Cloud and As-A-Service

Cloud, mobility and the Internet of Things (IoT) are providing opportunities for far greater automation of business processes. This is driving the growth of the “As-A-Service” economy, as new types of on-demand services start to replace functions that have traditionally been performed "on premises".

These changes are leading to the development of entirely new commercial models – and they require a fresh approach to contracting. Flexibility and agility are becoming the holy grail, as corporations can’t afford to be left behind.

Cloud is changing the pricing models, the performance metrics, the risk allocation, and the way in which services are “procured”. It is changing the very nature of the relationship between large corporations and their vendors.

Our experience

We advise Australian and global corporations on the strategic planning and contract development associated with migrating to cloud and the As-A-Service models. Clients we work with on cloud strategies include:

  • Three of the ‘big-four’ Australian banks – advising on cloud strategies for various IT solutions.
  • Rio Tinto – advising on its recent landmark deal with Accenture, involving the transformation of Rio Tinto’s core enterprise IS&T systems to a global “As-A-Service” offering, based in the Cloud. This is one of the largest As-A-Service cloud projects undertaken in the Asia Pacific region to date.
  • Telstra – advising in relation to its Global Cloud Strategy and a first-of-its-kind integrated, over-the-top video content streaming and analytics cloud platform service.
  • A ‘big-four’ accounting firm – advising on a range of projects relating to its transformative use and provision of cloud services.

What’s new here?

Cloud is turning all kinds of business functions into “As-A-Service” - back-office functions, production processes, supply chain management and customer-facing operations. These services can be provided “on demand” with far greater flexibility and agility than we have seen in the past.

This requires a fresh approach to contracting with:

  • Contract and compliance regimes for managing migration to the cloud across multiple jurisdictions – ensuring ongoing compliance in relation to privacy, security and data protection.
  • An outcomes-based approach, based on the corporation’s required business outcomes, as they evolve over the contract term – ultimately leading to contract simplification.
  • The incorporation of consumption-based pricing models.
  • New approaches for ensuring ongoing competitiveness right up until the last day of the contract term (in relation to both price and service solutions).
  • New approaches to performance management, ensuring ongoing alignment between the corporation's required business outcomes and the performance metrics of its vendors.
  • New approaches around termination rights, maximising the corporation’s flexibility.
  • New governance models, focused on driving ongoing innovation.
  • New contract structures that achieve all of this in a coherent, integrated and user-friendly manner.

We work in a fast and agile manner, with speed to contract being a primary goal. We help our clients to think outside the square, move away from their legacy models where appropriate, push the boundaries conceptually and then integrate it all together.