Technology purchases now shape how almost every business operates. Laptops and servers, accounting and ERP systems, CRM platforms, cybersecurity tools and cloud services all carry long-term consequences for productivity, cost and risk. Yet technology is often bought reactively: a renewal falls due, a vendor offers a discount, or a department adopts a tool without involving anyone else.
A structured procurement approach helps businesses buy what they need, at a sustainable cost, from suppliers they can rely on.
Start with the business requirement
Every technology purchase should begin with a problem to solve or an opportunity to capture, not a product name.
Document:
- The business need – for example, faster month-end close, better visibility of sales pipeline, or secure remote access.
- Users and volumes – who will use the solution, how many, and where.
- Functional requirements – what the solution must do, separated into "essential" and "desirable".
- Non-functional requirements – security, availability, performance, data location, language support (including Arabic where relevant) and accessibility.
- Integration needs – which existing systems the new solution must connect to.
- Regulatory drivers – obligations that the technology must support.
The UAE's national e-invoicing programme is a timely example of a regulatory driver. Businesses with revenue of AED 50 million or more are required to appoint an Accredited Service Provider by 30 October 2026, with implementation from 1 January 2027, and other businesses follow later phases. Any accounting or ERP decision made today should consider e-invoicing readiness.
Consider total cost of ownership
The purchase price is rarely the largest cost. A realistic view of total cost of ownership includes:
- Licences or subscriptions, and how they scale with users or usage.
- Implementation, configuration, data migration and integration.
- Training and change management.
- Hardware, hosting or cloud consumption.
- Support, maintenance and upgrades.
- Internal staff time.
- Exit costs, including data extraction and transition to another provider.
Compare options over a realistic lifetime – typically three to five years – rather than on first-year cost alone.
Run a fair and structured selection
For significant purchases, a structured process protects the business and produces better outcomes.
- Market scan – identify credible options, including established vendors and authorised resellers or integrators.
- Request for information or proposal – share your requirements and ask vendors to respond in a consistent format.
- Weighted evaluation – score proposals against agreed criteria such as functionality, security, cost, vendor stability and support quality.
- Demonstrations using your scenarios – ask vendors to show how their solution handles your real processes, not a generic script.
- Reference checks – speak to existing customers with similar needs.
- Proof of concept or pilot – for higher-risk purchases, test with a limited group before full commitment.
Involve IT, finance, the business owners of the process and, where relevant, legal and compliance from the outset.
Assess vendor and supply chain risk
When you buy technology, you also inherit some of your supplier's risks. The US National Institute of Standards and Technology (NIST) addresses this in its guidance on cybersecurity supply chain risk management (C-SCRM), which is aimed in part at acquirers of products, software and services, and in 2026 NIST finalised a quick-start guide to due diligence assessment of suppliers. While written for a US audience, the principles are widely applicable.
Practical questions to ask vendors include:
- How do you secure your own development and operations?
- Which independent security certifications or audit reports can you provide?
- Where will our data be stored and processed, and by whom?
- Which subcontractors or sub-processors are involved?
- How quickly will you notify us of a security incident?
- How are vulnerabilities identified and patched, and for how long will the product be supported?
For hardware, buy through authorised channels, confirm warranty coverage in the UAE and be cautious about prices that appear too good to be true, which may indicate grey-market or counterfeit equipment.
Address data protection and cloud requirements
Many technology purchases involve personal data or business-critical information.
- The UAE's federal Personal Data Protection Law (Federal Decree-Law No. 45 of 2021) governs the processing of personal data of individuals in the UAE, while certain financial free zones, such as DIFC and ADGM, have their own regimes.
- The UAE Cyber Security Council's National Cloud Security Policy sets out expectations for cloud governance, contractual agreements, data security and lifecycle management, and resilience. Its applicability varies by type of organisation, but its principles provide a useful checklist for any business adopting cloud services.
Sector regulators may impose additional requirements, particularly in financial services, healthcare and government-related work. Confirm what applies to your organisation before selecting a provider.
Negotiate the contract carefully
Technology contracts are often presented on standard terms, but key points are usually negotiable for meaningful commitments. Pay attention to:
- Service levels – availability, response and resolution times, and remedies if they are missed.
- Data ownership and return – your right to retrieve your data in a usable format at any time and on exit.
- Security and confidentiality obligations, including incident notification.
- Price protection – limits on renewal increases and clarity on what triggers additional charges.
- Term, renewal and termination – avoid long automatic renewals without notice.
- Liability and indemnities appropriate to the risk.
For material contracts, legal review by qualified counsel is advisable.
Plan implementation and adoption
A well-chosen system can still fail if it is poorly implemented. Treat significant technology purchases as projects, with a sponsor, a plan, testing, training and a clear go-live and support approach. Measure adoption and benefits after launch, and review whether the solution continues to meet requirements at each renewal.
A procurement checklist
- Is the business requirement documented, with essential and desirable features?
- Have total costs been estimated over the expected lifetime?
- Were options evaluated against consistent, weighted criteria?
- Has vendor security and supply chain risk been assessed?
- Are data protection and any cloud or sector requirements addressed?
- Do contract terms cover service levels, data return, security and exit?
- Is there an implementation and adoption plan?
Discuss your technology needs with SOMAK
SOMAK Global Solutions supports businesses with computer systems and software trading, computer programming services and technology advisory, helping clients define requirements, compare options and coordinate implementation. If you are planning a technology purchase or review, we would be pleased to discuss your requirements.
This article is general information and does not constitute legal or regulatory advice.
