Five Ways Service Providers Are On Course To Miss The Boat In Cloud Services

Five Ways Service Providers Are On Course To Miss The Boat In Cloud Services

Five Ways Service Providers Are On Course To Miss The Boat In Cloud Services

Service providers (SPs) have a golden, but short-lived opportunity to commercialize the $30B cloud services market before AWS and others call it “game over.” By being more agile, able to scale and playing to their strengths, SPs can use the cloud to not only consolidate their existing revenue streams but create new ones.

Trouble is, outdated mindsets and a lack of customer-first innovations are causing too many SPs to let the cloud services opportunity sail away without them. Here’s a look at the five ways SPs will miss the cloud services boat if they don’t move quickly:

1) Taking a Defensive Approach to Cloud Services

SPs today have two options: passively concentrate just on protecting their existing business. Or recognize the cloud tide is coming in and make a plan to lead their market with a cloud services model based on innovation and differentiation. A differentiated model, with simplified uplift to commercialization, and growth through resellers and the channel offers an offensive strategy for accelerated growth that will help SPs thrive.

Those SPs that will be successful in cloud services will understand their markets and customers better than others, anticipate the next wave of innovation — and then create services that deliver greater benefits.

2) Missing the Shift from Infrastructure to Apps and Services

Bigger cloud players with more resources are driving innovation and cost-reduction in cloud infrastructure; that’s not where SPs will make their mark. Instead, customers are looking to SPs to provide solutions beyond just infrastructure. They want preconfigured business applications (e.g., email, CRM) that can easily be deployed, much like what consumers get from an app store. This capability to deliver application provisioning offers SPs an opportunity to differentiate and drive new revenue in a market where they can excel.

What’s more, Infrastructure as a Service (IaaS) can speed parts of the application provisioning process. But without the flexibility and agility to deliver complete applications to end users, SPs cannot take full advantage of the benefits of IaaS.

The concept of cloud blueprints offers SPs a way to drive extraordinary levels of efficiency and effectiveness, increase quality of service and reduce cost. Like blueprints used in the construction industry, cloud blueprints contain everything needed to successfully build, deploy and share applications in the cloud including server, software, storage, network, images and firewall details, and importantly, how they all relate.

3) Failing to Offer Flexible Contracts and Service Provisioning

SPs that want to keep customers locked into inflexible contracts will fail. Instead, SPs must offer customers customized billing based on their individual requirements and help support complex reseller models by billing accordingly.

All cloud services billing models have pros and cons depending on the customer, usage model and internal budgeting requirements. The key is for SPs to understand that a number of different models exist, and the benefits each supports. I’m an advocate of Burstable Virtual Resource Pools that offer a set of virtual resources in a multi-tenant platform with a fixed total configuration, the ability to be reconfigured as required, and payable as a single monthly fee but able to “burst” capacity by the hour/usage as required for a separate (possibly premium) rate.

4) Adopting a ‘Not Invented Here’ Strategy

Too many SPs have their heads in the sand about the tremendous business opportunity inherent in offering cloud services. Others are taking a doomed DIY approach to building cloud capabilities, costing them time and money.

The cloud is exponentially more complicated than traditional hosting. SPs could spin their wheels trying to successfully build cloud capabilities themselves and still find themselves woefully behind. Others are betting – and losing — on open source solutions like OpenStack that lack the necessary functionality (by itself) to tackle real business challenges.

To be successful, SPs need to partner with a proven cloud services vendor that can help them quickly deploy differentiated services specific to their customers’ needs.

5) Failing to Develop a Niche

Cloud computing offers SPs the opportunity to position themselves at the heart of their customers’ operations. It’s an opportunity for them to leverage trusted relationships, be unique, and expand their services…and their margins, too. In today’s cloud services world, SPs can become one-stop shops for their customers’ needs; ranging from the homogeneous IT infrastructure services they provide today, to a growing array of high margin applications and services. SPs can offer it all and deliver it with one service level agreement, one point of contact and one bill.

By adopting extensible, customizable, flexible solutions, SPs can adapt to changing cloud demands, providing limitless opportunities. This gives them the ability to quickly commercialize the cloud and grow with no limits to stay competitive, no matter what environment is being developed on. The cloud is handing SPs a bigger, brighter future, but they have to change course today if they have any hope of getting onboard.

