mit cloud procurement 1262012

8/3/2019 MIT Cloud Procurement 1262012

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IT PROCUREMENT AND VMO

IT Procurement and the

Cloud

1/26 MIT:PMG Group


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Date: January 26, 2012

Topic: IT Procurement and the CloudFacilitator: Brad Veech

Cloud Computing

SaaS Software as a ServicePaaS Platform as a ServiceIaaS Infrastructure as a ServiceBPaaS Business Process as a Service

The SaaS contracting model is immature and is still not standardized,with many risk elements that concern IT procurement professionals.

Gartner Dec, 2011


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INTRODUCTIONSINTRODUCTIONS


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Cloud computing is the delivery ofcomputing as a service rather than a product,

whereby shared resources, software, and information are provided to computers andother devices as a metered service over a network (typically the Internet).

Software as a service (SaaS, typically pronounced [ss]), sometimes referred to as"on-demand software," is a software delivery model in which software and itsassociated data are hosted centrally (typically in the (Internet) cloud) and are typicallyaccessed by users using a thin client, normally using a web browserover the Internet


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Microsoft, 2008


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WHO IS NEGOTIATING THE DEALS?

Many SaaSproviderssell direct to thebusiness, ratherthan through ITorganizations,

where there islimitedunderstanding, ifany, of the realrisks of theseagreements.


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PERPETUAL VS. CLOUD/SAAS

(PERMANENT VS. RENTED)

Cloud solutions often look like they have lower initial and switching costs

What is included in the cost? Length of contract, and termination clause.

URL links to on-line terms as a part of contract? Do not agree to product names, use functionality instead.

anything with the same or substantially the same functionality Price locks!!! Many Cloud/SaaS solutions try to alow for them to have

virtually unlimited exposure to price lifts year over year. Try not to captime frame, just make it a generic 2% max increase, etc

Where is your breakeven? I am finding 3.8yrs.


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RISKS.

Significant cost escalation over time?

Data loss, most only are keeping for 12 months?

Uptime?

Changeable, online contracts? Maturity of the supplier?

Multi tenant or single tenant model?

Version changes? All (One to Many) or silod?

Many SaaS providers use sub-contracted infrastructure, like Amazon,etc; They are responsible for them, not you!


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ASKS

Get a free pilot for the solution

Have a bake-off between solutions

Termination that gets your data back, without costing you more $$

Renewal cap CPI or X%, but do not have for a fixed year term Be sure to add all Employees, contractor, consultants, agents, etc

Reduced annual cost if volume of use goes down

SLAs that fit your specific need

Data Security/Data Privacy clause


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OTHER SOURCES OF INFORMATION

Gartner Toolkit Dec 2011

Forester -

ICN Demystifying the cloud

http://www.dobetterdeals.com/seminardetails/cloud.html


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Refer the most people

Upcoming Dates:

January 27th - MIT:ENG IT Managers (IT Manager including some other levels ofManagement)

February 3rd - MIT:ENG IT Director/VP (Directors and Vice Presidents)

February 10th - MIT:ENG CIO (Highest Level of IT leadership)

February 17th - MIT:ENG OMG (Leadership professionals in transition and l

leaders that are hiring)

February 21st - MIT:ENG PMO (Project Management, Portfolio Management andBusiness Analysis)

February 23rd - MIT:ENG PMG (IT Procurement Professionals)

All Group Event 2/24/12 Medica Noon 2PM

Developing an Enterprise Mobility StrategyNathan Clevenger - Chief Software Architect at ITRMobility, and author of "iPad in the Enterprise


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Topics for Future Meetings

Thank you to Medica for providing the facilities for the meeting today.

mit cloud procurement 1262012

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