Public Cloud in the IT Space - Cost of a Contract
Cloud has significant impact on the cost of Contract Creation and Negotiation. Data Processing and Security terms can be particularly difficult to negotiate, especially in the Public Sector Space. Pricing - especially where a good portion of Cloud is priced in a use-it-or-lose-it-model - can present a lot of customer concerns. Customizing the scope of the Contract to meet customer needs can prove beneficial, but given the lack of awareness, understanding, and knowledge of Cloud, it's not without a cost. Many customers still don't understand Cloud - this requires additional time explaining the ins-and-outs for customers in order to get them to buy Contracts where Cloud Service offerings and/or Cloud Professional Services are in scope. I will be interested to see how this changes years down the road. Perhaps it won't be so difficult to negotiate and create Contracts with Cloud. Hopefully more and more customers understand what they are buying and are familiar with the concept of Data Processing and Security as it relates to Cloud.