The advantages to the cloud are many, but so are the risks. Our client wanted an IT environment in the cloud for agility and cost savings to support a spin-off. However, the chosen provider's standard agreement didn't provide sufficient assurances that processes would endure, that the company's data would be protected and kept confidential, and that the company would maintain governance and control as it was accustomed to with data centers.
The client turned to KPMG for knowledge and experience in cloud services, in managed services, and in outsource contracting to help them perform due diligence and negotiate with the provider. With KPMG's support they negotiated a hybrid cloud/managed services deal, which brought together standard cloud services overlaid with a "wrapper" of typical managed service practices including strong contractual protections, augmented service levels, enhanced reporting mechanisms, and defined support and recovery procedures.
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