Data Center Optimization: Grow a Cloud Services Business with Data Center Modernization

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As a cloud service provider (CSP), the benefits of upgrading your data center go straight to the bottom line – much more so than your average enterprise. Your data center provides the foundation for the services you deliver and even small improvements to efficiency or cost effectiveness can make a big contribution to building your business and increasing profits.

There are four ways to grow a business:

1. Cut your costs delivering your services

2. Get more customers

3. Increase average revenue per customer

4. Improve customer retention

This is true whether you offer Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) or Software-as-a-Service (SaaS). Whatever your business model, the eGuide Four Ways to Grow a Cloud Business Through Data Center Modernization will help you understand the specific optimizations that can help you grow.

The following are quick insights on how optimizing your data center can help you build your business.

“There is no question that AI represents a once in a generation opportunity for societal advancement.” Lisa Spelman, Intel

Lisa Spelman, Intel

1. Cutting the Cost of Service Delivery

Meeting customer expectations as cost effectively as possible – without compromising on performance – is one of the critical success factors for today’s CSPs. As workloads become increasingly demanding, supporting them with an aging infrastructure can be challenging as well as costly. Modernizing your data center can dramatically improve the business potential of each rack, allowing you to offer more competitive pricing, increase margins, or some combination of the two.

2. Getting More Customers

Equally as important as achieving efficiency, is differentiating your business from the hundreds of other cloud providers out there offering similar services. Companies expect their spending on value-added services from CSPs to double over the next two years1, so the time is right to build your customer base with new offerings.

Modernizing your data center to create a platform for supporting these new services will help CSPs to meet this second objective. Data center optimization is important to this process because many new and emerging cloud workloads, such as artificial intelligence (AI) or Bare Metal-as-a-Service (BMaaS), can make greater demands on the infrastructure, potentially affecting performance if not managed correctly.

Optimizing your data center with these specific workloads in mind – by upgrading compute, network or storage capabilities, for example - can help you create a competitive and differentiating service portfolio while maintaining a good level of performance across your infrastructure.

Improving Revenue and Retention Across Your Customer Base

Upgrading your cloud platform is not only about reducing costs and building out new services – it can also contribute to business goals that are typically more complex, such as extending the lifespan of a given customer or improving the volume or value of sales from existing customers:

3. Increasing Average Revenue Per Customer

Optimizing the data center for performance or cost effectiveness could allow a CSP to increase prices or sell more services per customer.

4. Increasing Customer Retention

Delivering improvements in the performance of existing workloads or enhancing security-enabled features may prevent customers from looking elsewhere for their cloud services provision.

To understand more about how you can optimize your infrastructure to take your cloud services to the next level, read the eGuide Four Ways to Grow A Cloud Business Through Data Center Modernization.

“Businesses expect the portion of spending that goes to value-added services to double (from 10.7% to 22.7%) over the next two years.” 451 Research Pathfinder Report, CSPs: Meet Your Future Customer.

451 Research Pathfinder Report, CSPs: Meet Your Future Customer