ExpertPMP · Question 80 · Task 8: Negotiate project agreements
A project manager is negotiating a cloud infrastructure service agreement with a vendor for a mission-critical application. The vendor proposes 99.5% uptime with 2-hour response times for critical issues, while the business requires 99.9% uptime with 30-minute response times. The vendor states that meeting the business requirements would require a 60% price increase and dedicated support staff. What should the project manager do FIRST?
A project manager is negotiating a cloud infrastructure service agreement with a vendor for a mission-critical application. The vendor proposes 99.5% uptime with 2-hour response times for critical issues, while the business requires 99.9% uptime with 30-minute response times. The vendor states that meeting the business requirements would require a 60% price increase and dedicated support staff. What should the project manager do FIRST?
Answer options:
Accept the vendor's proposal since 99.5% uptime is reasonable for most business applications
Negotiate a middle ground at 99.7% uptime with 1-hour response times to balance cost and service levels
Conduct a business impact analysis to quantify the cost of downtime and determine the value proposition of higher service levels
Seek alternative vendors who can meet the business requirements at a more competitive price
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