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Tiffany Kahnen

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Given that cloud is becoming more popular to aid in scalability of a business, how are you evaluating your complex cloud contracts?

What is the process you are using to evaluate the risks associated with engaging a cloud service to increase scalability? What risks are you willing to take on? I'd also like to see what risks companies are wrestling with....And maybe even determine a few risks, companies are largely under-educated about and overlooking in the evaluation process. (i.e. geographical location of the data)


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    Jan 31 2012: First and foremost you need to complete at least one very comprehensive ITIL-style planning cycle, or leverage your existing Capacity and Performance Management process to establish a realistic forecast. This process should be deeply rooted in the Service Strategy of your business, and a detailed Service Design.

    This process is necessary to accurately estimate the cost of the needed cloud services, and the suitability of the cloud providers service offerings to your needs. Even top-tier cloud providers have limitations around up-time commitments, and specific capability around remediation times, RTO/RPO, etc. These are risks that are not necessarily unreasonable, but must be matched against your true business needs.

    In my experience, there are two main pitfalls to utilizing he cloud. Firstly its underestimating the growth of your business, leading to over-consumption of cloud services and undermining the ROI. Secondly, its overestimating the availability guarantee's and support process of the providers, leading to critical outages.

    To to sum up (and to blatantly steal from Sun Tsu), know yourself, and then use those questions to evaluate your providers. If you have completed both of those processes well, the risks to your business should reveal themselves.

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