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GoDaddy recently announced it will no longer offer cloud servers to businesses after concluding it does not have the right solution for small and medium-sized businesses (SMB), and instead has decided to focus on its core business.

Both Zumodrive and Rackspace (News - Alert) have also rationalized their cloud products from their current offerings within recent months, according to dinCloud.

The Los Angeles-based cloud transition company, which helps organizations migrate their IT infrastructure to the cloud, dinCloud says it’s all about the offering and that cloud service providers need to be more than just a “pure play” hoster.

Virtualization and cloud isn’t just about cloud hosted servers or giving customers a bunch of rack space, it’s about business provisioning, according to Ali Din, senior vice president and CMO at dinCloud.

“If you try to do just one piece in the cloud, you might face some challenges linking everything together, especially if you don’t have a team of technical folks that have time to manage a hybrid infrastructure,” Din said in a recent interview with TMCnet. “This is probably why current hosting companies and older data center providers are struggling with providing a reliable cloud service.”

In terms of trends among hosting and data center companies rationalizing their cloud products, Din told TMCnet that a lot of traditional hosters are looking for ways to expand their service offerings.

“Natural extensions from web hosting and email lead to collaboration, archiving, etc. However, these are not big ticket items in most cases and do not help move the needle for larger players. The adoption of growing the existing base is slow on these additional service offerings,” explained Din. “With that, hosters have started extending product offerings, but due to market pressures, have had to roll out these services quickly.”

Unfortunately, services, like virtual private servers, are not as simple as Web hosting. It isn’t a matter of hosting rack space – customers need help getting onto the cloud and these hosters are realizing there is a lot more complexity in the business.

“Hosted virtual desktops, a very exciting and attractive offering, is even more complicated. We are seeing a trend that hosters jump in, then roll-back on some of these services, and fine-tune their lessons-learned – however, they will definitely be coming back into the cloud services marketplace,” Din said. “What they need to solve – the missing element – is the on-boarding support professional services for configuring these more complicated services, data migration, and user management (Active Directory enablement, migration, etc.).”

dinCloud provides professional services in two ways. One is through its channel network of partners that bring the customers onto the dinCloud platform.

The other is by delivering these services on behalf of the customer.

“This ranges from the configuration of virtual machines, to network security setup (VPN, etc. through the software defined network - SDN), to implementing software such as SharePoint or other applications for the end-customer,” Din added. “We do this through our business provisioning methodology, which calls for white-glove treatment. Making sure the journey to the cloud is not bumpy, but more of a heavenly experience.”