A Unique Opportunity

            One of my favorite events each year is the IT Procurement Summit produced by Caucus – the Association of Technology Procurement Professionals

            What sets the IT Procurement Summit (ITPS) apart from other conferences, seminars and workshops is that its intimate size creates an environment charged with enthusiasm for the profession. 

            Thanks to the efforts of the Caucus Executive Advisory Committee – a dozen dedicated volunteers from some of the nation’s leading enterprises – hundreds of topic suggestions and dozens of speaker applications are distilled into an information-packed two day, multi-track event. ITPS speakers are actual practitioners of the trade, bringing their practical experience and insight into every session. 

            The ITPS isn’t “pay to play;” that is, speakers don’t pay for the privilege, and they don’t attend with the purpose of hawking their wares. (In fact, supplier participation and access is carefully restricted.) 

            Speakers are carefully selected based on their professional experience and the topic of their presentation.  The result: a more compelling presentation and a more compelling conference. 

            And because of its intimate size, networking opportunities abound. So it’s a great chance to meet others in the profession, problem solve, and share ideas, information and experience.

            The 2011 IT Procurement Summit will be held on October 27 & 28 in Orlando, FL.

            There are two unique opportunities in connection with the ITPS will disappear on December 31.

            First, the Caucus Executive Advisory Committee issued its Call for Speakers earlier this fall.  If you’re a dynamic speaker with experience in the technology acquisition field, then you can contribute to the profession by submitting a speaking proposal by December 31.  More information may be found here. 

            Second, the Caucus Executive Advisory Committee has authorized steep discounts for those people who register by December 31 and pay by January 31.  Caucus members can register for $895 per person and non-members can register for $1,295 per person.  Email Caucus Members Services or phone (407) 740-5600 for more information.

            I hope you’ll consider taking advantage of these opportunities, so you can see why I think it’s such a great event.

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Technology Acquisition Professionals to Convene in Chicago

(Orlando, FL – 07/28/10) CAUCUS, The Association of Technology Acquisition Professionals, announced it is holding its 2010 IT Procurement Summit (ITPS) in Chicago on September 20-21.  This is the 15th year Caucus will hold this significant industry event.  “Our members have been working hard to organize this event,” said Sarepta Ridgeway of CenterPoint Energy and Conference Chair.  Professionals, both members and nonmembers, will attend to learn the very latest best practices for putting together cloud computing and SaaS deals, software license agreements, telecom transactions and service level agreements.  Risk management , supplier relationship management and CTPE / CTPS Certification classes with exam  will be among the other subjects or areas to participate in.

The annual summit provides acquisition professionals with the latest information on all facets of the acquisition process.  “Networking opportunities abound, many of the interactions initiated at the conference develop into long-term business relationships,” said association founder Joe Auer. “If you do any type of technology acquisition, this is where you need to be on September 20-21.  The presenters are the very people that do these types of deals…everyday!”

Attendees come from a variety of disciplines including procurement, finance, legal, IT and contract management and represent organizations of all sizes from all sectors of the economy, including large global corporations;  small and medium sized businesses; not-for-profits, government agencies, states and municipalities.

The 2010 ITPS will be at the InterContinental Hotel on Michigan in Chicago and the early-bird has a deadline of August 12th.

Caucus – Established in 1994, Caucus is the only association serving the specialized needs of technology acquisition professionals. Members come from a variety of disciplines including procurement, finance, legal, information technology and contract management.  Membership gives them an invaluable edge – the Caucus Advantage. Caucus also provides certification in this field as a CTPE or CTPS.

Contacts:

ICN
407-740-0700
Ja4@dobettdeals.com
http://caucusnet.com

Technology Lease Economics 101

by Deb Mogensen

I recently concluded a consulting engagement with a client that has several leases in place for its technology equipment.  It is its CFO’s business policy to lease all equipment over a certain dollar amount in order to preserve cash.  Makes sense, right?  This policy would make great business sense, if only the client also implements a strong leased asset management program to support the CFO’s intent.

Let me explain.  First of all, the Master Lease Agreements (MLAs) were not ideal in that the terms and conditions were not negotiated to be favorable to the Lessee, or at least balance the favorability between the Lessor and Lessee.  Just to provide some examples, the T&Cs were favorable to the Lessor in the following ways:

1)         Notice was required 90 days in advance.

2)         End of lease (EOL) terms only offered a Fair Market Value (FMV) buyout, no extension (other than 90-days at the original lease rate), and no opportunity to make multiple choices (extend, buyout, etc.).

3)         Lessor chooses the return location for all the equipment (this leaves the option open to anywhere in the world or multiple locations).

4)         No cap on FMV.

5)         No notice to Lessee that EOL was approaching

These are just a few of the provisions that I recommend caring for in the MLA up front.

Secondly, the client did not have en effective EOL management strategy in place.  The client was returning equipment when it was done using it; sometimes before the EOL and sometimes well after.  No analysis was being done to determine if it made sense to buyout the equipment and/or negotiate a FMV extension as opposed to continuing to lease at the original lease charge.

I think you get the picture.  Leasing was costing this client a bundle of extra money and the leasing companies loved them.  I know this was not the CFO’s intent, but he needed to take the policy a step further and implement an effective and strategic leased asset management policy to manage the leases.  This is the only way to make leasing effective for the Lessee.

If you want to get in contact with Deb Mogensen or any other ICN Consultant, please contact 407-551-2766.