Colocation and service level agreements. What are they and why do you need them? In this article, we’ll review what colocation is, how its services are useful to businesses, and then why service level agreements are so important.
Cloud computing and infrastructure is a rapidly developing sector in the tech industry. The production side of this market has a variety of businesses providing this service to both local and international clients and companies.
The obvious key players include Amazon, IBM, Microsoft, and Google, all who have a significant share of the market. However, despite the massive hitters, there are others like the smaller niche providers, that can be taken into consideration as well.
Small cloud providers are an anomaly. Their purpose is aimed at providing services to smaller businesses that range up to mid-market sized companies that do not need to go mainstream. Aside from their market segment, a majority of them have also carved out niche specific industries like real estate, healthcare, or manufacturing. This go-to-market strategy gives them the shoe in they need so that they can penetrate their markets strategically. However, due to bidding wars between industry giants, the most common set back for smaller firms, like many businesses, is brand awareness and gaining customers. The bidding war between the larger firms is a classic example of Economics. But, the niche specific markets have proven to help smaller firms effectively gain traction within the cloud space market.
To give you an idea, here’s how smaller cloud providers score BIG points within their fields:
- Customer Handling or Relationship Building
- Customization and Tailored Services
Overall, these four key components are what make the ultimate difference.
Businesses are no longer paying for a utility like service – they’re investing in a solution. Similar to dating, but instead of thumbing through tender, you’ve committed yourself to one person versus dating someone new every week; the solution-based model removes the “transaction” like experience and helps pave the way for a long-term relationship. We break it down even further for you below.
Breaking it down further
Customer relations: Large firms do not have the time to give individual attention to each customer. They can’t cater to every customer’s unique need or spend hours reviewing their service with them. Their methods are more formal and professional. The customers have to go through a chain of people instead of directly dealing with the person in charge. In other words, you pay me for this service; I provide you the service – end of discussion. Smaller firms, on the other hand, focus more on relationship building so they can retain their clients. Their dealings are more intimate because the people in charge are usually the ones handling the client’s requests. Also, smaller firms have fewer clients giving them the ability to spend more time with each customer.
Specialization: Small firms are more focused and are providing one service; unlike larger firms who are producing numerous services and products. Not only does specialization give smaller firms an advantage, allowing them to develop the most effective strategies and streamlining production, it also helps them achieve economies of scale.
Customization: Larger firms usually have a generic service with fixed rates that are functional for all their clients. Smaller firms, on the other hand, need to do more to survive in the market, which allows them the upper hand. Smaller firms can “tailor make” their cloud services based on the customer’s needs, budget, requirements, and the industry they are operating in.
Innovation: If you offer the same thing that everyone else is offering then why would customer select you? Innovative products and services are the name of the game and help establish a small firms mark. Giving them a leg up on offering unique services.
All of these points are where small cloud providers and cloud computing startups can create the highest value. Working on these areas is key to thriving within the market. Firms that are already focusing on improving these areas are seen as taking more considerable strides in the cloud computing market.
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Why Focus on Direct Connection when there is Internet Access?
Cloud computing offers businesses a wide variety of solutions for their information sharing and storage needs. Most companies are now relying on a cloud-connect that gives them access to cloud application services. Most IT departments will carefully evaluate the pros and cons of whether a direct connection to cloud services is the right way to do things or if an internet connection is enough.
There IS a simple way!
If you want a stable and reliable way of managing your cloud, then direct access to your cloud server is the way to go. Your business will be more productive, secure, cost-effective and reliable if you have immediate access to your cloud server.
Direct connectivity allows businesses to manage their cloud through a dedicated private cloud connection making it more secure than a public internet connection. There are several benefits to companies if they rely on direct cloud access. For example, the data transfer speeds are exceptional, there are lower latencies with private direct cloud services but with more security as compared with an internet connection.
High Performance with Low Latency
Businesses must use a direct connection to their clouds for consistently high performance. Your company will have a consistent throughput and productivity. When replacing long-haul Multi-Protocol Label Switching (MLPS) with short distance connection that gives direct access to servers that are geographically dispersed and in proximity to large numbers of users around the globe. Using an interconnection, colocation service provider and cloud computing providers are viable solutions.
Risk Mitigation and Security
Direct connection offers encryption that is much more secure than a public internet encryption. A direct connection is risk-free and considerably safer than an open connection. Avoiding hacking risks during critical workload time is susceptible to a direct link. Businesses can reduce their security breaches while handling sensitive data if they have a private and direct access to cloud services.
Cost Effective with Predictable Service
Direct connection to the cloud will give businesses a reliable source for sharing data during heavy congestion and outages. IT managers will have more control over the routes through which data is transferred. Direct cloud access gives companies more flexibility in their network, which is appropriately managed. The result of a flexible network saves the company from losing revenue by network breach if you have direct access from your cloud-hosting providers.
Business usually segments their sensitive data when sending it through private connections near cloud services. A company can reduce its cost of network bandwidth and rely on local network peers that are cost-effective when cloud-based services provide you with direct access.
To learn more about direct connectivity to cloud services, check out our Cloud Connect – where all your services are connected!
Massive Networks provides data transport solutions across the entire US domestic carrier ecosystem and to 181 countries worldwide.
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