Cloud Sourcing
22 July, 2021
Capitalise on professional support when procuring cloud services
A significant advantage of cloud computing is the needs-based procurement of IT infrastructure. In practice, though, there are many pitfalls associated with cloud sourcing. Selecting service suppliers must be closely coordinated with technical and commercial requirements. Technological, legal, and financial aspects must be carefully analysed, assessed, and designed for negotiations and contracts.
Our independent experts assist you in acquiring the most suitable cloud service providers for your project at the most favorable conditions.
We support you through all material phases of the procurement process from market analysis, through the preparation of tender documents, up to contractual arrangements and final negotiations.
Challenges of cloud sourcing
Selecting suitable cloud service suppliers
The success of the cloud has led to the rapid growth of the cloud market and the continual differentiation of the services offered. Selecting the best service providers for extensive cloud projects is anything but trivial. In addition, the situation is highly dynamic at present due to political initiatives such as platform regulation and Europe's efforts to achieve digital sovereignty. For example, political projects such as GAIA-X are expected to have further implications for the cloud market. Prior to selecting a cloud service provider, it is always important to perform a thorough market analysis which also anticipates future trends.
Considering complexity when tendering
Making calls for tender for the procurement of cloud resources, services, or platforms is extremely complex. It requires a deep understanding of the market and the service provider landscape, as well as of the individual cloud requirements. In particular, an analysis of the technical levels of complexity is indispensable in order to prepare precise and appropriate performance specifications. Furthermore, statutory conditions and compliance-specific aspects must also be taken into account.
Evaluating internal charging models
In comparison with maintaining an in-house computer center, the IT costs incurred when purchasing cloud services are normally easy to localise. Nevertheless, a greater number of contracts with several cloud service providers and different invoicing models makes it much more difficult to show costs transparently. This aspect is often accompanied by new challenges for internal charging models which should be put to the test in the course of cloud implementation.
In most cases, companies cannot get around defining new internal agreements when implementing cloud services.
Deriving guidelines for the cloud strategy of strategic requirements
The cloud strategy which has been devised also lays the foundation for the procurement processes. It ensures that cloud sourcing stays within the guardrails of the business and IT strategy. In order to be consistent, the cloud strategy is therefore the starting point when deriving guidelines for cloud sourcing. This includes for example formulating criteria for selecting service providers, composing service level agreements, and drawing up comprehensive reporting.
Our Services for Cloud Sourcing
With the broadest cloud portfolio on the market, PwC supports you at each stage along your individual pathway into the cloud. We use the following services to help you find suitable cloud service providers and optimise the procurement processes relating to your IT purchasing.
- Market analyses
- Tendering
- Support during negotiations / contractual arrangements
- Preparing for transitioning
- Optimising IT procurement
Market analyses
Which cloud service providers and system integrators are best suited to realise your cloud project? We utilise detailed market analysis to provide you with deep insight into all relevant areas of the cloud market. In this way, you can be well informed in making the right procurement decisions and collaborate with those service providers who are most suitable for your cloud project and your situation.
Tendering
We support you throughout the entire tendering process and ensure a fast and focused process in line with your sourcing needs. For this purpose, we analyse the technical contents of the tender documents, define suitable selection and assessment criteria for tenders, and prepare a roadmap for the scheduling. Depending on your needs, we can support you intermittently or handle the entire process for you from a single source.
Support during negotiations / contractual arrangements
PwC's extensive expertise in arranging contracts assists you in agreeing on the best conditions for your cloud sourcing with the most suitable service providers. We support you in negotiating cloud service contracts, analysing contractual requirements, and formulating terms and conditions, including service level agreements (SLA) and key performance indicators (KPIs). This allows you to minimise procurement risks and take full advantage of the potential for reducing costs thanks to the cloud.
Preparing for transitioning
Transitioning from the current mode of operation (CMO) to the future mode of operation (FMO) harbors many risks. However, these risks can be minimised by means of detailed planning. We provide you with a comprehensive timetable for the transition including realistic schedules and milestones and bearing all the business-critical applications and services in mind. In this context, we assess the effects of each measure on the business, employees, and transition costs. An accompanying plan for change management and communication facilitates a smooth process.
Optimising IT procurement
With our effective management of service providers for cloud applications, cloud environments, and infrastructures, we assist you in maintaining cost transparency and optimising your cloud sourcing. To do so, we evaluate and assess your existing operating model and define standards, processes, and tools for improved cost management. By means of clear KPI dashboards, individualised reporting solutions, and the extensive automation of processes, you can ensure your cloud utilisation is as efficient as possible.
Related content
Follow us
Contact us
