There are 3 primary aspects of the entire Architecture-as-a-Service and Architecture-on-Demand models that need to be focused on. Those three aspects are, as a result, the focus on the Pricing Model in order to meet those requirements. The three aspects are:
Shift to CAPEX Budgets
There is a continuous pressure to reduce head count because of the need to reduce OPEX budgets. By focusing on pricing around Deliverables, the Client is able to capitalize the deliverables.
Obtaining Resources in a Timely Manner
Most organizations complain about how long it takes IT to deliver projects. There are two big issues that cause these delays – how long it takes to onboard personnel and that the actual process to create and implement solutions.
Flexible in Delivery of Architecture Services
there are two different types of Architectural activities that need to be considered (Solution and EA). There will be times that the client won’t know what the end product needs to be.
ECSA now provides a pricing model as part of their Architecture-as-a-Service / Architecture-on-Demand in the following manner:
Retainer with Fixed Pricing / Time and Materials Mix
This approach meets the needs of those three aspects.
By contracting with ECSA with a Retainer approach, the funds are set up at the beginning of the relationship. A Retainer allows for a reduction in the time it takes to begin Architecture activities simply because the activities are triggered by a request. Retainers also encourage the development of a long-term relationship between ECSA and the Client.
By working with a Fixed Price model, the Client is able to move the budgets from OPEX to CAPEX. The Fixed Price for each architecture activity will be provided before the activity begins. Once the work product is delivered and approved by the Primary Stakeholder, the Fixed Price will be deducted from the RETAINER. This approach is best for Solution Architecture activities. We have equations for all catalog items (see Figure 1 below for example)
TIME & MATERIALS
There are situations where fixed deliverables are not appropriate (eg. Mentoring, consulting, unique deliverables, etc.). In these cases, a T&M price structure will be used and the hours will be deducted from the RETAINER. The intent is to forecast before initiation but that can’t always work.
Organizations Consulted in Creation of Service Offering
The creation of this Service Offering was developed in consultation with the following organizations: