Why Early Renewal Makes Sense for Mid-Market Customers in 2025
Every year, organizations delay their ServiceNow renewal conversations until the last possible moment. Budgets are tight, projects are in flight, and internal priorities shift. But in 2025, early renewal isn’t just a convenience—it has become a strategic advantage, especially for mid-market customers who need predictable spend, stable pricing, and access to the right capabilities before annual price increases take effect.
At SHAW Data Security, we are seeing more customers save significant cost and accelerate their roadmap simply by renewing early and adding the products they will need anyway. In many cases, the financial and operational benefits are immediate.
The Growing Cost Pressure on Mid-Market IT Teams
Mid-market organizations face a unique challenge. They have the same compliance, security, and operational expectations as large enterprises, but with fewer resources. ServiceNow is often a critical platform, yet budgets must stretch across security, cloud, automation, and operations.
Delayed renewals often lead to rushed decisions, unnecessary cost increases, and missed opportunities to bundle products or align with incentive programs. Early renewal removes the pressure and unlocks more favorable terms.
Avoiding the Standard Annual Increase
ServiceNow’s standard annual uplift—typically around 10 percent—applies automatically at renewal unless customers engage early and add net-new product value. By renewing ahead of schedule, customers lock in their current price, avoid the uplift, and gain time to plan strategically.
In many cases, the savings from avoiding the annual increase exceed the cost of adding the new module.
It is one of the clearest ROI opportunities available to mid-market customers.
Bundling Products With Better Economics
Many organizations plan to expand into new modules—IRM, ITAM, TPRM, ITOM Visibility, CSM, or Impact Guided—but may not know the optimal time to purchase. Early renewals allow ServiceNow AEs and partners like SHAW to package new SKUs at significantly better pricing because the transaction increases total contract value.
When customers buy new modules at renewal time, they often pay more. When they buy them before renewal, they often pay less. This timing difference can save thousands.
Securing Platform Stability for Q1 Projects
Most mid-market organizations execute major ServiceNow projects early in the calendar year. Early renewal aligns the contract with the delivery calendar, ensuring licenses are active, correct, and ready before kickoff.
This avoids project delays, operational risks, and unexpected budget conversations. Early renewal keeps the roadmap moving.
Leveraging Impact Guided and Success Entitlements
ServiceNow’s new Impact Guided Success programs offer coaching, accelerators, and best-practice assets. These are particularly valuable for mid-market teams that may not have full-time architects or platform owners.
Early renewal makes these benefits available sooner, improving adoption and lowering time-to-value.
Mid-market customers gain capabilities that traditionally required larger teams.
Taking Advantage of AE Incentives and Partner Alignment
Sales cycles always improve when customers and AEs work together before the renewal deadline. When customers renew early, AEs gain more flexibility around pricing, packaging, and success planning. This leads to a more strategic, proactive partnership instead of last-minute negotiations.
Partners like SHAW can also align implementation sequencing, budget planning, and resource availability long before delivery starts. Early renewal maximizes negotiating leverage.
Preparing for 2025’s Market Reality
Pricing across software vendors—not just ServiceNow—is increasing due to higher cybersecurity requirements, AI adoption, and cloud inflation. Organizations that wait until late in the year may face market-wide price adjustments.
Early renewal locks pricing in before these changes impact budgets. This is especially critical for customers planning multi-year transformations.
How SHAW Data Security Helps Customers Make the Right Renewal Decisions
SHAW works with ServiceNow AEs to build a financially optimized renewal strategy tailored to each customer. We help organizations identify the modules that will deliver real value, avoid unnecessary spend, and time purchases to maximize savings. We show customers how early renewal can fund future projects, retire legacy systems, and accelerate operational maturity. Our goal: strengthen your roadmap while protecting your budget.
Early renewal has become one of the smartest financial moves a mid-market customer can make in 2025. It avoids cost increases, enables better pricing for new products, supports roadmap execution, unlocks Impact Guided benefits, and gives organizations greater negotiating power. With the right plan, early renewal becomes more than a financial strategy—it becomes a growth strategy.











