Monetizing in a multi-cloud world

19

Jun, 18

Monetizing in a multi-cloud world

what-is-multi-cloud

What is multi-cloud? Multi-cloud is a deployment model that involves using multiple cloud services from multiple public cloud hosting providers, often in combination with on-premises physical, virtual, and private cloud infrastructure. By (end of) 2018, 70% of CIOs in Singapore will have experiential engagement, data monetization, or digital business at scale at the top of their agenda. 75% of organisations in Singapore will be digitally transformed by 2027. Research done by the IDC Cloud Services has shown that cloud enabling can increase cost efficiency and productivity, generate new revenue and expand into new markets.

Single cloud users are more likely to encounter problems such as service availability failure and the possibility of malicious insiders inside the cloud. Furthermore, there will be a loss of flexibility. Companies could be held hostage if there is a change in contract terms or a considerate price hike. Single cloud computing vendor may also often not support new technology. What’s more, a single vendor may rarely do all the task well, which mean that companies would be stuck with some poor offerings Here’s why we should consider multi cloud.

Benefits of A Multi-Cloud Strategy
1. Controllability
– Vendor lock-in is one of the leading fears for enterprises researching a cloud service provider. Using a multi-cloud infrastructure allows organisation to hold the power to mix between platforms and avoid workloads being locked in to a single cloud provider. This allows business to have more control to change the platform they are using, dependent on the business needs.

2. Cost Optimization
– Maintenance cost are reduced and application support costs less as SaaS vendor handles the platform maintenance, update and licensing.

3. Tailored to Organisation
– A multi-cloud strategy gives companies more choices when they are matching specific apps and workloads among a mix of cloud providers. It allows organisation to meet specific workload or application requirements – both technically and commercially – by consuming cloud services from several cloud providers. Not every department, team, business function, or application or workload will have similar requirements in terms of performance, privacy, security or geographic reach for their cloud. Being able to use multiple cloud providers that meet their various application and data needs is critical as cloud computing has become more mature and mainstream.

4. Reduces Single Point of Failure (SPOFs)
– Reliance on one cloud can be disastrous because if there is an issue, your whole enterprise can be affected. Multiple clouds allow your business to eliminate SPOFs since you will not be relying on just one.

How do we Monetize in a Multi-Cloud World?
1. Providing a Secure Service
– Many customers worry how their data will be stored and how secure will it be as they are vulnerable to breach. Cloud providers should integrate more security tools into the offering so that customers remain safe. Having increased security will allow users to be confident in the cloud and they will be more likely to move to the cloud. Furthermore, service providers can also provide the option to offer premium security or even security as a service to increase the revenue.

2. Data Handling
– Cloud services must continuously collect, analyse and distribute data. Businesses can use the data to deliver new products, reduce costs and improve quality. Improving quality has been shown by many service providers to contribute to 3 objectives. Understanding performance problems and failures leads to improved processes, more reliable systems and fewer errors – all of which results in operational efficiencies, better products and lower costs. Business insights are paramount for companies as they help them make smart and appropriate decisions. These cloud services will allow information to be quickly accessible and users will be able to gain quick and accurate information on how things are going and how they will turn, without having to ask for reports or updates from multiple sources.

3. Incorporating All Services and Support at One Place
– For the end customer, getting everything under one roof without having to run door to door to purchase various services will save time. 80% Singapore organisations purchase or are planning to purchase their cloud services via an online marketplace. Cloud business platform will provide customers with a user-friendly customer experience as they are able to get everything from a single place – their own control panel to place orders, manage services, view billing history, get support, etc. For example, Microsoft Azure is a secure cloud service platform, offering compute power, database storage, content delivery and other functionality to help businesses grow. They offer various type of services as different workload characteristics will drive different cloud demand.

By offering multi-cloud, one can ensure quick revenue generation. There are challenges in selling clouds of big brands such as Microsoft. For example, multi-cloud adds complexity in management. Managing multiple services from multiple cloud providers is not an easy task and if left unmanaged, it could impact the agility and add cost. In addition, there is also a complex structure. Every cloud service has different technologies, different interfaces, different services and different terminology. There is currently no standardization of terminology or methodologies across cloud vendors. However, with proper expertise and knowledge, multi cloud can flourish the present state in business. Furthermore, multi-cloud delivers a rich mix of benefits that the trend for enterprises to adopt the model is unstoppable.

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