Executive Summary

Cloud delivery models are witnessing an increasing adoption across enterprises. Enterprise buyers believe that as of today, cloud infrastructure services require a greater analysis, compared to the other layers of applications and platforms.

Buyers earlier cited multiple concerns of security, reliability, and enterprise readiness in cloud discussions. However, their thinking is now evolving towards selecting and engaging with the right cloud service provider. They want to move beyond an ad-hoc temporary access of cloud infrastructure and strategize towards integrating these models across enterprise IT set-up.

Though buyers realize the value of cloud services, they are overwhelmed by the sheer number of offerings, aggressive vendor marketing, and limited success stories. Moreover, they lack full confidence in their abilities to select the right cloud service provider. Many of them are unsure of their true requirements and, therefore, of defining them for cloud services.

There are multiple challenges in the cloud service provider evaluation process, not only in terms of criteria to be used, but also engagement models. Unlike traditional sourcing initiatives, where buyers had comprehensive processes, there is a lack of knowledge that can be referenced in the new cloud ecosystem.

However, buyers who overcome these challenges and select the correct cloud service providers stand to gain significantly from a mutually beneficial partnership.

This report analyzes the challenges buyers face while evaluating cloud service providers. It also discusses frameworks and strategies buyers may leverage for this purpose. This process needs to be customized for various buyer set-ups. However, it is suitable for most of the environments.

This report focuses on:

• Cloud adoption in enterprises
• Challenges in evaluating a cloud service provider
• Framework to evaluate and select a cloud provider:
  • Criteria to evaluate
  • Shortlisting process
  • Engagement models