Wednesday, 2 January 2013

GP on

My first and hopefully not the last guest post on Maildistiller is out: Cloud Price War Consequences

Special thank you to: Sarah-Louise, Caroline & Danielle

Short break out:
Cash is King

Yes, in a sellout price war world. Cash when it comes to services means long-term agreements. One of the fundamentals in cloud is the ability to move between CSPs, irrelevant of the reason why. Pay upfront, when it comes to IT services, is not cloud friendly: it’s a
lock in.

We all know we don’t move between CSPs each and every day but the higher you go in need of knowledge, or the lower you go in the XaaS chain (BPaaS>SaaS>PaaS>IaaS) the more complicated it gets to move around. As David warns in his post, low prices are not the norm. Most probably there is a paragraph in the agreement/terms and conditions to change the price. Big CSPs have the power to have this in print. So, a raised price and a demanding move is a lock in. Maybe the trickiest lock in: When you feel you should but you “can’t”.

Consequence 1: Lock-in

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