9 top priorities for Cloud Service Providers

Cloud computing has been here for over decades, but with a different name- the Information Technology (IT) services. But the current rate of growth of cloud services is such that it has never been observed in the industry before.

The increasing popularity of cloud service is contributed by advancement in technology, which has helped businesses across the world to improve their flexibility and agility.

The top priorities for cloud service providers are:

  1. Pricing- The driving force behind organizations attraction towards cloud services is the cost reduction it will bring in. It is not just about spending less, but also about more benefits at reduced cost. Cloud services are offered based on different pricing models such as flat rate and pay as you use. In the case of pay as you use model there is difficulty attached with determining the point at which the customer is to be priced. The service providers need to evaluate the service very thoroughly to arrive at a suitable solution.

  2. Building trust with the clients- Since cloud services involve clients providing too many data, the clients will be concerned about sharing data with the service provider due to security concerns. This will prevent the client from outsourcing more work. So the service provider look forward to build strong relationship with the clients based on trust.

  3. Availability and interoperability- Availability of the service provider as and when required by the client is very important for the success of cloud services. More over the interoperability of the different Information Technology systems is very important, as there will be many systems that are being used in an organization. The service provider needs to meet the challenge of interoperability while dealing with clients.

  4. Security- The cloud services involve sharing to customer data and information and such data may be personal in nature. So the service provider has to give utmost importance for the security of the data provided by the clients. They need to invest in developing the security infrastructure so as to attract customers.

  5. Managing risk- As far as customers are concerned, data security and regulatory and legal frame work of the country in which the service providers are based has some risk attached with it. So the service providers need to consider such concerns from the part of the clients. Standards should be developed to reduce any risk associated with cloud computing.

  6. Government- More governments across the globe are adopting cloud services due to the same reason why private businesses adopt cloud services. But service providers need to be careful while dealing with governments as they do not adapt to changes easily and can switch service providers as they wish. Since they associate with many service providers, interoperability has to be given great importance.

  7. Issues with revenue and cost- Cloud services involve complexities with accounting which makes it difficult for revenue recognition and cost calculation. So the service providers need to be careful in making the process of revenue recognition more predictable.

  8. Different tax system- Even though multinational companies serve different markets across the globe, cloud computing has a major role in developing the delivery models in the markets. But each country has a different tax system. It is the responsibility of the cloud service provider to make sure that tax difference is taken care off.

  9. Compliance to regulations and privacy laws- Most of the countries in the west, which forms the house of the cloud service clients, has in place strict regulations and laws in the area of data security. So clients find it difficult to avail cloud services from offshore service providers. This forces them to go after service providers in the home country.




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