Cloud Transformation : Smarter Way to Select a Provider

Cloud service provider selection requires a well-developed hybrid IT strategy, an unbiased application portfolio review and the appropriate due diligence in the evaluation of all credible cloud service providers. When discussing this linkage, I leverage the Digital Transformation Layered Triangle as a visualization tool. After agreeing to an appropriate high-level hybrid IT strategy, a digital transformation core tenant, candidate CSPs capabilities must be compared based on their:

• Availability of technology services that align with the business/mission model.
• Availability of data security controls that address legal, regulatory and data sovereignty limitations.
• Compatibility of CSP sales process with enterprise acquisition process.
• Cost forecast alignment with budgetary expectations.

Understanding Cloud Service Agreements(CSA)

Comparing cloud service agreements from the remaining viable service providers is next. These agreements typically have three components:

• Customer Agreement: Describes the overall relationship between the customer and provider. Service management includes the processes and procedures used by the cloud provider. Thus, it’s crucial to provide definitions of the roles, responsibilities and execution of the processes. The customer agreement does this. This document can be called a “master agreement,” “terms of service” or simply “agreement.”
• Acceptable Use Policy (AUP): Defines activities that the provider considers to be improper or outright illegal. There is considerable consistency across cloud providers in these documents. While specific details may vary, the scope and effect of these policies remain the same, and these provisions typically generate the least concerns or resistance.
• Service-Level Agreement (SLA): Describes levels of service by in terms of availability, serviceability or performance. The SLA specifies thresholds and financial penalties associated with violations of these thresholds. Well-designed SLAs can avoid conflict and facilitate the resolution of an issue before it escalates into a dispute.

Designing a CSA Evaluation

The CSA Evaluation must take into account all critical functional and nonfunctional organizational requirements and IT governance policies, to ensure:

• Mutual understanding of roles and responsibilities.
• Compatibility with all enterprise business level policies.
• An identifiable metrics for all critical performance objectives.
• Agreement on a plan for meeting all data security and privacy requirements.
• Identified service management points of contact for each critical technology services.
• Agreement on service failure management process.
• Agreement on disaster recovery plan process.
• An approved hybrid IT governance process.
• Agreement on a CSP exit process.