RightNow Reinvents Cloud Vendor-Client Engagements with Cloud Services Agreement

RightNow Cloud Services Agreement Raises the Bar for Cloud Computing Providers

Cloud computing promised to fundamentally change how software was purchased and delivered, and while incredible technical benefits have been realized with SaaS delivery, benefits have yet to accrue on the business engagement side of the promise.  RightNow’s CSA solves this with an innovative approach for licensing enterprise cloud software solutions.  It provides the guaranteed-pricing benefits of a traditional Master Services Agreement (MSA) without the pain – hidden costs, escalating maintenance bills, lock-in, and shelfware.  Also, unlike traditional MSAs, the RightNow CSA ensures that RightNow’s success is dependent on its clients’ success.

The RightNow Cloud Services Agreement includes:

• Annual Usage Alignment Up or Down: Traditional agreements often force clients to buy more than needed to get long-term pricing predictability.  RightNow CSA puts an end to shelfware, allowing clients to rebalance usage up or down annually to meet business needs.
• Three Year Price Commitment Plus Three Year Renewal Price Cap: Traditional agreements are replete with hidden fees and price hikes, which make it impossible to predict future costs.  RightNow CSA provides clients with transparent and fixed pricing for six years, yet clients only have to commit for one year.
• Annual Termination for Convenience:  With traditional agreements, once the contract is signed, the client is locked in, leaving no incentive for vendors to exceed – or even meet – client expectations.   RightNow CSA provides clients with added flexibility with reduced risk; if RightNow isn’t executing to client satisfaction, the client can walk away. 
• Annual Pools of Capacity: Traditional agreements force clients to buy enough seats or capacity to cover their peak usage, even if most of it sits idle for most of the year.  RightNow CSA provides clients with an annual pool of usage over a 12-month period.  This allows clients to accommodate seasonality and fluctuations in their businesses without having to pay extra for spikes.
• Cash Service Level Credits:  With traditional agreements, clients receive, at best, credits toward future purchases. If RightNow falls short of the service levels guaranteed in a client’s customer care package, it will refund a percentage of the client’s subscription fees.
• Unlimited Capacity for 90-Day Pilots:  Traditional agreements require that clients buy before they try. As part of RightNow’s standard engagement process, clients are encouraged to try before they buy.
• In addition, CSA provides relief from the protracted and complex negotiations that are standard operating procedure with traditional agreements.  Because RightNow has reduced risk for clients, the company and its clients can spend less time negotiating contracts and more time achieving faster results.

RightNow’s CSA addresses the company’s Cloud Challenge, which CEO Greg Gianforte is issuing to the industry today, live from San Francisco.  See accompanying press release and watch the challenge here.

Comments on RightNow Cloud Services Agreement

“With our new Cloud Services Agreement, we are truly holding ourselves accountable for our clients’ success and delivering on the unfulfilled promise of the cloud.  Enterprise cloud computing shouldn’t involve shelfware, vendor lock-in, or classic enterprise software selling tactics.  RightNow is taking bold steps to reinvent how cloud vendors engage with clients.”
Greg Gianforte, chief executive officer, RightNow

“SaaS revolutionized how software was delivered, and RightNow’s Cloud Services Agreement is a call-to-action for cloud providers (and customers) that they need to get back to the roots of what's most innovative and impactful about the cloud -- its impact on business agility and value.”
Robert Mahowald, vice president, SaaS & Cloud Services, IDC
 
“The Cloud Services Agreement is just the type of premium experience I expect from RightNow, who I consider to be the premium customer experience company. CSA will make it easier for me to more quickly use their solutions rather than getting mired down in contract negotiations for quarters at a time. I am pleased to see the formalization of RightNow’s commitment to customer success with the introduction of the CSA.”
Ken Harris, chief information officer, Shaklee Corporation

Availability

The RightNow CSA is the company’s standard subscription agreement as of January 1, 2010.

RightNow’s CX Commitment

The CSA is a core component of the RightNow CX Commitment, a tangible set of activities and investments that deliver a premium client experience and ensure client success. The CX Commitment includes:

• Focus on Results. RightNow’s entire organization is aligned around ensuring that clients see business results from its solutions through its RightNow Project Methodology and Client Success Managers.  RightNow doesn’t kick off a project with a client until expected results have been agreed on, and doesn’t consider a project finished until those results have been met.
• Easy to Buy. RightNow’s Cloud Services Agreement makes it easy for clients to do business with RightNow and delivers a new set of standards for how enterprise cloud vendors should engage with clients.  
• Expertise. RightNow delivers expertise in every client engagement. The RightNow Centers of Excellence (COEs) help ensure client success by defining best practices, providing deep technical product expertise, and driving product innovation.  With more than 5,000 implementations, RightNow has the skill, business insight, and expertise to help clients succeed.

Community
Watch the announcement event at www.rightnow.com/march2010
Learn more at www.rightnow.com/cloudchallenge
Follow RightNow on twitter at @RightNowNews
Join the Cloud Challenge conversation on twitter #RNOWCSA