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

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
     

Recent

Wearable Tech Jobs Of The Future

Wearable Tech Jobs Of The Future

Wearable Tech Jobs Wearable Technology is a very exciting industry and the sky’s the limit with new possibilities for businesses and consumers. The new technologies will make our lives easier in terms of convenience, while in other ways more complicated due to learning curve of each new product. Lets take a look at wearable tech in…

How M2M Differs From IoT Internet of Things

How M2M Differs From IoT Internet of Things

What Is M2M Machine To Machine? When it comes to communications between machines, the terms Machine to Machine (M2M) and the Internet of Things (IoT) are seemingly similar to each other. In fact, there is a very strong connection between both terms which is why they are often used as the same. However, that is…

Cloud Infographic – Top Vulnerable Applications

Cloud Infographic – Top Vulnerable Applications

Top Vulnerable Applications  As you use the Internet on a daily basis, you probably come across cyber security topics, but rarely glance at them twice. After all, cyber security threats don’t concern you, right? Well, that’s not exactly true. Cyber attacks are more widespread than you can imagine and they may be targeting your devices as…

Popular Archives

Cloud Infographic – Interesting Big Data Facts

Cloud Infographic – Interesting Big Data Facts

Big Data Facts You Didn’t Know The term Big Data has been buzzing around tech circles for a few years now. Forrester has defined big data as “Technologies and techniques that make capturing value from data at an extreme scale economical.” The key word here is economical. If the costs of extracting, processing, and making use…

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth The Internet of Things is the latest term to describe the interconnectivity of all our devices and home appliances. The goal of the internet of things is to create universal applications that are connected to all of the lights, TVs, door locks, air conditioning, and…

Sponsors

The Many Hats Of Today’s IT Managers

The Many Hats Of Today’s IT Managers

The Many Hats of IT Managers In years past, the IT department of most large organizations was much like a version of Middle Earth: a mysterious nether world where people who seemed infinitely smarter than the rest of us bustled around, speaking and typing languages that appeared indecipherable, yet, which made our world work. They…

Selling Your Business To Your Employees

Selling Your Business To Your Employees

Mobility For Your Employees It may seem a radical notion, the idea of selling your business to the people who work for you, but this is the era in which we now work. Employees of all levels are all incredibly aware of their options when it comes to mobility and employability. This doesn’t mean that…

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.

CloudTweaks Comic Library

Advertising