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
     

Join Our Newsletter

Receive updates each week on news, tips, events, comics and much more...

Can I Contribute To CloudTweaks?

Yes, much of our focus in 2015 will be on working with other influencers in a collaborative manner. If you're a technology influencer looking to collaborate long term with CloudTweaks – a globally recognized leader in cloud computing information – drop us an email with “tech influencer” in the subject line.

Please review the guidelines before applying.

Contributors

Cloud Infographic – Wearable Tech And Preventative Healthcare

Cloud Infographic – Wearable Tech And Preventative Healthcare

Wearable Tech And Preventative Healthcare There are so many exciting new opportunities available to utilize wearable technology in the future.  Areas such as nanotechnology disease monitoring, crowdfunding to wearable accessories are some excellent examples of the potential. Estimates vary, but appear to suggest that the market will produce between $14-50 Billion over the next few years. Included below

Ten Tips For Successful Business Intelligence Implementation

Ten Tips For Successful Business Intelligence Implementation

Ten Tips for Successful Business Intelligence Implementation The cost of Business Intelligence (BI) software goes far beyond the purchase price. Time spent researching, implementing, and maintaining your BI investment can snowball quickly and mistakes are often expensive. Your time is valuable – save it by learning from other businesses’ experiences. We’ve compiled the top ten

Knots And Cloud Service Providers

Knots And Cloud Service Providers

How Do These Two Compare? In Boy Scouts, I learned how to tie knots. The quickest knot you can tie is the slipknot. It’s very effective for connecting one thing to another via the rope you have. It was used in setting up tents, mooring boats to docks temporarily and lifting your food up into

Aggregated News

Popular News Sources

Virtual reality movies are coming

Virtual reality movies are coming

In a decade or two, going to the movie theater could feel as outdated as renting a VHS tape. That’s the future virtual reality enthusiasts from Oculus VR and elsewhere are sketching out, extolling the … Read the source article at Yahoo Finance About Latest Posts Follow Us!CloudTweaksEstablished in 2009, CloudTweaks.com is recognized as one of

Amazon Earnings: What to Watch

Amazon Earnings: What to Watch

Amazon Earnings Amazon.com is scheduled to report third-quarter financial results after regular trading hours Thursday. Here’s what you need to know:  Read the source article at WSJ Blogs About Latest Posts Follow Us!CloudTweaksEstablished in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the excellent CloudTweaks articles are

Hitachi Data Systems Launches New Public Safety and Smart City Solutions

Hitachi Data Systems Launches New Public Safety and Smart City Solutions

Smart City Solutions ORLANDO, FL–(Marketwired – Oct 23, 2014) – Hitachi Data Systems Corporation, a wholly owned subsidiary of Hitachi, Ltd. (TSE: 6501), today announced Hitachi Visualization, public safety solutions that foster safer, smarter, more efficient communities through connected intelligence. Read the source article at Yahoo Finance Add The CloudBuzz XML Feed To Receive News Updates