KPI’s for Cloud Service Providers & Customers

KPI’s

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?
  • 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

About CloudTweaks

Established in 2009, CloudTweaks is recognized as one of the leading authorities in connected technology information and services.

We embrace and instill thought leadership insights, relevant and timely news related stories, unbiased benchmark reporting as well as offer green/cleantech learning and consultive services around the world.

Our vision is to create awareness and to help find innovative ways to connect our planet in a positive eco-friendly manner.

In the meantime, you may connect with CloudTweaks by following and sharing our resources.

View All Articles

Sorry, comments are closed for this post.

Comic
Fintech Systems, Advancements and Investments

Fintech Systems, Advancements and Investments

Fintech Growth According to a recent report, global investment in fintech companies including both venture-backed and non-venture-backed businesses reached $9.4 billion in the second quarter of 2016; investment in venture capital-backed fintech startups, however, fell by 49%. Nevertheless, the Pulse of Fintech, published jointly by KPMG International and CB Insights, suggests venture capital investment in…

How Identity Governance Can Secure The Cloud Enterprise

How Identity Governance Can Secure The Cloud Enterprise

Securing The Cloud Enterprise Cloud adoption is accelerating for most enterprises, and cloud computing is becoming an integral part of enterprise IT and security infrastructure. Based on current adoption trends, it’s clear that the vast majority of new applications purchased by organizations will be SaaS applications. The allure is evident, from cost savings to speed…

Significant Emerging Technologies To Lookout For In 2017

Significant Emerging Technologies To Lookout For In 2017

Emerging Technologies The entire world is being transformed right before our eyes. Emerging technologies are developing at break-neck speeds, and the global community needs to be prepared for what lies in the horizon. As with anything new or evolving there is benefit versus risk to consider. Most of the up-and-coming technologies that will soon affect…

In The Fast Lane: Connected Car Hacking A Big Risk

In The Fast Lane: Connected Car Hacking A Big Risk

Connected Car Hacking Researchers and cybersecurity experts working hard to keep hackers out of the driver’s seat. Modern transportation has come a million miles, and most all of today’s vehicles are controlled entirely by digital technology. Millions of drivers are not aware that of the many devices in their digital arsenal, the most complex of…

Having Your Cybersecurity And Eating It Too

Having Your Cybersecurity And Eating It Too

The Catch 22 The very same year Marc Andreessen famously said that software was eating the world, the Chief Information Officer of the United States was announcing a major Cloud First goal. That was 2011. Five years later, as both the private and public sectors continue to adopt cloud-based software services, we’re interested in this…

The Fully Aware, Hybrid-Cloud Approach

The Fully Aware, Hybrid-Cloud Approach

Hybrid-Cloud Approach For over 20 years, organizations have been attempting to secure their networks and protect their data. However, have any of their efforts really improved security? Today we hear journalists and industry experts talk about the erosion of the perimeter. Some say it’s squishy, others say it’s spongy, and yet another claims it crunchy.…

The Security Gap: What Is Your Core Strength?

The Security Gap: What Is Your Core Strength?

The Security Gap You’re out of your mind if you think blocking access to file sharing services is filling a security gap. You’re out of your mind if you think making people jump through hoops like Citrix and VPNs to get at content is secure. You’re out of your mind if you think putting your…

Having Your Cybersecurity And Eating It Too

Having Your Cybersecurity And Eating It Too

The Catch 22 The very same year Marc Andreessen famously said that software was eating the world, the Chief Information Officer of the United States was announcing a major Cloud First goal. That was 2011. Five years later, as both the private and public sectors continue to adopt cloud-based software services, we’re interested in this…

How You Can Improve Customer Experience With Fast Data Analytics

How You Can Improve Customer Experience With Fast Data Analytics

Fast Data Analytics In today’s constantly connected world, customers expect more than ever before from the companies they do business with. With the emergence of big data, businesses have been able to better meet and exceed customer expectations thanks to analytics and data science. However, the role of data in your business’ success doesn’t end…

Explosive Growth Of Data-Driven Marketing

Explosive Growth Of Data-Driven Marketing

Data-Driven Marketing There is an absolute endless amount of data that is being accumulated, dissected, analyzed with the important bits extracted and used for a number of purposes. With the amount of data in the world has already reached into multiple zettabytes annually. A Zettabyte is one million petabytes or one thousand exabytes. With data…

Cloud Infographic – The Internet Of Things In 2020

Cloud Infographic – The Internet Of Things In 2020

The Internet Of Things In 2020 The growing interest in the Internet of Things is amongst us and there is much discussion. Attached is an archived but still relevant infographic by Intel which has produced a memorizing snapshot at how the number of connected devices have exploded since the birth of the Internet and PC.…

Cloud Computing Services Perfect For Your Startup

Cloud Computing Services Perfect For Your Startup

Cloud Computing Services Chances are if you’re working for a startup or smaller company, you don’t have a robust IT department. You’d be lucky to even have a couple IT specialists. It’s not that smaller companies are ignoring the value and importance of IT, but with limited resources, they can’t afford to focus on anything…

Shadow IT To Remain A Focus For Both Cloud Vendors And CIOs

Shadow IT To Remain A Focus For Both Cloud Vendors And CIOs

Shadow IT To Remain A Focus Shadow IT, a phenomenon defined as building internal IT systems without the official organizational approval has been a growing concern for CIOs over the last few years. In 2015, it climbed to the top of the list of the emerging IT threats, with as much as 83% CIOs reporting…

Why Cloud Compliance Doesn’t Need To Be So Overly Complicated

Why Cloud Compliance Doesn’t Need To Be So Overly Complicated

Cloud Compliance  Regulatory compliance is an issue that has not only weighed heavily on the minds of executives, security and audit teams, but also today, even end users. Public cloud adds more complexity when varying degrees of infrastructure (depending on the cloud model) and data fall out of the hands of the company and into…

Cloud Infographic – Big Data Predictions By 2023

Cloud Infographic – Big Data Predictions By 2023

Big Data Predictions By 2023 Everything we do online from social networking to e-commerce purchases, chatting, and even simple browsing yields tons of data that certain organizations collect and poll together with other partner organizations. The results are massive volumes of data, hence the name “Big Data”. This includes personal and behavioral profiles that are stored, managed, and…