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Volume 30, Issue 1

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Wednesday, 14 August 2013 15:59

Five Steps to a Failed IT-as-a-Service Offering

Step 1 – Over commit and under deliver. Large corporations are seeking ways to drive their cost models down in the market place today by using Cloud based services.  Bespoke outsourcing is not a Cloud based delivery model and yet many large Outsourcing companies are billing their services this way to large enterprise.  Committing a custom delivery for thousands of subscribers with thousands of applications will lead to a higher cost model and lower customer satisfaction.  If you are a Service Provider, better to start with a catalog of applications and meet the needs of the SMB first, then move up stream to the larger businesses.  Migration of subscribers from large enterprise into a cloud data center is very time consuming.

Step 2 – If you build it they will come.  Cash is king… it always has been so why develop an environment spending tens of millions of dollars/euros unless you have adequately done the research for who needs what and where.  Looking at IaaS purchases in the last three years should give a clue.  How many of these purchases (buy vs. build) have led to the success in cloud delivery of services?  Again, Service Providers should develop a business model based on the demand for apps, desktops and data in the SMB and stoke your cash flow engine before sinking huge capital costs in data centers?