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Tools for the cloud

The five cloud survival tools every service provider should know.

By JJ Milner, MD of Global Micro.
Johannesburg, 05 Oct 2011

The cloud can be a dangerous place for service providers: anyone can talk to a client at any time and from anywhere in the world; broader access to the Internet globally means that clients are able to go direct, cutting out the middle man; and specifically where opex-only models are concerned, they are not bound anymore by legacy commitments, and are relatively free to switch between providers as and when they please.

The traditional cloud service provider (believe it or not, there is such a thing as a traditional cloud service provider) needs to evolve into so much more, and there are five key tools the evolved provider will have in his toolkit.

Tool one: the customer

Those that drop the ball lose the customers

JJ Milner is MD of Global Micro

Too often, service providers leave forecasting in very precarious hands - the market, thought leaders, trend forecast documentation, and even friends and family - instead of going directly to the customer.

Service providers must ensure they control the conversation at all times. Know who the customer is, remember they're paying the company, and perform customer development and management activities with that exact potential or existing customer, or useful results will not be the outcome.

Underlying rule: be the first person that talks to and advises the company's customers.

Tool two: the value chain

Following the customer conversation, service providers must ensure they offer products that are targeted to each customer. This is easier to do in the cloud than anywhere else, and the time needed to investigate customised options that will ultimately lead to long-term client retention is minimal. With pay-as-you-go options, opex versus capex considerations and the sheer number of solutions available in the cloud today, the ideal solution for any given enterprise set-up is easily achieved.

Another notch in the value chain that needs serious reconsideration is the old service level agreement. 24x7x365 is the way forward for cloud players that want to remain relevant.

Underlying rule: be as innovative, flexible and scalable as the cloud itself.

Tool three: the Web site

Learn how to use search engine optimisation and never underestimate the value that lies in the company's Web site. People aren't using phonebooks for anything except killing large spiders these days, and as cloud becomes a more prevalent business consideration, they're more than likely visiting search engine site like Google and Bing, and are typing the words “cloud service provider” into the search box on a daily basis.

The company site needs to be online, it needs to include information that is relevant to its potential customer, and it needs to be optimised for these very search engines so the company name comes up more often, on a more relevant basis, and more frequently than its competitors.

Underlying rule: if the company doesn't have a Web site, get one, and then use it to sell the business.

Tool four: the managed service practice

It's no longer enough to box-drop anything, even services. There are other providers out there working longer hours and wiping away more sweat to keep their customers, and service providers need to be vigilant around the relevancy of their offerings in the market.

In fact, they need to start seeing themselves as a managed services practice - one that offers remote support and vendor and asset management capabilities, and one that supports recurring billing requirements effectively.

Underlying rule: become the IT department to the IT department.

Tool five: partner with a tier one hoster

Tier one providers are at the top of the Internet connectivity food chain in that they have direct access to the largest Internet connections - an absolute imperative when operating in the cloud. Reliability of service and consistent access to solutions is a non-negotiable in today's cloud market, and those that drop the ball lose the customers.

A tier one hosting partner is also better able to manage the financial risk and invest in the scale on the service provider's behalf, resulting in less outlay and worry on the part of both the service provider and his customer.

Underlying rule: partners in the cloud are important to the success of the business.

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