IACCM Contract Management Forum

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World Commerce & Contracting
2019-05-20 14:02:06

as-a-Service contracts

Hi I shared our recent research on A Guide to Fair Contracts for 'As a Service' at our Shanghai member meeting today. Have others read it - see www.iaccm.com/services/research/ - and does it match your experience of 'negotiating' these type of contracts? Are they fair or unduly weighted in the service provider's favour?
 •  Fire and Emergency NZ  •   2019-05-23 09:03:49
Hi Bruce - your post and the efforts of Tim, Paula, Christine and Andrew deserve more than zero responses, so here goes.

I do like how the paper encourages us to take a different mindset to the usual "here are our standard contract terms". It's also great that it helps us think about what are the crucial measures / outcomes that we need to think about - like uptime and the remedies. It's great to have some of these issues and risks highlighted so we can include better milestones and measures of success.

As a practitioner, and I've said it before in the forum, I do worry that there's some real thinking missing when I see some of these about whole of like costs involved with data transfer at the end of the contract. There's a lot of great programs that say they can repurpose and reformat the data, but I've found that there's still a lot of cost associated with that, and in the original approach to market, I've seen few demonstrate any real cost in their procurement plans. We can't expect the IACCM team to do it all though !
 •  Devant Limited  •   2019-05-29 15:40:11
Hi, I've recently been negotiating on the Supplier side and have found that customer's want to pay a low price, benefit from the flexibility of SaaS pricing but then want to negotiate hard on every single detail! A particular challenge has been the demand from Customers to put every new release / update (however small) through extensive UAT. This clearly challenges the agile & flexible nature of SaaS and the one-to-all model. A number of SaaS suppliers are also relatively new and growing businesses - my experience is that many large corporates want to take advantage of this.

Thanks for preparing this paper as it articulates the challenges and benefits of 'as-a-service' well.
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