“Your costs will go down, and your service level will go up”
The standardized commercial delivery model of cloud computing is fundamentally different from the traditional model for on-premises IT purchases. Successful cloud procurement strategies focus on application-level, performance-based requirements that prioritize workloads and outcomes, rather than dictating the underlying methods, infrastructure, or hardware used to achieve performance requirements.
Leasing isn’t new, and neither are subscription based services. The cloud, shortened product life-cycles, and risk reduction initiatives have popularized it, while new technologies and business process maturation have enabled organizations to view and bill internally based on consumption. Arête Solutions has significant experience structuring outcome based contracts for both leasing and purchasing that are FAR compliant, and that meet the goals of the organization.