In the early days of outsourcing IT as a managed service, it was not at all unusual for a managed services price to be all inclusive of assets, services and facilities. That bundle of services and assets usually came with a “black box” style pricing that was devoid of transparency and created a myriad of challenges from changes in technology to addressing equipment refresh. Worst of all, these “all in” deals made it virtually impossible to fire your service provider because of the challenges of removing the assets from the supplier upon termination. Despite these challenges, there are times when a customer’s asset strategy still calls for acquiring assets from their service provider. In those circumstances, customers should be aware of the inherent risks in including IT assets in an IT managed services agreement and structure the transaction to minimize the risks.
Assets could be included for just about any service category of a managed services agreement. For the purpose of this discussion we are going to focus on the Servers and Storage assets that comprise the central compute services for a company.