There are two sides to the challenge of creating a successful cloud offering and effectively monetizing it. First is to change the largely prevalent negative customer perception of cloud offerings in general spurred on by several high-profile cases of cloud failure in the last few years. These incidents have made a strong impact and swayed public opinion about cloud services. However, it must be clarified to consumers that it is not the issue with cloud in itself rather with the cloud providers. Such cases of failure must be used to reiterate the fact that cloud services can work if you employ the right provider.
The other side of this is the multitude of opportunities that the advent of the cloud ecosystem brought with it by ushering in a new era of easy access to high-end computing power, resource, data storage, virtualisation and software applications. This has further stimulated innovation among the Cloud Service Providers (CSPs). They have enabled innovativeness and reduced cost for their customers. However, their challenge has been to leverage this untrammelled power of the cloud to successfully monetise it via appropriate billing. CSPs have to overcome this hurdle of effective monetisation in order to be able to deliver the ultimate cloud offering.
There also seems to be a lot of disparity between what CSPs promise and what they can actually deliver. A common example of this is the claim to offer 24/7 support which not all can back up. CSPs must have at least one core network that they can proactively monitor round the clock to ensure uninterrupted access to data and apps when they are needed by the customer. This also means reinforcing security measures at data centres. Inability to match or exceed client expectations leads to poor usage and lack of billing details. This presents a further hurdle to the ultimate goal of cloud monetization.
Companies have to be wary of signing attractive looking SLAs that promise 99.999% uptime but are unable to deliver on those terms. This puts the customer in a very awkward and compromising position. There is not much that can be done later to compensate for long outages which can seriously dent the reputation and credibility of the business in the market, not to mention loss of revenue. This is directly linked to CSPs subscription challenges. They cannot provide flat rates or standard billing for a service that requires customisation and flexibility. When a hierarchy-based usage and billing breakdown can be devised, it can facilitate a stronger revenue recognition capability.
There must be effective policy control and enforcement to deliver the right standard of service as per the agreed upon terms in the SLA. There must also be delivery of reliable and scalable billing and a revenue management system that can enable building of long-term client relationships. With the right monetization strategy the value of cloud computing and Cloud Application Development Services could be maximised almost limitlessly. This we called the cloud monetization with effective business solutions by cloud service providers. By combining the elements of quality cloud offering, where the chances of downtime are almost nil, with the right billing plans, cloud providers can design the ultimate cloud package. By meeting the evolving needs of the market and the customer, CSPs will succeed in delivering higher levels of client satisfaction and achieving business success.