June 11

What is cloud commoditization and does it affect cloud migration?


Commoditization (when goods or services lose unique characteristics and become indistinguishable from its competitors) is an ongoing trend in cloud computing. However, while we see the positives of cloud commoditization, we strongly feel that the actual cloud migration process will not change. In this blog, we dive into why the cloud is being commoditized, and its effect (if any) on the migration process.

How does cloud commoditization occur?

Cloud commoditization is an ongoing trend, taking place due to the standardisation of quality and changes to pricing structure.

Cloud platforms differ on several features like security, application architecture, integration, IT service management and target market. When considering all these factors, some cloud platforms become more suitable for some businesses over others. For example, Genesys focuses specifically on the needs of contact centres. However, the proliferation of cloud computing technology has made it easier for cloud providers across the board to provide similar features, regardless of the provider’s capabilities.

Standardising quality and pricing structure

Quality standards often come down to measurable parameters, which includes two different categories: Hard parameters and soft parameters. Hard parameters consist of availability, response times and utilization. Meanwhile, soft parameters consist of ease of use, problem handling and user helpdesks. Usually, the parameters are dictated by the SLA defined by both the client and service providers. There is no set standard for what the service should be.

The standardisation of quality is a positive development for contact centres and consumers because they are not bogged down by differences in quality and features that could make cloud migration much easier.

Cloud migration becomes commoditized when pricing structures change. Under conventional terms, the pricing structure follows the ‘post pricing’ system, where services are billed on an annual or monthly fee. Prices differ based on quality, but also the region. For example, QoS is 80% more expensive in Japan, compared to the US. However, Amazon proposed a new pricing structure that could change cloud services, as we know it.

Under this new model, customers can state the maximum price they are willing to pay per hour and that price increases and decreases, based on how the infrastructure is used. It is a more flexible pricing system because organisations only pay when they use the service, as opposed to paying a fixed price every month.

With this new pricing structure, it is only a matter of time before organisations see that the true value lies in tying price more closely to the actual cloud resources used. It is a positive development for the consumer, though we feel that price should not be determined by use alone, especially where cloud migration is concerned because an excellent cloud provider can make the migration process easier.

Migrating to the cloud – Does it change with commoditization?

Cloud migration might be commoditized, but we feel that it does little to alter the actual migration process. The standardisation of quality and changes in pricing structure can make some parts of the process easier, for example, contract negotiations. However, it does little to alter the technical process. Contact centres still need to follow the right procedures and adopt the right metrics, if they want to avoid common migration issues that affect other contact centres.

Measuring the baseline network performance of the cloud is an essential step before moving into the cloud. The best way to measure the baseline performance is by utilising synthetic and end-user monitoring. Synthetic transaction monitoring and end-user experience monitoring can provide the quality metrics contact centres require to measure the baseline performance. The monitoring techniques are used to identify performance issues in the cloud and test new features. Hence, making both monitoring methods perfect for finding the metrics that will help you measure the baseline performance of the cloud.

The cloud migration process is greatly improved when you can monitor the flow of traffic in the cloud network, before actually moving in. To accomplish this, you need to conduct several tests like synthetic testing, ping testing, traceroute functionality and Border Gateway Protocol routing. BGP is an effective litmus test because it exchanges router information between networks. By mapping out the traffic flow in advance, you can measure latency, loss and jitter.

Cloud migration is not an easy process and cannot be done properly without third-party assistance. This is where we come in, Blackchair specialises in overseeing cloud migration to an omnichannel solution. We aim to increase the efficiency of migrating to a new platform, identify new opportunities of automation while anticipating trouble spots and taking steps to avoid it.

Cloud commoditization is an ongoing trend that sees quality across the board even out and pricing structures become more precise. However, we feel that it will have little effect on the actual cloud migration process.


Cloud Commoditization, Cloud Migration

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