Tony Lucas Flexiant

By Tony Lucas

Tony is Founder and Senior Vice President, Product with Flexiant (www.flexiant.com), a leading global provider of cloud orchestration software solutions.  Lucas spent 12 years as CEO and majority owner of XCalibre Communications, a web hosting company. During the latter half of this period, he developed the FlexiScale cloud computing technology, which now forms the core component of Flexiant’s Cloud Orchestrator platform. Lucas is a frequent speaker at cloud computing conferences and a recognised expert in his field.

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
Staying on Top of Your Infrastructure-as-a-Service Security Responsibilities

Staying on Top of Your Infrastructure-as-a-Service Security Responsibilities

Infrastructure-as-a-Service Security It’s no secret many organizations rely on popular cloud providers like Amazon and Microsoft for access to computing infrastructure. The many perks of cloud services, such as the ability to quickly scale resources without the upfront cost of buying physical servers, have helped build a multibillion-dollar cloud industry that continues to grow each…

Why Security Practitioners Need To Apply The 80-20 Rules To Data Security

Why Security Practitioners Need To Apply The 80-20 Rules To Data Security

The 80-20 Rule For Security Practitioners  Everyday we learn about yet another egregious data security breach, exposure of customer data or misuse of data. It begs the question why in this 21st century, as a security industry we cannot seem to secure our most valuable data assets when technology has surpassed our expectations in other regards.…

Four Recurring Revenue Imperatives

Four Recurring Revenue Imperatives

Revenue Imperatives “Follow the money” is always a good piece of advice, but in today’s recurring revenue-driven market, “follow the customer” may be more powerful. Two recurring revenue imperatives highlight the importance of responding to, and cherishing customer interactions. Technology and competitive advantage influence the final two. If you’re part of the movement towards recurring…

Micro-segmentation – Protecting Advanced Threats Within The Perimeter

Micro-segmentation – Protecting Advanced Threats Within The Perimeter

Micro-segmentation Changing with the times is frequently overlooked when it comes to data center security. The technology powering today’s networks has become increasingly dynamic, but most data center admins still employ archaic security measures to protect their network. These traditional security methods just don’t stand a chance against today’s sophisticated attacks. That hasn’t stopped organizations…

Cloud-based GRC Intelligence Supports Better Business Performance

Cloud-based GRC Intelligence Supports Better Business Performance

Cloud-based GRC Intelligence All businesses need a strategy and processes for governance, risk and compliance (GRC). Many still view GRC activity as a burdensome ‘must-do,’ approaching it reactively and managing it with non-specialized tools. GRC is a necessary business endeavor but it can be elevated from a cost drain to a value-add activity. By integrating…

Multi-Cloud Integration Has Arrived

Multi-Cloud Integration Has Arrived

Multi-Cloud Integration Speed, flexibility, and innovation require multiple cloud services As businesses seek new paths to innovation, racing to market with new features and products, cloud services continue to grow in popularity. According to Gartner, 88% of total compute will be cloud-based by 2020, leaving just 12% on premise. Flexibility remains a key consideration, and…

Which Is Better For Your Company: Cloud-Based or On-Premise ERP Deployment?

Which Is Better For Your Company: Cloud-Based or On-Premise ERP Deployment?

Cloud-Based or On-Premise ERP Deployment? You know how enterprise resource management (ERP) can improve processes within your supply chain, and the things to keep in mind when implementing an ERP system. But do you know if cloud-based or on-premise ERP deployment is better for your company or industry? While cloud computing is becoming more and…

Are Cloud Solutions Secure Enough Out-of-the-box?

Are Cloud Solutions Secure Enough Out-of-the-box?

