Don’t pay attention to cloud provider revenue, pay attention to performance

Don’t pay attention to cloud provider revenue, pay attention to performance

Don’t pay attention to cloud provider revenue, pay attention to performance

Written by David Linthicum for Nelson Hilliard

You can tell when it’s earning season for the cloud providers.   I get an e-mail an hour talking about how cloud revenue has grown for some big publicly traded company, and how I should write a story about their great success.    

As I’m finding there are liars, damn liars, and cloud revenue reports.    The cloud revenue reports, for many of the larger enterprise software players, attempt to spin everything at cloud revenue.   Be it electronic commerce systems, kinda-sorta private clouds, or just applications that can be remotely delivered.   It’s beginning to become so bad that you have to spend hours attempting to figure out what’s cloud, and what’s cloud washed.   

However, I would urge you not to care so much about revenue.   We have a tendency to get too caught up with who’s winning, and thus looking at that cloud provider as the best bet.   

The real contender for your cloud computing dollars should be cloud providers that have a good record of performance and can prove that record to you without you having to ask a hundred questions.  While the market position is important for those buying stocks or investing in cloud startups, the metrics for enterprises adoption are much different.  Thus, let’s stop paying so much attention to revenue.      

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David S. Linthicum is a managing director and chief cloud strategy officer. David is internationally recognized as the worlds No.1 cloud computing industry expert, pundit and thought-leader.

(Disclosure: David Linthicum’s views in the blogs, video shows and podcasts are his OWN and are NOT financially sponsored by Nelson Hilliard)

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