati, Ascentt

Assuming Marketplace Terms Match Manufacturer Terms

A common misconception among many marketplaces is that the terms and conditions are the same as those given by the manufacturer directly. In many cases, the terms of both the marketplace and the software apply to the purchase. - Kevin Korte, Univention

Mistaking Convenience For Thorough Risk Review

One overlooked pitfall is mistaking convenience for confidence. Cloud marketplaces make buying software feel safe and instant, but they don’t remove responsibility. Tech leaders should slow the click—scrutinize permissions, data flows and contracts—so speed doesn’t quietly introduce long-term risk. - Anil Lokesh Gadi, Cognizant Technology Solutions US Corp.

Failing To Set Autoscaling Limits And Budget Guardrails

The trap is assuming cloud autoscaling will protect your budget. Without limits, it maxes out infrastructure to prevent downtime. Imagine eight servers turning into 80 overnight during peak load—then a morning bill of hundreds of thousands. A solution would be setting hard scaling limits, budget caps and prelaunch cost alerts. - Illia Smoliienko, Waites