Bruce von Maltitz, 1Stream

In this economy, it’s not hard to sell the benefi ts of the cloud.

However, some companies who have attempted to implement a cloud-based service have been sorely disillusioned, as hidden consultation fees drive up costs instead of reducing them, or the “easy-to-use” system proves more complex than previously expected. The problem doesn’t lie with cloud services as a business tool – but rather with the solution that’s being sold.

The reality is that a simple, off-the-shelf cloud solution (as marketed by a number of service providers) will not work.

Cloud services can be accessed at a bargain price, but if services are not included in the contract, clients will find themselves paying exorbitant fees whenever a problem arises – such as integration with existing technology or issues with quality or reporting.

The few companies which were “born and raised” in the cloud understand that managers should be walked through choosing and understanding a few services and reporting systems that will work best for the business. Contracts without a service element, on the other hand, can leave managers overwhelmed and at the mercy of abuse. Most contractors provide administrator and end-user training, but with the high churn in the industry, this is often money in the water, so the provider can still earn high recurring revenue.

Needless to say, as cloud technology becomes more prevalent, companies will start to look for service providers that are able to offer a well rounded perspective – providers that are engaged with the industry and able to easily resolve or broker a solution to problems their customers may encounter.

The days of the fl y-by-night providers, which drop minimal on-site equipment along with minimal instruction at their clients’ doors and then retreat, are numbered. The providers that will remain competitive after the initial rush to the cloud has dissipated will be the ones who can offer the true service capabilities that come from being born and raised in the cloud, as opposed to merely milking it.

About the author: Bruce von Maltitz is director of 1Stream.