A mid-sized health insurance company was renewing a clinical intelligence software tool. The vendor provided a renewal document for this on-premise software tool. However, hidden within the renewal document were requirements that the client migrate from the current on-premise solution to a not-widely-used cloud-based solution, which involved both a different data protection risk profile as well as additional, unplanned costs as it required the purchase of other vendor products to run in the cloud.
The Objective
Renew the software tool without incurring additional fees or subjecting the client to additional risk associated with the new cloud-based technology.
The Approach
Seprio identified the risks associated with the new cloud-based version of the product as part of a thorough review of the proposed contract documents and worked with the client to craft an acceptable risk mitigation strategy, which was negotiated, successfully, with the vendor.
The Result
In the end, the client will not be required to migrate to the Cloud until…
The vendor can prove the system is stable, as evidenced by at least one similarly-sized insurance company running the cloud solution in production for no less than 60 days at no less than 99.5% uptime, and
The client is comfortable the migration will pose no security risks and will not cost any more than the on-premise solution.
The final agreement also included assurances that the on-premise solution would be supported until such criteria are met, and a 40% reduction in cost, equaling over $650,000 in savings.
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Seprio is a sourcing and vendor management consultancy; helping companies achieve the best savings and performance by buying products or services the right way from the right people.