Does Competing successfully as a Cloud Service Provider (CSP) involve being low Cost and High Margin

This is an impossible conundrum for most businesses, to be low cost and high margin at the same time. It puts pressure on investment and efficiencies that are arguably competing against each other, yet this is the situation that we are seeing in cloud service providers everywhere.

The global marketing of cloud computing ecosystems is a huge ubiquitous world containing a wide range of different ISP, NSPs, DCs and Device centric markets and standards.

Driving low cost Cloud hosting services business models on the one had means pushing maximize efficiencies in Data Centers , networking and service channels. The behemoths in the global market , Amazon, google, Facebook and Microsoft are , IBM , HP , Oracle are following suite in transitioning to this new world of ultra high capacity global data center networks. Investment of this super scale can range from anything up to half a billion dollars or more in a data center alone. This creates a powerful market dominance and the ability to single, double or triple amortize this investment as ISVs and other users host their products and services on top of these hosting environments and then added-value services added further on top of that all meaning that it rapidly becomes the driver of the new cyber marketplace ecosystems of the new decade and beyond.

There are other ecosystems that are emerging that work inside these clouds and telecoms network highways utilizing the IaaS Infrastructure background. DevOps and Applications as a service, SaaS and different Data as a service workloads including Big data , simulation and mass Content distribution networks CDNs that represent a massive added value network on top of these data center and infrastructure services. These are the new integrators , aggregators and orchestrators of this world that seek to bridge between the business and technology usage and innovation. So the cycle of new and old continues on as legacy and new capabilities that CEOs and users alike are seeking to get access and maximize advantage.

Going forward the trick may be to create not just unified network convergence (UCC) which is just a first step enabler , but a whole multi-channel convergence that drags and pushed client side and server side services to and from end point devices. After all this is what the end user is already used and expecting everyday as they jump from search engine to online apps store to multiple on line services.

#CloudComputing #Orchestration