MANAGED SERVICES cloud
means of differentiation, but all should be focused on what the client business needs are and, while each may have a different approach, the client needs should be driving them all to fairly similar end points. At IBM we work with Business Partners of all types – including distributors, system integrators, MSPs, CSPs, ISVs and many more. Some use our hardware and software to build their own infrastructure, while others focus on providing value elsewhere in the stack and build their solutions on our SoftLayer Cloud services instead. We are also helping ISVs and MSPs to partner to deliver collaborative offerings. There are many different approaches here, depending on how and where each player adds value.
In other words, is any one group out of, say, the telcos, the storage vendors, the network vendors, the software vendors, the ICT tier 1s, hosting companies, the dedicated MSPs, Systems Integrators, best placed to deliver Cloud/services?
Each group caters for a different need and will offer a different value add. From an IBM perspective we see 7 unique types of Managed Services Providers, each with a different background and scope. Each one provides value in a different way and we do not see any single group prevailing or dominating what will be a large and fragmented market.
How does an end user go about deciding how to engage with the Cloud/Managed services?
The most important question is to focus on what a company wants to achieve. What are the overriding business goals and how does technology support or drive that. With a broad cloud computing portfolio and deep cloud expertise, IBM helps clients realize the benefits of cloud.
For its larger enterprise clients IBM offers professional services including expert cloud strategy design, consulting, migration and implementation to help our clients best determine which model or route to take. It is the tailored approach rather than a preconceived idea or offering that makes companies trust the IBM Cloud for their business.
While for Midsize businesses, IBM is working with ISVs, MSPs and others to enable its ecosystem of Business Partners to collaborate to provide a similar service, tailored to the needs of each client. We believe local trusted solution providers will continue to be the key to success in meeting the needs of Small & Medium Business. Collectively with this ecosystem IBM provides the broadest portfolio of Cloud offerings with IBM Cloud supporting 270,000 more Web sites than Amazon including 24 of the top 25 Fortune 500 companies
Specifically, what are the type of questions that end users need to ask their potential Cloud/Service providers?
Firstly most companies that are considering the use of cloud computing services are looking at the wrong metrics when making their decision. They need to look beyond IT issues to considering the full impact on the company as a whole. It would be wise for decision- makers to consider what no longer needs to be done and the costs of those things when working with a cloud computing environment.
We would suggest that cloud computing means that companies can shift to thinking more about what they need to accomplish rather than being locked into thinking about how something needs to be accomplished. The cloud services provider addresses the how leaving companies free to focus on the what. In the end, companies could
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focus more on productivity and what they need to do to prosper in this rapidly changing market. Lifting the burden of IT from decision- makers’ thinking could result in a great deal of innovation.
Secondly when it comes to discussing how the cloud services provider addresses the IT challenges, you need to be clear on the contractual arrangements. I would suggest that you:
£ Avoid providers that offer cloud “as is” – it suggests that it is new, untried and untested or is associated with highly standardized, low cost & low margin services – a case of “buyer beware” (see also reliability below).
£ Avoid potential lock in - Buying cloud services as you need them can offer a level of flexibility, scalability and cost control cloud that is great for customers – but providers seeking reliable, repeating revenue can try to lock the customer into a longer term relationship. Most customers recognize that, where the provider is spending money to build them a private cloud by investing in new hardware, then some form of minimum term is necessary, with a payment in the event of early termination payment to recognize this. However assistance will then be needed to migrate to a new provider and this needs to be agreed up front. IBM Labs has developed new cloud storage software that provides a simple interface for clients to securely migrate data across multiple clouds, while keeping it confidential and secure in order to protect clients from this kind of lock in.
£ Avoid unreliable providers - Often one of the sales messages of cloud is that is cheaper than on premise. This can be true, but it is not necessarily always the case. However, whichever way you measure the cost of the service, it is probably significantly lower than the losses that a customer would incur if their cloud service did not work. Going for a cheaper and potentially less reliable provider is therefore very much a false economy.
These are just a few of the many considerations involved. The new draft EU Data Protection Regulation will impose new obligations on cloud providers and it will be interesting to see how this impacts the market here in Europe.
For example, there’s much talk surrounding Cloud security and compliance. Are end users right to be so concerned, or is the topic something of a red herring?
Concerns about control and security have made a lot of companies either delay Cloud deployments or consider opting for private cloud deployments only. Those with such concerns should speak to IBM or one of its partners about the enhanced security solutions now available – indeed these days the latest Cloud deployments are often more secure than the majority of on-premise deployments.
SLAs seem to be fairly critical when it comes to signing up with a Cloud/Services provider. Do you think end users understand what they are signing up to, or is it only when things go wrong that they find out…too late?!
There are many considerations, including those mentioned earlier, but overall the contract needs to ensure that the service supports the client needs. There are frameworks that we provide and specialist advisors that can help with this and it will be interesting to see how the new EU Data Protection Regulation and other regulations impact things here in Europe.
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