While the cloud has generated significant hype lately, there are many who are still asking whether or not this infrastructure method will become the norm. For service providers, the trend toward the cloud as the standard is providing an opportunity for higher margins, lower costs and satisfied customers. Plus, cloud management software can enhance the experience – is there anything that could go wrong?

A recent blog on the federated cloud suggests that something could indeed go wrong for those customers relying on the Amazon cloud. It’s not just a competitive attack; the company’s dominance in the market – with 50 percent market share and $1 billion in revenue – presents a challenge for end users turning to cloud management software. Let’s take a closer look to find out why.

When viewing the opportunity from the perspective of the service provider, Amazon offers considerable scale, massive reach and a very broad product set. Such positioning would suggest the smaller provider lacks the time and resources to create a range of services with that kind of depth and breadth. Fortunately, the smaller provider can deliver the cloud management software needs of the user effectively, even without this size.

From the end user perspective, Amazon is certainly perceived as expensive. Even at its top rates, users struggle to get support that is both affordable and professional. Amazon’s service has also been reported as tricky to use, which can be a stumbling block for those non-developer users. Plus, the service is not truly global in that there are still vast regions that are left un-served.

For those seeking access to cloud management software for their apps, global coverage is a true demand as the user experience must be local, always on, instant and complete with low latency. Such an experience with Amazon tends to exist only within the major countries and cities. Even within the U.S., close access points are often found in a different state.

By contrast, the federated cloud offers survival and even prosperity for traditional service providers as they can pool their resources to buy and sell on a truly global basis. Cloud services built on a common cloud management software platform that provides access to providers throughout the global market ensures users can truly realize the full benefits of the cloud.

Plus, the benefits for the service provider are clear, as they not only reach a larger subscriber base, they also can monetize on their idle capacity, providing scalable solutions and failover options. The cloud services offered can easily be expanded without the need to build new infrastructure.

While the cloud offers an opportunity for maximizing performance at the lowest cost, it can also serve as an opportunity for growth and expansion for those providers willing to take the risk. The demand for cloud management software exists – providers simply need to be willing to partner and take the risk that the resulting platform offers a competitive advantage.

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