I have an article on supplier insolvency in the latest edition of Supply Management, the official journal of the Chartered Institute of Purchasing and Supply.
My article looks at the recent involvency of data centre company 2e2, which entered administration earlier this year. In order to keep the business going long enough to provide exit assistance and help customers move to other providers, the adminstrators demanded £1m from the business’s customers to cover their costs. If the funds were not provided then the business would be shut down without notice.
The case flags the importance of diligence and a strong contract when contracting for cloud hosting and data centre services. Whilst service providers will try to sell hosting services as a commodity service, it is essential that a properly thought out contract is in place when such services are used to host critical data or services.
In my article I set out some suggestions to help businesses ensure that the impact of supplier insolvency is mitigated.
You can read the article by following this link.
On June 11, 2013