If you are somewhere on this journey to the cloud, and you want to build profitable cloud services that your customers will love, we’ve created a useful resource for you. Our Journey to the Cloud tool will ask you six straightforward questions and based on your responses create a bespoke content package to help you at whatever stage you are at.
A large proportion of the service provider market has not yet developed a true cloud offering. In fact, 83% of end user companies are frustrated with having to cut through marketing hype to find out which solutions are genuine cloud offerings and which are merely conventional hosting services with the word ‘cloud’ added to the title.
Some remain at the virtualized level with virtual private servers (VPS) masquerading as cloud services. These service providers are not in a position to benefit internally from the efficiency savings of a cloud platform or to deliver the value of true cloud services to their customers. Part of this problem is that many do not realize or recognize the difference between VPS and cloud and therefore do not understand the benefits or use cases possible with IaaS.
IaaS addresses all of the mentioned use cases where the ability to scale to meet customer demands with agility and flexibility is essential. Moving to an IaaS type model is a key technical, commercial and cultural step, but it isn’t about selling services on a pay as you go (PAYG) basis. It is actually about moving to a mindset of delivering flexibility to customers to help them solve genuine business problems that offers distinct value, rather than just becoming a sunken IT cost. This approach opens possibilities of delivering additional value added services to those customers and continuing to move up the value chain.
And this is just a start. Delivering IaaS is the enablement engine to deliver IT as a service. Users today want a whole range of IT delivered as a service not just infrastructure. You don’t necessarily require IaaS to deliver a range of services, but you do absolutely require a single solution through which users can purchase and consume these services, be it IaaS, PaaS, SaaS or otherwise. The potential value created for service providers by companies moving to the cloud is significant, but actually the majority of that value is offered beyond the IaaS layer. IaaS, though, is used as a key part of the value added services.
Attempting to deliver these kind of services today using traditional infrastructure is simply not possible due to the flexibility and agility that is required. Not all customers today are looking for service providers to provide a full range of services, but there is a distinct growing trend in that direction as everyone looks to the public cloud to deliver what used to be traditional internal IT. As the industry changes, you should be ready to meet these new requirements with value added services relevant to your existing customer base.
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