Spare cloud capacity creates opportunities for CIOs

Grazed from ComputerWorld. Author: Editorial Staff.

Cloud computing is becoming a mainstream technology. However, cloud providers are beginning to see price pressure to reduce their costs to remain competitive. CIOs need to be aware that with downward price pressures, the excess capacity that cloud providers have available for peak traffic drives cloud provider’s profits down, which may alter the relationship and service the CIO receives.

A behemoth cloud provider like Amazon can afford to have excess capacity, while for smaller providers, it’s a challenge that must be solved in order to compete and survive. Larger cloud providers have already started to differentiate themselves through new and alternative services. It’s how they compete with Amazon and also how they entice CIOs at large enterprises to commit to cloud adoption…

As larger enterprises sign up for cloud services, their CIO’s expect detailed SLAs, security, disaster recovery capabilities and management tools as part of the offering. This focus on services beyond basic capacity is starting to drive up costs, just as customisation has done for enterprise software…

Read more from the source @ http://www.computerworlduk.com/business-it-hub/management-briefing/3400043/spare-cloud-capacity-creates-opportunities-for-cios/