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The Virtual Private Cloud is typically a Hybrid Cloud deployment model and could incorporate any of the three service models. It enables complex, multi-site/cloud deployments with value-added services such as MPLS and MNS, and combines cloud services with an enterprise infrastructure.
The many advantages of VPC offerings make them increasingly popular, yet they are the most challenging and complicated in terms of design, sales and fulfillment processes. For example, how will service providers design these complex deployments when demand is high but available expertise is limited? How will accuracy of the solution design be assured in the face of statistics that show as many as 40 percent of MPLS proposals cannot be provisioned as sold? How will providers overcome a lengthy time-to-market when competitors are gaining market share?
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Service providers enjoy a host of advantages in developing and deploying cloud service offerings. |
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Among the many factors that are motivating service providers to offer VPC services include the following:
- Customers – Service providers already have established relationships with their customers, and VPC offerings provide an opportunity to extend their relationships by potentially lowering costs while providing a higher quality of services via shifting services to the cloud; additionally, there are increased opportunities to win new business.
- Network – The network is already in place, so providers now merely need to capitalize on their existing infrastructures and provide additional services that utilize that same infrastructure.
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Most importantly, how will the VPC solution lifecycle be managed to overcome these obstacles? There is often a lack of quick and precise communication between the sales and operations teams, and personnel are often unsure about how and when to optimally intervene in the lifecycle. As a result, using automation for end-to-end solution management is a critical success factor.
Factors Driving VPC Offerings and How to Facilitate Deployment
Service providers enjoy a host of advantages in developing and deploying VPC and other cloud service offerings. By their nature, VPC solutions establish long-term relationships between the service provider and customers. Additionally, VPC solutions often require multiple phases of implementation. But while the service provider’s CRM system can effectively handle complex and long-term business relationships, CRM systems do not have the automated knowledge base of design rules to support solution lifecycle management.
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- Operational Excellence – Service providers are known for their operational excellence, so issues of performance, security and the effective bundling of services are already well known by decision-makers who participate in the sales cycle.
- Credibility – Because service providers already have established credibility with their customers with regard to implementing complex, multi-tiered solutions such as MPLS and managed services, customers feel more secure in extending their relationships with the purchase of new services.
As a result, the cloud is a natural next step for services providers to gain new business through effective implementations that not only extend service offerings but also increase current customer satisfaction and strengthen business relationships. However, effective and efficient provisioning and deployment is another question altogether.
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