Procurement and implementation best practices can help operators get the most for their investments
In our previous article, "Is it time to move tolling systems to the cloud?
", we explored some of the aspects of cloud-based technologies that toll operators would need to consider when deciding on their next tolling system. Typically, this decision process will have occurred after a procurement process resulted in cloud-based tolling systems being proposed by vendors. Although less common, some toll operators may have made this decision before starting their procurement activities.
The benefits that toll operators experience once a new system goes live depend on how well the procurement and implementation phases are executed. Complicating the process is the fact that cloud approaches are relatively new to the toll industry. However, as more operators seek to implement cloud-based systems, best practices that ensure successful procurement and implementation are beginning to emerge.
Following the guidance below can result in operators receiving maximum value from their investments.
The phases involved in setting up a cloud-based system are interdependent. To receive the widest array of options and innovation available, procurement documentation should be left agnostic – targeting the benefits desired and not the specific methods. Toll operators that want to open up the possibility of cloud-based systems, or even those which may have made a decision to only entertain cloud-based systems, can be more confident their implementations will be successful when procurements include these best practices:
- Address stakeholder concerns. Technologists in the tolling industry often have strong opinions about cloud systems. Seeking stakeholders’ views, favorable or not, can provide valuable insights when developing procurement documentation that proactively addresses all concerns. Those concerns should also be covered in a way that allows for all types of proposals to be submitted, be they on-premises, cloud-based or hybrid systems.
- Leave procurement specs open. Even if there is a strong internal preference for cloud tolling systems prior to a procurement, procurement documents should be focused on delivering value through functional and performance requirements rather than prescribing a specific architecture. In other words, let the RFP focus on the “what,” while vendors determine the “how.” Leaving procurement requirements and specifications open to cloud-based, on-premises or hybrid solutions, toll operators can see what vendors recommend and then decide.
- Include flexible licensing terms. Cloud systems typically use Software-as-a-Service (SaaS) products with different license structures, requiring contracts to be more pliable in response.
- Talk with the finance departments. Cloud services typically do not follow the traditional cost structure. Here, the capital outlay is less, and the monthly operational costs are more. The project team will want to ensure the finance team is aware of this funding implication and that contract payment structures accommodate any finance team needs.
- Consider longer contracts and flexible hardware refreshes. Cloud-based systems can stay in service longer than on-premises systems with less comprehensive hardware refreshing. If supported by procurement policies, toll operators may want to consider longer contract durations supplemented with flexible equipment refresh and replacement mechanisms. Allowing proposers to craft a refresh approach that is targeted toward their specific system can enable a wider array of technical solutions and less frequent procurements.
- Avoid the “lift and shift.” Shifting on-premises solutions to the cloud without changing architecture often results in less optimization and higher operational costs. To maximize technical evaluations, determine whether proposers are copying and pasting an on-premises solution or taking advantage of cloud-native services and high-availability architecture.
- Prevent accidental exclusivity. Requirements need to avoid, to the extent practical, limiting who can bid or what they can bid. Without a thorough review, requirements from previous contracts may inadvertently make their way into the document, necessitating the use of one infrastructure method (on-premises vs. cloud) over another. Having a technical subject matter expert thoroughly review RFP requirements can prevent awkward operator-vendor question-and-answer scenarios.
- Reevaluate your database needs. Requirements for a centralized database can preclude the use of some cloud-based solutions and create inefficiencies for some cloud services. Some cloud systems will take advantage of more decentralized communications methods, for example, and a centralized database requirement would prevent this option from bein proposed. Toll operators should consider the value they were actually looking for by requiring a centralized database. Data warehouses, data lakes, or some mix of business intelligence tools could end up being the better options to deliver that value.
Cloud tolling presents operators with design, development, testing and transition planning options that may be unfamiliar. Reverting to “known” practices, used in previous on-premises implementations, may seem less risky and feasible, but not taking full advantage of cloud benefits could limit implementation efficiencies. Instead, operators are adopting these best practices:
- Entertain new approaches. When the project team commits to being flexible and open to new implementation approaches and processes at the beginning of the project, it pays dividends.
- Skill up. When the project team understands cloud architecture, technical meetings will be smoother and yield better results. For those team members unfamiliar with cloud-based tolling, condensed online courses about containerization, orchestration, cloud backup and high-availability methods (e.g., availability zones, multiregion deployment, etc.) can accelerate learning.
- Rethink the use of environments. Ensuring every customized configuration setting in the test environment makes it into the production environment can be challenging. Often, something is missed. In cloud infrastructure, entire test environments can be cloned to production or scaled and promoted, eliminating issues with configuration management during buildout.
- Understand rollback limitations. Many changes in cloud infrastructure can be easily reversed. However, some are more difficult, and others are so impractical that, after the change, it isn’t feasible to return to the previous state. Before approving each software release, successful operators ask the vendor to describe the rollback process thoroughly so the team understands the points of no return. Once those points are understood, the associated risks can often be mitigated or avoided.
- Proactively identify disentanglement issues. The multitenant nature of cloud services makes disentanglement more difficult. If a toll operator decides to handle operations and maintenance in-house at the end of the new contract, the team must understand the implications. Depending on the cloud services and platform used by the vendor, multitenant software instances can be broken into separate single-organization licenses for the toll operator to maintain. There are possible cost implications with this option, though, so it is important to envision what the future might look like at the outset.
Each vendor is the expert of its solution. During cloud-based system implementation, periodically asking something as simple as “Are there better ways of doing this now that we’re using cloud services?” can spark insightful conversations and could ultimately lead to more efficient project delivery. By incorporating these emerging procurement and implementation best practices, operators can maximize their investments and ensure their new systems are successful.
Transportation Technology Solutions
Richard Van Hyning leads the planning, integration and implementation of tolling and transportation technology systems. He has over 17 years of experience, including nine years leading software and hardware implementation projects, more than 15 tolling projects across two countries, and information technology expertise in cloud-based services, networking, on-premises infrastructure, virtualization, software design and development, interfaces, web services, database architecture and Agile methodologies.
Contact him at [email protected]
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National Toll Technology Consulting Practice
Aaron Hatch is a technical consultant with over 10 years of toll and ITS industry experience. He has led and supported nine roadside tolling projects across the country, some of which were the first production implementations of pioneering technologies, such as cloud architecture and vehicle occupancy detection. An accomplished software development leader, Aaron supplements his toll technology expertise with a deep understanding of cloud services, server and network infrastructure, embedded systems, user interfaces, middleware and databases.
Contact him at [email protected]
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