Gartner Blog Network

Are you trying to negotiate terms for a bag of hot dogs?

by Jay Heiser  |  September 27, 2016  |  Comments Off on Are you trying to negotiate terms for a bag of hot dogs?

Don’t try to spread traditional outsourcing practices over your cloud hot dog–it just won’t taste right.

On a 1-to-1 basis, such as traditional outsourcing, you can negotiate any form of service or contractual provision that you want–if you are willing to pay for it. But the same doesn’t apply to one-to-many offerings.

Cloud Service Providers are like sausage makers, providing a consistent and generic shrink-wrapped product based on an ambiguous supply chain. You don’t get to specify the ingredients in a package of hot dogs–you get what they sell.  Personally, I like sausage, but it requires a level of faith in the supplier.  Take it or leave it.

If you still want the taste of sausage, but want more certainty, then go find a butcher who will custom grind something for you, and expect to pay more for it. There are plenty of IT service offerings available today, and many reputable and experienced vendors willing to negotiate exactly what you want.

If you really want a mass marketer of hot dogs to customize their product, or contractual terms, then be prepared to buy a LOT of dogs. For most of us, that isn’t an option, and I’m betting that even the largest of enterprises have a limited patience for the number of multi-month (if not multi-year) hot dog negotiations they are willing to undertake simultaneously.





Additional Resources

View Free, Relevant Gartner Research

Gartner's research helps you cut through the complexity and deliver the knowledge you need to make the right decisions quickly, and with confidence.

Read Free Gartner Research

Category: cloud-computing  it-governance  risk-management  vendor-contracts  

Jay Heiser
Research VP
6 years at Gartner
24 years IT industry

Jay Heiser is a research vice president specializing in the areas of SaaS and public cloud risk and control. Current research areas include SaaS governance, cloud provider transparency and digital business risks.Read Full Bio

Comments are closed

Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes, with attribution to Gartner. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.