CHAPTER 6

Strategy and Value

Cloud services are worthy of consideration only if they create value for their customers. Many believe that the value of the cloud can be simply characterized by either reduced costs or increased agility. The term “agility” is often bandied about in cloud discussions, but what it actually is and how to actually quantify it never seem to get defined. Another value driver—customer or user experience—is the forgotten stepchild of cloud: Entire books have been written about business in the cloud that do not mention the customer experience even once.

“Value” is complex.

Values of the cloud, such as cost reduction and agility enhancement, may be more or less relevant depending on strategy. Strategy is not decided in a vacuum but is a function of capabilities and competencies relative to the competition, and the global environment: macroeconomic factors, regional growth, regulatory and legal constraints, and others.

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