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In This HP Cloud Source Blog, HP Expert, Christian Verstraete will examine cloud computing challenges, discuss practical approaches to cloud computing and suggest realistic solutions.

B2B or B2C for cloud services? Does it matter

Recently I was discussing trust in the cloud and some of the people I was speaking to argued we need to differentiate between B2B and B2C when talking about public cloud services. Frankly I did not understand what they really meant. So, I asked them how they would define a “B2B cloud” versus a “B2C cloud”. Howe3ver, their explanation was not really convincing.

So, let me share with you what the differentiation was. A B2B cloud was, in their mind, a public cloud where a specific contract was signed between the customer and the cloud provider. I do know that Amazon for example, has a team recruiting what they call enterprise customers. Those customers are accepting legal terms and conditions (T&C’s) that are different from the standard ones on their website. By that definition, a B2C cloud relationship is one that uses the standard terms and conditions, you know the ones we all read before checking the box “Accepting Terms & Conditions”.

This came up in a discussion around
the lack of transparency of public cloud, I mentioned in a previous post and that my colleague Rafal Los completed. The debate was focused on the necessity to establish regulation to ensure the user would clearly understand what he is getting into when subscribing to a cloud service, and which type of customer should benefit from such regulation. To increase trust in public cloud it is critical that users are clearly made aware of who delivers the service and what it entails.

Negotiate on your own terms.
When you can negotiate your own agreements, you have the possibility of better understanding what you will get and how to protect you from borderline T&C's. But the fundamental question is whether services can be separated between consumers and businesses. If not, the discussion becomes sterile as the same service does have both types of customers and requires the regulation anyway. Actually, are businesses and consumers using different services?

In my mind, the boundaries are blurring very fast. Yes, businesses probably do not use "angry birds", but many SMB's use Skype, office 365, window live, dropbox etc. Is LinkedIn a business or consumer service? And I could go on like that but you get my point.

Shadow IT can be dangerous.
Particularly in larger enterprises, where IT may seem to lack the agility the business would like, users continue to use "
shadow IT", risking to put the assets of the enterprise at risk, it's important that appropriate protections are put in place to limit exposure. Cloud service providers should understand that and avoid using T&C's that protect themselves while exposing their customers. 

Education of cloud users is also long overdue. They need to understand what they expose themselves and their enterprises to when signing the proverbial T&C's that they all read completely before checking the box, right? 

To conclude is there a difference between B2B and B2C services in the cloud. Not in my understanding.  Customers may have different T&C’s for consuming the same service. But shouldn’t we make sure all customers are protected and know what the implications of their decisions are, even the ones that are not powerful enough to negotiate their own contracts? Do you disagree? Don’t hesitate to comment.

Labels: Cloud| Cloud Source
Joost van der Vlies | ‎11-29-2011 02:29 AM

Good discussion!


I think it totally depends on the definition and type of the service. If you want to provide a service you would have thought about the possible type of consumers, and therefore have made sure the service functionality and design serves that type or types of consumers. If you provide a service dedicated for large enterprises, it would probably not suite an individual consumer functionally (mySap? Smiley Happy) . If you provide a social web service like LinkedIn, you know (and designed for it) you will have enterprises and individual consumers as users. LinkedIn provides additional services for enterprises on top of the standard set of services.


So also the granularity of the service definition is important!


So I think common sense prevails here again. It just depends on the functionality of the service, the type of actors it plans to provide it for, and possible sub types of the service for different T&C, SLA characteristics and additional functionalities. The chosen granularity of the service while communicating about it (e.g.. Amazon AWS in general), is then a decisive factor.

| ‎11-29-2011 08:22 PM

I can only agree with your statement. Yes, it depends on the service you build. But, with the exception of very large services such as mySAP, most services cover a veriety of users, and so the separation between B2B and B2C does not really makes sense, at least in my mind.

On the granularity you are correct again, this is critical to have a service that can be re-used, but at the same time that is easy to re-use. Probably worth a blog entry in its own right.

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About the Author
Christian is responsible for building services focused on advising clients in their move to cloud, particularly from a business process and ...

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