not all cloud are created the same. Multi-tenant architecture with shared capacity resources will ensure centralized release management by the vendor, reduce upgrade resource requirements on the client side, and minimize professional service hours required to ensure performance and feature relevancy of single tenant solutions hosted on non-shared data centers.

1. The Grey Skies of Cloud Commerce:
5 Ways to Spot Pretenders
Author:
Department:
Date:
Dan Shim, Business Analyst
Product and Solutions Marketing
th
September 17 , 2013
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2. Cloud delivery models come in different colors. While various shades may look
similar, the reality is that genuine Software as a Service (SaaS) in the cloud is
fundamentally different from licensed software hosted by Managed Service
Providers. And in the fast-moving world of digital commerce, there’s a clear
competitive advantage that genuine SaaS in the cloud brings to high-growth
retailers. The following five commercial and architectural facts separate true
cloud providers from cloud pretenders.
1. Is it necessary to purchase hardware or software?
Cloud Provider: Access to the platform is available via the web with no upfront
capital to procure software, hardware or infrastructure licenses.
Cloud Pretenders: Software licenses must be procured and hosted by
dedicated set of servers. Cloud pretenders offer a method of paying for the
software in recurring installments – these installments give you access to a
single distinct and isolated version of the software license and limited amount
of capacity which is hosted in a data center. In the event a user decides to
shift the hosted application on-site, a license repurchase is often required for
the relocation.
2. How are upgrades implemented into the platform?
Cloud Provider: Platform and feature upgrades are seamlessly introduced into
the user environment and are readily available at the next logon. These
enhancements are released several times per year, so users take advantage
of continual innovation to stay ahead of consumer demands.
Cloud Pretenders: Software version upgrades are not automatically pushed
out. Updates and upgrades are optional to the application owner and
generally entail incremental charges, costly migration projects and business
disruption, including downtime. Integrations to third-parties -- based on the
technical, architectural and functional updates -- often require extensive
rework and QA to ensure compatibility and performance.
3. Is there a need to forecast peak capacity loads and purchase hardware
and software to meet that peak capacity?
Cloud Providers: Providing on-demand and elastic scalability is a core
attribute of true cloud applications and estimating capacity is not required.
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3. Cloud Pretenders: Managed Service Providers (MSP) providing hosting
services for licensed software generally charge a fixed and recurring hosting
fee based on forecasted capacity requirements and in the case of
unanticipated capacity needs, additional infrastructure must be procured
along with new payment terms and conditions. After the capacity is procured
it often takes time to introduce the capacity into the environment.
4. Are users accessing different versions of the application?
Cloud Providers: The architecture of a genuine cloud model ensures that all
users access the latest version of the application every time they log on.
Cloud Pretenders: Hosted applications are generally a single instance of
software operated and managed independently from user to user.
Consequently, the version of the software varies across each client
depending on the date of adoption, upgrades purchased, and incremental
modules procured.
5. How easily are third-party applications integrated into to my website?
Cloud Providers: Users can configure, customize and develop unique
designs, functionality, and user experiences without the concern of ensuring
compatibility with future platform upgrades or scalability of infrastructure.
Cloud Pretenders: New customizations and functionality enhancements on
hosted software require modifications to the base code that preclude the
ability to upgrade effectively in the future. Additional performance evaluations,
scalability testing, quality assurance, and prolonged downtime may be
required.
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