By: ProcurementIQ Analyst, Mark Seraydarian
The upcoming year will present opportunities and challenges for procurement departments as market prices fluctuate and regulations take effect across sectors. In some markets, including the online file storage services market, prices are set to decrease precipitously due to intensifying price-based competition. Other markets, like the solar panel installation and drones markets, will undergo heavy regulatory change in 2018, something buyers should prepare to leverage to their advantage. Prices in the biodiesel market will rebound, so buyers should be sure to take advantage of current prices before they begin to rise. Finally, as net neutrality legislation is rolled back, buyers of web hosting services may benefit as smaller players begin to capture larger shares of the market. Procurement departments should prepare for coming changes by learning which market factors they can leverage to gain discounts and lock in lower prices.
- Online File Storage Services
Amazon, Dropbox and Google are top suppliers in the online file storage services market. These services, which continue to grow in popularity, allow users to securely store and access important files online, reducing the need for physical hard drives. While Dropbox was considered an innovative tool in 2007, the year it was founded, online file storage services have since evolved. These services have become more prolific and are much easier for buyers to procure. With more suppliers in the market, the price of these services fell at an estimated annualized rate of 8.2% during the three years to 2017. In 2018, ProcurementIQ expects prices to fall further, dropping at an annualized rate of 6.2%.
A sharply decreasing price trend bodes well for buyers, allowing them to use changing prices to their advantage during negotiations with suppliers. With prices declining, procurement departments need not rush into contracts. If buyers are set on making a purchase now, they can use the favorable market conditions to score discounts on related solutions, such as document creation services and communication applications.