Other 'draft' where? Link?
Can see KittyCat's don't like water ... so an MP.
Years ago worked for a startup in Tx who applied to be an MP. Startup did have the technical expertise but declined (rejected) with explanation of the number of existing partners in North America ... continental USA. 2 of those are no longer MP's.
Will your contract with an MP cover when/if the MP is no longer an MP? Biz's change, don't they? May as well throw in some technical .. MP separation means you will get a DB dump and an archive of moodledata ... and that's it if you host with them ... which they will encourage (for good reasons).
Remember tech/internet/servers/hosting changes ... is changing ... not sure anyone should declare their current hosting a 'forever home'.
Not a Biz manager, but, if I were and saw 'less expensive' think I'd ask to see the numbers. Hmmm ... saw a quote once ... from an MP that is no longer an MP ... $4.00 per user per month ... is what I re-call. That's also just users ... what about other you've mentioned ... "migration service from Canvas LMS to Moodle LMS"
Got any RFP's out to MP's?
"Smaller community & lesser support."
Support given in community is just that ... given ... it's worth is always questionable ... and I include myself in that. Is it advice for those on MP systems or the DIY folks? Think concensus would be ... ? about an MP system ... MP is your source. DIY folks ... community.
Like I said ... nothing is free ... not all the time/24/7 just in time, etc. ... referencing ... "Provide training to stakeholders where needed." Gee, KittyCat ... what is your role in all this?
"institution that has 500 users and 50GB of courses" ... is not a large site IMHO ... besides ... it's not necessarily 'size' of courses, but how the courses are conducted ... using what mods/blocks ... and there better be video today. Let's not forget the most important 'stakeholder' ... students.
SMS ... hmmmmm ... have you checked Moodle plugins?
There was a discussion on an interface for WhatsApp ... which I read the other day had issues with specially crafted MP4 files. Hmmm ... is Signal better?
Is your institution prepared to pay for customized development of plugins? And how much is that?
Me thinks more thought needs to be given ... questions asked and answers found ... as best you can.
But ... that's just my 2 cents!