Sale-to-Service – What is a Sale-to-Service™?

The S2S is similar to a commercial real estate sale-leaseback but rather than buying tangible assets like equipment or real estate, Leeward acquires a company’s systems, processes, and data which reside on a server in a data center or in the cloud. The S2S contract has financial similarities to a sale-leaseback but, among other distinctions, the seller gets access to the systems and data as a service and not through physical possession like a traditional sale-leaseback. S2S fees are operating expense to the company and are contingent on service levels.