Cloud Economics, Specialized Offerings and Objection Management

Many leading technology firms reported stellar Q1 2021 revenue results with equally bright forecasts for Q2- all in anticipation of cloud adoption. Initially driven by pandemic-induced lifestyle trends such as work-from-home, home schooling and online conferences, this strong momentum continued thanks to consumption-based billing models and subtle push towards ‘OpEx’ (operating expense) over ‘CapEx’ (capital expense) model.

Currently most cloud providers (IaaS, PaaS or SaaS) are focused on capturing greater market share. So much so, that Alphabet is still registering operating loss as it expects it’s investment in Google Cloud to pay off over time. Besides mindset shift (why migrate certain functions from private cloud to a public cloud, when it’s not broken), one of the biggest impediments to cloud adoption has been due to perceived technology integration costs, security and absence of a precise pay-per-use financial model. In recent months, almost all BigTech have dedicated a few roles, if not departments to outlining cost-economics for enterprise cloud.

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