Despite tightening IT budgets amid macroeconomic uncertainty, cloud computing spend continues to go up and up. Over the past two years, more than 86 percent of companies have reported increasing the scope and volume of their cloud initiatives.

While some drivers of cloud adoption are well-known, like potential cost savings and greater scalability, others are emerging. Shifting workloads to the cloud is helping businesses across a range of sectors manage data sovereignty, compliance, and disaster recovery requirements. The rationale will be different from organization to organization but the overall story is that cloud computing is integral to modern business operations.

However, not all cloud service providers are created equal, and selecting the right provider can drive efficiency, innovation, and, ultimately, act as a significant competitive advantage.

Key factors in selecting a cloud service provider

For IT leaders in the market for a new cloud provider – it’ll quickly become clear that there’s considerable overlap between service providers. Rather than top-level comparison, then, IT teams need to dig deeper to ensure a cloud service meets their needs and will make a positive impact on business outcomes.

This should mean ensuring a provider's capabilities align closely with specific business needs and carrying out careful comparisons of pricing structures to find the best value within budget constraints. Organizations should also look to cloud service providers offering flexible contractual agreements that adapt to their specific business model. It’s also important to assess the level and quality of support and services that a prospective cloud service provider partner offers, as reliable assistance from partners can be invaluable in the complex cloud domain.

Wider commercial factors should also be considered. Co-sell opportunities are a powerful example. If a cloud provider actively sells third-party products or services to their customer base, typically via a digital marketplace on their cloud platform, then this is a big opportunity. An enterprise weighing up that cloud service can sell their product or service through the cloud provider’s channel during negotiations. This could open lucrative new revenue streams through tapping into the cloud provider's customer network.

A cloud service provider’s partner network is also important. Best-in-breed networks offer valuable resources, such as access to specialized expertise, tailored support, and industry-specific solutions. Networks that boast a diverse range of partners, including system integrators, managed service providers, and independent software vendors are a big draw.

All these factors can be brought into the decision-making process when evaluating cloud services to ultimately steer the business toward the best cloud service for them.

Ensuring data security and compliance

With increased data breaches and corresponding stronger regulation on the horizon, choosing a cloud provider that prioritizes security and compliance is crucial. While many reputable cloud service providers maintain a comprehensive list of regulations that their cloud networks conform to – such as GDPR, ISO 27001, and SOC2 – what truly sets providers apart is their approach to compliance, security, and operational resilience. This has become even more critical with the introduction of the Digital Operational Resilience Act (DORA) which creates a comprehensive information technology risk management framework for the EU financial sector.

For example, some providers distinguish themselves through data locality transparency, allowing customers to meet stringent data residency requirements. Others differentiate themselves through a wide range of customizable compliance dashboards that offer real-time insights available to end users. Alternatively, some providers offer proactive security measures such as AI-driven threat detection and others still offer dedicated compliance support teams that assist customers in navigating complex landscapes. It’s down to enterprises to weigh up these points of differentiation in cloud services and decide which feature is going to help them get compliant with regulation that mandates resiliency.

Many providers also offer trust portals. They’re a transparent source of information about a cloud provider’s security measures and compliance status. These portals can be particularly useful for organizations using that cloud to communicate general security practices, data center locations, and compliance certifications to customers and stakeholders. However, it’s important that end-user enterprises don’t use trust portals as a catch-all resolution to all queries about the way they’re using the cloud. Matters concerning data privacy, for example, will usually require direct and personalized action.

Choosing the most appropriate cloud model

In weighing up business and compliance requirements – IT teams shouldn’t lose sight of their technical requirements of the cloud. In practice, this means selecting a cloud service with a model that meets an enterprise's specific needs.

Public clouds offer shared services over the Internet. This is ideal for cost-sensitive operations but may have more complex security implementations compared to the private cloud. Private cloud provides enhanced security and control to end users but may incur higher costs due to infrastructure investments and management overheads. A hybrid cloud model combines public and private elements, offering flexibility and scalability. They're a great option for businesses with specific security requirements or data processing needs that shouldn't be public. The hybrid cloud also provides more support for concepts like cloud bursting, allowing organizations to scale compute resources as needed.

Embracing cloud innovation for success

Cloud migration isn’t new but continues to top the transformation agenda of many organizations today. The cloud is pivotal in addressing escalating security and data privacy challenges. The surge in generative AI and machine learning breakthroughs is also accelerating cloud adoption, driven by the need for robust Graphics Processing Units (GPUs) and vast data storage requirements that only cloud infrastructure can reliably provide for most organizations. The IT landscape is transforming as a result. Organizations need an agile, scalable, and compliant cloud infrastructure capable of meeting complex deployment requirements.

Selecting the right cloud provider is more than just a technical decision, it’s a strategic move that can significantly impact business outcomes. It’s a complex process that spans both business and IT. Through careful consideration of the factors outlined in this article, – organizations can land on a cloud provider that equips them with infrastructure set up for future success. These organizations will feel the benefits of enhanced operational efficiency and a competitive edge over businesses that haven’t got an optimal cloud posture.