April 19, 2012, 12:56 PM — So you've done all the right things in selecting your new cloud vendor. You went through a competitive bidding process, evaluated the bells and whistles offered by each vendor, identified the service that best meets your needs, got a great price for the first year, trained your staff on the new service, and mothballed your old in-house solution. A whole lot of work, wasn't it? Don't want to go through that again soon, do you? Well, if your contract doesn't effectively address the terms under which you can continue to use the service, then the cloud vendor may have you over a barrel at renewal time.
Avoid renewal surprises
Did the vendor offer you special introductory pricing for the first year? Maybe with a minimum volume commitment based upon the vendor's projected adoption rate? Great, but when renewal time comes around and your usage was a lot different than projected, and the vendor hits you with a much higher "list price". Not a good place to be. So do your homework, and take steps to assure reasonable and predictable costs beyond the initial contract period.