Pipeline Publishing, Volume 7, Issue 9
This Month's Issue:
The Cloud Beckons
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Cloud Services: What’s an Antonym for Amorphous?
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Complex Billing and Charging

Current charging models may not be flexible enough to drive down the cost for cloud services sufficiently. A quasi-prepaid model whereby a customer subscribes to a set amount of access to a platform seems to be geared more toward a standard outsourcing agreement than driving utilization. In addition, complex services, like bandwidth on demand, require complex service level agreements and a complex charging/rating capability. Instead, look for service providers to adopt more real-time measurement, tracking, and policies for resources consumed to support their business—on usage—as they would for interactive communications services.

And what “new things” will need to be developed to operationalize the cloud?

Maybe we should change the name, cloud, to something more descriptive.



model whereby the cloud provider is not in the traditional business of anticipating customer service needs, and creating bespoke process flows for each cloud service, one on top of another on top of another. This approach would provide for a flexible allocation of resources (as in fulfillment and order processing), and expose wholesale components (for the cloud provider as well as third parties) to retailers most likely through service catalogs and a provisioning controller functional layer. This will then provide the flexibility to support the complex interactions between the numerous players seeking to efficiently and effectively add value through readily-adopted cloud-based offerings.


We know we will need greater flexibility. A similar foray a decade ago into on-demand software as Application Service Providers (or ASP) did not take off initially because of the rigidity of the environment. We cannot afford this lack of flexibility in a cloud services environment.

For the cloud, we believe a “Service Factory” approach to creating, fulfilling and delivering new services must be fool proof and efficient to ensure the service delivers and drives mass adoption that will make it profitable. A service factory approach exposes assets and service components to the supply chain and promotes collaboration. This enables not only third party sales, but a wholesale-retail


Behind the so-called hype, cloud services combine traditional hosted services with easy access and connectivity that, in turn, presents IT consumers with a different set of options to meet their business objectives. Giving cloud customers the insight they need to make that decision requires chiseling away some of the haze on availability, security, and billing. What else do we need to invent to support the mass adoption of cloud services? Maybe we should change the name, cloud, to something more descriptive and less passive-sounding, or maybe ask our friends at Microsoft to give us some really sharp looking Clip Art for our clouds to use in our sales presentations.

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