WSJ Falls Short: What Procurement Should Do in Cloud Contracting — Beyond the RFP [Plus+]

Cloud P2P

When cloud applications emerged in the mid-aughts (i.e., last decade), software providers marketed the solutions as a more flexible alternative to on-premise options. A better price, more choice in which modules you could purchase, ease of switching to a new provider when a superior technology came to market — this is what a recent article in The Wall Street Journal called the “promise” of cloud computing. And, apparently, the businesses behind this promise have fallen short, instead offering a model not substantially better than on-premise enterprise solutions. But this argument misses the main points of the on-premise versus on-demand debate by a wide margin. The WSJ article almost implies on-premise delivery is cheaper than getting your solutions delivered in a software-as-a-service (SaaS) format. This is hardly the case — and it frankly overlooks the true total cost of ownership (TCO) for on-premise solutions. This Spend Matters Plus article delivers practical advice for practitioners going to market for a SaaS/cloud solution whether to support procurement or any other type of area in the business.

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