Beeches Consulting has advised clients on many Cloud Managed Services contracts.
Some of these have been small contracts (around £100,000 per annum) with simple managed h/w and network requirements for UK SMEs and others ranging up to £multi-million framework contracts for global companies.
Beeches Consulting recently negotiated a Cloud based Managed Services contract for a £multi-billion global company that had doubled its size through acquisition. As with many such companies the acquisition brought with it significant benefits for consolidation of the merged organisation’s IT service delivery. A migration to Cloud based services was the answer bringing with it avoidance of capital investment, reduced operating costs and far greater flexibility and resilience in global service delivery. Beeches Consulting led the commercial negotiations on behalf of the client and drafted the contract with the service provider to ensure it would stand the test of time being a strategic contract for the client. The contract included hosting, technical support, voice and data networking, disaster recovery and video conferencing to name a few aspects of the contract.
Cloud Outsourcing contracts can be quite a difficult area for clients. Often standard terms are proposed for clients to use and suppliers are not used to having to negotiate contracts with a greater emphasis on resilience, security, and performance considerations when things go wrong. Often we find that supplier’s standard terms and conditions are somewhat dangerous for a client to sign up to as a vanilla package. In many cases the contractual terms, especially those covering availability, are seldom compared to business continuity requirements.
We also find that many of the potential claimed benefits and aspirations associated with Cloud are not realised or negated by poor scope of service definition, clients not taking up fundamental services available owing to fear of ‘letting go’ and poor contractual or commercial management in what is a very specialised area.
If you would like to take reference with any of our existing clients that have gone down this route with us, please give us a call and we can arrange it for you.