More customers are turning to operational-expense service model for networks, Motorola Solutions says

The state of Indiana recently entered into a contract with Motorola Solutions that goes beyond the cost of upgrading the statewide communications system now and includes management and services over time. Signed earlier this year, the $113 million contract includes $78 million for 20 years of services.

In a fact sheet on the upgrade, the state mentioned “biennial system upgrades” as a key benefit of the agreement, noting a guarantee that state and local agencies would have access to “the latest technology and new features.”

Additionally, Motorola’s migration assurance program (MAP) gives customers an alternative to trying to finance a network migration project all at once. MAP contracts typically run from three years to 10 years, Miller said.

“Instead of stretching out the financing, what we’re really doing is stretching out the project work,” Miller said. “So, we’re taking that project work and we’re saying, ‘All right, we’re going to do a project site in year one. We may do a site and a console in year two. We may add a bunch of subscribers in year three.’

“We balance that workload over the term of the contract, so they’re able to realize an op-ex style payment structure.”