What Larger Enterprises will Demand from Cloud Providers

We could be undergoing a bit of a transformation in the world of cloud computing. This will happen around the new demands of larger enterprises as they move slowly onto cloud-based platforms.  Larger enterprises are simply just higher maintenance.

Most small businesses have almost no leverage at their level of spending to make demands on the major public cloud computing providers.  Larger enterprises that can toss around a bunch of cash will certainly have more buying power.  Gone will be the days when cloud computing providers did not speak with humans and put forth take-it-or-leave-it contracts.  We’re quickly moving to a point in time where cloud providers will have to show up to speak with enterprise IT in person and even negotiate contract terms.

While some providers will find this new interaction a foreign and unproductive notion, some cloud providers will embrace it as a way to find new revenue, and perhaps differentiate themselves from the other public cloud providers.  Any cloud computing provider that deals with big enterprises will be forced to adapt, or pass on that end of the market.  I don’t see them passing.

If this sounds a lot like traditional enterprise software sales, you’re right.  However, I don’t see any way around it unless larger enterprises somehow decide to behave differently than they have for the past few decades.  I suspect that won’t happen.

Relevant Analyst

David S. Linthicum

SVP Cloud Technology Partners

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  1. There is a dynamic that plays out with intermediaries, though. Enterprises like to deal directly with vendors, but many also deal with partners or integrators first, who in turn act as resellers for the vendors.

    Cloud brokers or similar intermediaries might provide the same function between the major IaaS providers and enterprise clients. For example, localising for currency, response times, penalty clauses and so on.

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