Cloud adoption isn't just about adopting a best-fit technical platform that can increase agility and efficiency while also reducing risk, but also involves careful consideration when it comes to contracts. Cloud has transformed the way we think about IT procurement and means that we need to think about new cost models that aren't as predictable on the balance sheet. Leading cloud and data centre Proact has developed this checklist to help you develop a flexible cloud contract, zooming in on important factors such as: - Cost - Terms and conditions - Cultural fit - Cloud maturity Stride forward to the cloud with the confidence that your platform will provide the flexibility your organisation needs.

1. characteristics
of a flexible
cloud contract
10
by Bertus Doppenberg, Service Delivery Manager, Proact VX
Opting for the cloud is about balancing several factors. CIOs
should decide what their priorities are in advance in order to
make the optimal choice: the greatest possible flexibility and
quality at the lowest possible risk and cost. This checklist helps
to keep control in the selection, contracting and purchasing of
cloud services.
2.
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3.
Cost
The promise of lower costs remains an important motivation for moving to the cloud. Generally, in order to achieve low
costs, you'll have to compromise on flexibility. Conversely, you can pay more for a higher degree of flexibility. Cost and
flexibility are thus strongly linked.
Conditions
It is unlikely that those who engage with the major players will be able to achieve the conditions they desire and
therefore their bargaining power is limited. On one hand this is a limitation, but on the other hand you know exactly
where you stand. It is important, however, when regarding the choice of a partner, to remain flexible when considering
the appropriate architecture.
Dedicated or shared
Opting for dedicated, private services enables more room for negotiation, especially if you compare this to purchasing
a standard, shared service. Infrastrcutre as a Service (IaaS) in a fully public model for example has less bargaining
power than in an environment that requires a lot of customisation.
checklist

2. Where are you in your journey?
Contact Proact with any questions you might have.We can provide advice which can help
formalise a cloud strategy that's connects to your goals. Using our Business Cloud Alignment
Methodology, we'll look where you are on the road towards IT as a Service.Are you in need of
infrastructure, application or workspace solutions to fulfill your requirements? Let us guide you
on the path to success.
Contact Proact now.
An organisation that has been in the cloud for a long time will
make different choices than an organisation just starting out
on their cloud journey.
Where major vendors are fairly transparent about what they
provide under what conditions, smaller parties can find this
quite difficult.
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Level of service
When agreeing the level of service in SLAs you face a disadvantage in that you can't predict
what you might need tomorrow. In order to get sufficient adaptive capacity, SLAs could be
adjusted to customer satisfaction – therefore becoming experience level agreements (XLAs).
Cultural fit
To establish a successful relationship between service providers and clients, a cultural fit is
crucial. Look critically at the provider’s primary focus: quality, low cost, efficiency, or the best
services. Equally, what influences them, customer relationships or technology? Look closely
at the aspects that you find important. A good way to find out more is to ask other customers
about their experiences.
Realism
Don't be easily tempted by a supplier who claims to be a 100% match with your requirements
straightaway. This may result in a standard service being offered which matches your
needs perfectly through coincidence. To establish a real match, you'll typically have to
collaborate and set out terms in a contract,which can take a few months.
Discover in practice
Major vendors are fairly transparent when it comes to what they provide under what
conditions. Smaller parties can find this quite difficult. Sometimes you have to discover, in
practice, which partner provides the value-add that you need. Engage with a provider that
seems to fit your organisation, ensure you have a good exit strategy and try things out for
six months or so. You can then decide to continue based on real experience, or whether
they're not right for you.
9.
10.
Check references
What can you expect from a partner? Don't just visit the website and check the responses to
an RFP, but look for references. What have they done for others and how were they assessed?
What is the track record and the solvency of the supplier? Where do they store data? It can
also be helpful to ask them questions concerning their maturity.
Industry-specific requirements
The type of cloud should match the type of customer. The financial sector, for example, is
limited when choosing a cloud environment because of requirements often imposed by
authorities. Think about privacy rules, compliance and required certification. Data must, in
certain cases, be stored in a specific location.
Maturity
To make the right choice when you're selecting a cloud provider, you also need to
understand yourself as a company. How experienced are you and what are your requirements
regarding workloads and applications? An organisation that has been in the cloud for a long
time will make different choices than an organisation just starting out on its cloud journey.
Cloud-readiness also plays a role. Are you, as an organisation, well prepared for being in the
director's seat?
8.

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Telephone +46 8 410 666 00 | E-mail info@proact.eu | Website www.proact-bca.eu
contact
Proact is Europe’s leading independent data centre and cloud services provider. Proact supplies business benefits by
helping companies and authorities to reduce risk and costs, and above all to supply them with flexible, accessible and
secure IT services. Proact’s cloud service operations manage 70 petabytes of information. Proact has completed more
than 3,500 successful projects all over the world to date.
The Proact Group has more than 800 employees and operates in 15 countries in Europe and in the USA. Proact was
founded in 1994, and its parent company Proact IT Group AB (publ) has been listed on Nasdaq Stockholm under the
symbol PACT since 1999.
Proact IT
PO Box 1205
SE-164 28 Kista
Sweden