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