Stepping up to the ‘As-A-Service’ economy – Challenging the status quo

SteppingUp

16 Sep Stepping up to the ‘As-A-Service’ economy – Challenging the status quo

The As-A-Service economy is all about the customer – and this is turning the tables in terms of risk allocation.

The impact of cloud is leading to the development of entirely new commercial models – which, in turn, requires a fresh approach to contracting.  Vendors and corporations are still getting their heads around the enormity of these changes.  If we try and re-use the same old models, then we will get left behind. 

This calls for new approaches to contracting with:

  • commitments around ongoing competitiveness (based on agreed price points) – so that As-A-Service solutions evolve and stay competitive right up until the last day of the contract term;
  • commitments around achieving the corporation’s required business outcomes (as they change and evolve over the term);
  • consumption-based pricing;
  • new kinds of performance metrics – ensuring that the vendor is joined at the hip, in terms of achieving the corporation’s required business outcomes; and
  • new ways of working together – new governance models and new approaches to transition. 

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This article was published in the September 2015 edition of ACLA Journal.