New deals tie fees to revenue

摘要

While many virtual computing visions promise pay as you go utility-like pricing, some companies are already realizing metefed rates in outsourcing deals that tie service fees to business performance. Take Canada Life: The more insurance policies the company sells, the more money IBM gets for hosting its claims-processing application. Similarly, e-commerce service provider Digital River's fees are based on the amount of baseball paraphernalia sold through the Major League Baseball Web sites it built and maintains. There's growing interest among companies to broker outsourcing agreements that are based on business metrics rather than technology metrics such as CPU cycles or storage consumption, observers say.