Out-of-the-box Cloud Solutions Although people may argue that data is not safe in the Cloud because using cloud infrastructure requires trusting another party to look after mission critical data, cloud services actually are more secure than legacy systems. In fact, a recent study on the state of cloud security in the enterprise market revealed that…

Cloud Computing – The Game Changer

Cloud Computing – The Game Changer

Global Cloud Index In October, Cisco released its Global Cloud Index (GCI) report for 2014-2019, projecting a near 3-fold growth of global data center traffic, with predictions that this traffic will reach 8.6 zettabytes (cloud data center traffic) and 10.4 zettabytes (total data center traffic) per year in 2019 and 80% of it will come…

Consequences Of Combining Off Premise Cloud Storage and Corporate Data

Consequences Of Combining Off Premise Cloud Storage and Corporate Data

Off Premise Corporate Data Storage Cloud storage is a broad term. It can encompass anything from on premise solutions, to file storage, disaster recovery and off premise options. To narrow the scope, I’ve dedicated the focus of today’s discussion to the more popular cloud storage services—such as Dropbox, Box, OneDrive—which are also known as hosted,…

Cloud Infographic: The Explosive Growth Of The Cloud

Cloud Infographic: The Explosive Growth Of The Cloud

The Explosive Growth Of The Cloud We’ve been covering cloud computing extensively over the past number of years on CloudTweaks and have truly enjoyed watching the adoption and growth of it. Many novices are still trying to wrap their mind around what the cloud it is and what it does, while others such as thought…

SaaS And The Cloud Are Still Going Strong

SaaS And The Cloud Are Still Going Strong

SaaS And The Cloud With the results of Cisco Global Could Index: 2013-2018 and Hosting and Cloud Study 2014, predictions for the future of cloud computing are notable. Forbes reported that spending on infrastructure-related services has increased as public cloud computing uptake spreads, and reflected on Gartner’s Public Cloud Services Forecast. The public cloud service…

6 Tech Predictions To Have A Major Impact In 2016

6 Tech Predictions To Have A Major Impact In 2016

6 Tech Predictions To Have A Major Impact The technology industry moves at a relentless pace, making it both exhilarating and unforgiving. For those at the forefront of innovation it is an incredibly exciting place to be, but what trends are we likely to see coming to the fore in 2016? Below are six predictions…

Low Cost Cloud Computing Gives Rise To Startups

Low Cost Cloud Computing Gives Rise To Startups

Balancing The Playing Field For Startups According to a Goldman Sachs report, cloud infrastructure and platform spending could reach $43 billion by 2018, which is up $16 billion from last year, representing a growth of around 30% from 2013 said the analyst. This phenomenal growth is laying the foundation for a new breed of startup…

Using Private Cloud Architecture For Multi-Tier Applications

Using Private Cloud Architecture For Multi-Tier Applications

Cloud Architecture These days, Multi-Tier Applications are the norm. From SharePoint’s front-end/back-end configuration, to LAMP-based websites using multiple servers to handle different functions, a multitude of apps require public and private-facing components to work in tandem. Placing these apps in entirely public-facing platforms and networks simplifies the process, but at the cost of security vulnerabilities. Locating everything…

Big Data’s Significant Role In Fintech

Big Data’s Significant Role In Fintech

Data Banking Fintech covers a range of financial fields such as retail banking, investments, and lending and thanks to the mobile and internet innovations of late is a thriving sector. Offering improvements which drive customer satisfaction and education in an area previously inscrutable and dictated by gigantic inflexible corporations, fintech is helping put the power…

Battle of the Clouds: Multi-Instance vs. Multi-Tenant

Battle of the Clouds: Multi-Instance vs. Multi-Tenant

Multi-Instance vs. Multi-Tenant The cloud is part of everything we do. It’s always there backing up our data, pictures, and videos. To many, the cloud is considered to be a newer technology. However, cloud services actually got their start in the late 90s when large companies used it as a way to centralize computing, storage,…

Infographic: 9 Things To Know About Business Intelligence (BI) Software

Infographic: 9 Things To Know About Business Intelligence (BI) Software

Business Intelligence (BI) Software  How does your company track its data? It’s a valuable resource—so much so that it’s known as Business Intelligence, or BI. But using it, integrating it into your daily processes, that can be significantly difficult. That’s why there’s software to help. But when it comes to software, there are lots of…

Cukes and the Cloud

Cukes and the Cloud

The Cloud, through bringing vast processing power to bear inexpensively, is enabling artificial intelligence. But, don’t think Skynet and the Terminator. Think cucumbers! Artificial Intelligence (A.I.) conjures up the images of vast cool intellects bent on our destruction or at best ignoring us the way we ignore ants. Reality is a lot different and much…