This IDC Market Perspective explains the challenges faced by procurement in negotiating and contracting for cloud services. Adopting a cloud service includes elements of outsourcing and requires a new style of business relationship. For cloud vendors, understanding the challenges faced by their customers and prospects will help in designing products and pricing models that reduce these barriers.
"A shift from an on-premise system to a cloud service is more than a technological change, and it will often include the outsourcing of numerous business processes. Cloud vendors must help their customers understand how they will handle key processes that they will be taking over responsibility for," said Tom Seal, senior research director, IDC European Software.