KPI’s for Cloud Service Providers & Customers

KPI’s for Cloud Service Providers & Customers

Everyone by now knows and agrees that “cloud” is here to stay but enterprises are unsure on how to make the best of the new paradigm and integrate it into their business processes to remain competitive and cost efficient.

One of the challenges faced by potential cloud customers is “how to gauge the best fit cloud services provider to help meet their business objectives”. In this article we will address few key concepts to help new and existing cloud users and customers in making better decisions when choosing the cloud service providers.
In our discussions with customers and partners we are frequently asked about:
  • How to evaluate cloud providers who provide cloud infrastructure as a service (like Amazon / Rackspace ) and applications on the cloud with SaaS model (like SalesForce.Com) ?
  • KPI’s (key performance indicators) to use when evaluating cloud service providers to fulfill a specific IT or business objective?
  • KPI’s (key performance indicators) should the cloud service providers be watching, measuring & evaluating themselves with?
Recommended standard key performance indicators (KPI) that cloud service providers can use to measure their success are:
  • Performance
    • Utilization – Ability to maximize workloads
    • Capacity – Size of the workload compared to available infrastructure
    • Satisfaction – Measure of completion percentage
  • Time
    • Promptness – measures response times
      • Example : MTTR – mean time to recovery
    • Delivery – average rate of successful delivery
    • Periodicity Assumption – actual versus expected outcome
  • Quality
    • Default Rates – Measurement of any failures or downtime
      • Example : MTBF – mean time between failures
    • Automation – Level of automated responses
    • Depth and Range of services provided
    • Pragmatic – level of ease of use
  • Cost
    • Actual – measure of any reduction in cost/expenses
    • Variable – measure of variable cost change
    • Fixed – measure of any changes in costs that are deemed fixed
  • Risk
    • Ability to manage risk
    • Infrastructure , processes and policies to manage risk
  • Profitability
    • Revenue – amount of profits generated
    • Growth – ability to increase profits
      • customers
      • initiatives
      • employees

Now let us get a handle on key performance indicators (KPI) that cloud hosting buyer should be looking for in cloud hosting services partner in order to subscribe to a viable and sustainable cloud hosting service.

Recommended KPI’s from a customer perspective when choosing the best fit cloud hosting partner should be:
  • Featured Services
    • Quality of featured services metrics
  • Cost of Featured Services
    • Basic Vs. Premium Vs. Tiered
  • Performance
    • Service Metrics
    • Platform Metrics
  • Availability
    • Uptime Metrics
    • Rate of successful service availability Metrics
  • SLA’s
    • SLA Success Metrics
  • Risk Management
    • Incident Response and Management Metrics
  • Support
    • Basic Vs. Premium
    • Live help Vs. Online
  • Cloud Service Provider Financial Viability
    • Check broad financial information if available for sustainability metrics

The aforementioned pointers are by no means a comprehensive list of items to be addressed when dealing with KPI’s in the cloud space but can surely be used as pointers for basic due diligence when going into the business of buying or selling cloud hosting services. Each one of the above KPI’s can be further extrapolated for more specific avenues of measurement. These KPI’s can have a direct impact on cloud service provider return on investment (ROI) and viability in general which in turn effects customers choice in partnering with a cloud service provider. Fortunately for customers , today there are a handful of cloud management and brokerage companies like Cloud Creo in the marketplace who know the burgeoning cloud hosting space well and are able help customers in their journey to the “cloud” to realize their business objectives.

By Harry Sangha

———————————————

Harry is an Inventor, entrepreneur and cloud computing evangalist.  He is also the Founder of: www.cloudcreo.com a Cloud Management Platform and Appliance Factory. 

Follow Us!

CloudTweaks

Established in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the excellent CloudTweaks articles are provided by our own paid writers, with a small percentage provided by guest authors from around the globe, including CEOs, CIOs, Technology bloggers and Cloud enthusiasts. Our goal is to continue to build a growing community offering the best in-depth articles, interviews, event listings, whitepapers, infographics and much more...
Follow Us!

0 Responses to KPI’s for Cloud Service Providers & Customers

  1. very helpful resource, I’ve a question here about  specified KPI for IaaS or PaaS
    I’ve looked for lot of these over internet but didn’t found helpful material
     


CloudTweaks Sponsors - Find out more!


Popular

Top Viral Impact

Technology Advice Report: 2014 Business Intelligence Buying Trends

Technology Advice Report: 2014 Business Intelligence Buying Trends

Technology Advice Report: 2014 Business Intelligence Buying Trends For nearly every business, the concept of business intelligence is nothing new. Ambitious organizations have been searching for any type of data-driven advantage for some time now – perhaps for as long as they’ve existed. However, the historical use of competitive intelligence pales in comparison to the…

Cloud Infographic – Cloud Computing And SMEs

Cloud Infographic – Cloud Computing And SMEs

Cloud Infographic – Cloud Computing And SMEs SMEs (Small/Medium Sized Enterprises) make up the bulk of businesses today. Most cloud based applications created today are geared toward the SME market. Accounting, Storage, Backup services are just a few of them. According to the European Commission, cloud based technology could help 80% of organisations reduce costs by…

Using Big Data To Make Cities Smarter

Using Big Data To Make Cities Smarter

Using Big Data To Make Cities Smarter The city of the future is impeccably documented. Sensors are used to measure air quality, traffic patterns, and crowd movement. Emerging neighborhoods are quickly recognized, public safety threats are found via social networks, and emergencies are dealt with quicklier. Crowdsourcing reduces commuting times, provides people with better transportation…

BYOD Will Continue To Define Workplaces In 2014

BYOD Will Continue To Define Workplaces In 2014

BYOD Will Continue To Define Workplaces In 2014 The bring-your-own-device trend has been the subject of scrutiny ever since its initial formation. Given how quickly personal smartphones and tablets became a fixture in everyday life, it makes perfect sense that these mobile machines would slip into workplaces. While BYOD has caused headaches for many businesses,…

Cloud Infographic: Most Used Cloud Apps

Cloud Infographic: Most Used Cloud Apps

Cloud app and analytics company, Netskope released its quarterly Cloud Report. The new report reveals that enterprise employees are using an average of 397 different cloud apps (most of which are unsanctioned), when IT estimated they have 40-50 — that’s a tenfold underestimation. Below is an infographic provided courtesy of the group at Netskope which goes into further detail.…


Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

You can help continue to support our community by social sharing, sponsoring, partnering or contributing to this great educational resource.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021
contact@cloudtweaks.com

Join our newsletter