Lock deals: Integrated analytics for product and cloud computing

Source: Internet
Author: User
Keywords Suppliers selection cost

When it is time to make a purchase decision, it is always the first task that needs to be done to match the expected usage requirements and product functionality. In building and integrating the cloud computing infrastructure to implement cloud computing services, we will consider trading with cloud computing providers. Consider these factors before finalizing the purchase, weighing product features, costs, cloud computing integration costs (including adding new products to existing infrastructure, balancing product flexibility), and more hidden factors.

The most important issue in choosing the basic component of cloud computing infrastructure is whether the proposed product is suitable for the environment within the cloud computing services platform that the vendor is building. The suitability of the intended use is always the first important procurement standard, and the purchaser always takes the cost as the second most important procurement standard. Cloud computing infrastructure procurement is always complicated because it is difficult to understand what a cost relationship is. Because of this, cloud computing services providers face three major challenges.

Challenge 1: Compare product features to weigh cost factors

One of the first challenges in choosing a cloud vendor is a lack of consistency within the range of comparable functionality. It's easy to compare two products that do the same thing, but for cloud computing, it's more difficult to compare a combination of products in a variety of ways. Because the cost factor to select Product X for a particular feature may mean completing the functional description, you need to use product C instead of product d, and C may be more expensive. To get a real cost budget, you might want to create a proprietary method for comparing products and compare the overall price.

Challenge 2: Pricing for integrated costs

The second challenge for choosing a cloud vendor is to price the actual integration cost. A few vendors can provide a stand-alone cloud computing product, but most other vendors offer component products that need to be integrated with other components to achieve full functionality. Companies have been advocating that the cost of integration is the most likely to overspend. One reason is that it is difficult for cloud operators and vendors to understand exactly how each component is integrated. This means that the "glue" that creates a unified cloud computing infrastructure may be clearly drifting away from the plan.

Challenge 3: Balancing Service cost control and tactical agility

In terms of services that cloud computing providers can offer, a product with a narrow range of services may be difficult to sell, resulting in a frustration in the sales force and a success in limiting the customer's reference to building a service reputation. It could also delay profit times, causing damage to early financial milestones. On the other hand, flexible cost funds and a wide range of services will increase the cost of cloud computing providers, and even reduce marketing capabilities as sales organizations expand. As a result, it is important to focus on the speed at which early cloud computing products can be extended to a wider range of services, which is almost certainly the function of cloud computing component flexibility and component integration simplicity.

In order to limit their service risk to an acceptable level, most vendors decide to adopt a phased approach, from laboratory testing to on-site commissioning, to targeted service delivery until the final full service product. Laboratory tests are designed to validate key technology/integration assumptions and to ensure that the functionality of the cloud infrastructure matches the business objectives. The on-site trial run is designed to test operational practices and efficiencies, while targeted delivery services allow vendors to adjust their sales and marketing, deployment, and customer support capabilities, as well as to anticipate revenue cycles.

The biggest problem with deploying cloud computing services for vendors is how to balance building experience requirements against the contradictions between different vendors and the requirements of components and replacement components (if the components don't work correctly). Achieving the right balance depends on whether you can adequately expose subsequent potential problems (including running, deployment, and support) at the early stages of your trial run. Each phase must test the suitability of the selection for the next phase of selection or determine whether there are significant issues and significant delays.

All of these issues must be taken into account before selecting a set of components/vendors, which means you must consider the following factors in the final negotiation with the manufacturer. In order to be fully prepared, the range of candidates should be narrowed to two to three in advance. Then, our goal is to select a combination of best overall performance.

The last factor to consider

Here are a few points to consider in the final selection phase:

• Understand what each vendor is suitable for in the context of the required cloud infrastructure component. In general, competitive firms with a wider range offer lower prices than those with a narrower range of vendors. At a minimum, the degree of integration difficulty is higher than the latter.

• Don't always assume that higher flexibility or a wider range of services is a legitimate reason to require higher costs. Evaluate the actual value of both benefits, and then make a selection comparison from a cost perspective.

• Start the product selection and build on it from the infrastructure components, which are the basics of the cloud computing Services program. Otherwise, you will discard some candidates before you implement the critical requirements area.

• Generally, providers of integrated services are our first choice, but only if they integrate your full range of elements and form the results.

• If you plan to develop a higher level of cloud computing services, make sure you understand how each candidate vendor integrates platforms, software components, and their infrastructure, and that's what you'll do.

• Choose as few suppliers as possible to maximize impact; Each supplier has a higher share of the project. Typically, this will reduce your integration costs and project implementation difficulties.

• Make sure that you write a complete project planning schedule, from lab testing to full deployment, and each phase should include requirements and the degree of vendor involvement to ensure that the project is fully under your control. If you change your mind, you will not suffer a great loss.

• Find suppliers who should be able to deliver their components in the form of a public cloud services integration component, which allows you to try out their solutions with minimal cost.

• Ensure that you have a dialogue with each candidate vendor to ensure that they understand your business plan and technical strategy. You need to understand how well they understand your methods and needs. Each supplier will be a part of the whole, only such a whole can make you successful.

• Do not try to avoid risk by overly detailed milestones and draconian penalties, as this may make you commit a mistake that exceeds your current target market and initial service decision. Finally, learn about your own business case for your service buyer and ensure that your suppliers understand and accept their position and role in order to serve them.

The early market for cloud computing services focused on the opportunity for vendors to host IT applications and infrastructure (traditionally hosted by dedicated IT departments). Even now, only less than 2% of cloud computing opportunities will be implemented, and cloud providers are looking for spending beyond existing IT applications, deploying new customers and business applications that require redefining computers, networks, and relationships between people. This may be the most remarkable development of the next decade and the most significant opportunity for suppliers. Therefore, the flexibility to take advantage of opportunities in the cloud computing world becomes the most important thing to look for in your own cloud computing infrastructure.

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