Success factors for a Cloud Provider

From the business perspective there are two types of cloud providers. First one are in Commodity Market and second one are Specialty. Those are in commodity market generally providing Capacity – Infrastructure. Their selling proposition is that their services are cheap. In this segment you can count Amazon, Rackspace and similar players. These players will survive on the sole criteria of their size and how cheap they can procure and manage their environments and how cheap they can sell to kill any potential competitors in the bud. The second type – Specialty are providing value add to their customers not only in terms of cheap services but also in terms of uniquely differentiated functionality. The prime example in this segment is Salesforce.

If you are cloud based service provider, find out where you are and where you want to be.