Things to keep in mind when signing up for managed services

Pricing is a very important part of SOW.
It is often the case that customers do not want to pay upfront fees for managed service contracts.
Customers are looking for a flexible, unit-based arrangement.
They want a capital expense model versus operating expenses.
And if you try to make the client pay the initial cost, they will most likely start looking for other companies.
So the cancellation clause in the contract is very important.
From a cost perspective, managed service contracts are heavy in the beginning and light in the latter part of the contract.
Depending on the size of the asset pool, you may need to set a separate contract termination fee for the asset portion.