5 Things Every Agency Should Know About Procuring Cloud Services
January 29, 2015
Grazed from Business2Community. Author: Caron Beesley.
If your agency is making the move to cloud services, it can expect cost-savings, improved service delivery, and all the great things that the cloud brings. But for procurement and purchasing officials whose practices and contracting vehicles were designed to help managers provision hardware and software, not on-demand services like the cloud, it can all cause a bit of a frenzy.
But cloud procurement isn’t as problematic as it might first appear. Here are a few quick tips and insights that can help guide you through the solicitation, award and termination phases:…
- Don’t Be Tempted to Make an FFP Award
We all want to prevent cost over-runs and firm-fixed price (FFP) contracts are a great way to do this – just not when procuring cloud services. Why?
Because cloud services are provided on a consumption-based model (meaning you pay only for what you use), the costs are actually under the control of the end user and are not subject to the same over-runs as traditional IT software service offerings…