Creating A Resilient Cloud Market @ Cloudscape2016
John Woodley, co-founder, Strategic Blue, presented the key outputs of CloudWATCH2’s cloud pricing roadmap at Cloudscape 2016 this week focussing on how a more transparent and trusted cloud market will lead to greater cloud uptake.
A stable and transparent cloud market is essential if uptake of cloud services is to blossom. End consumers, potentially hundreds of millions of Europeans that access services over the Internet, indirectly benefit from a stable and resilient market. Governments backing ‘cloud first’ policies are more likely to fund projects that can procure cloud resources easily, on pricing that is transparently competitive. Finally, cloud vendors benefit from increased uptake of their services due to increased trust in the market as a result of transparency and resilience.
There are two main market characteristics that are key to help create a trusted cloud market: Economics and Completeness.
Creating trust is key to achieving market completeness. Businesses and governments are often reluctant to hand over their data to cloud service providers due to security fears. Similarly, a lachk transparency from providers mean that users are unable to satisfactory contract terms and conditions that really address the risks faced.
Fairness is also key. Currently, the cloud market is asymmetrical with the majority of power in the hands of cloud service providers. Creating greater equality in negotiating terms between users and providers is a an important driver towards fairness. Users have to believe that they will actually get what they want and that there is enforceability behind this with stable rules and regulations key. There is nothing markets like less than corruption and instability.
A complete market can bring transparent pricing which can be easily compared by users and vendors alike. Being able to compare different offers is also key. Am I getting my money’s worth? Does the performance match the price and can I pay more for better performance? All these factors are established in other more stable markets and need to be too in the cloud market.
So the conclusion - well it's as easy as ABC
- Address market asymmetry
- Build a complete market
- Create price transparency
A + B + C = Uptake
For more, download the CloudWATCH2 position paper from Cloudscape 2016 - Creating A Resilient Cloud Market