cloud computing business plan sample

Cloud Computing Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Technology Sector

Are you about starting a cloud computing business? If YES, here is a complete sample cloud computing business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a cloud computing business. We also took it further by analyzing and drafting a sample cloud computing marketing plan template backed up by actionable guerrilla marketing ideas for cloud computing businesses. So let’s proceed to the business planning section.

Cloud computing is an emerging paradigm computing concept that enables both information technology infrastructure and software to be delivered directly over the internet as a service. This is an arrangement that enables companies to expand their network capacity, and run applications directly on a vendor’s network.

It offers a host of advantages with the most primary being radically lower IT costs. The lower budgetary requirements and commitments allow even smaller companies to piece together an IT project without spending on purchasing legacy server, and storage systems.

In the same vein, the burden of developing and maintaining the technological expertise required in running the network is transferred to the service provider. The pay-per-use basis of cloud computing helps transform the way IT departments create and deploy customized applications during these difficult times.

By offering a more cost-effective, less risky, and fundamentally faster alternative to on-site application developments, cloud computing is poised to transform the economics of information technology in the next few years.

The internet is a foundation for cloud computing, and the term “cloud” is used as a metaphor for the Internet. Thanks to new and improved networks, the Internet is fast becoming a vehicle for delivering computational requirements. The ubiquity of the Internet and the widespread availability of high-speed broadband access are the primary factors driving the movement towards the cloud.

If you have decided to start your own cloud computing business, then you should ensure that you carry out thorough feasibility studies and market survey. Business plan is yet another very important business document that you should not take for granted when launching your own business.

Below is a sample cloud computing business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Cloud Computing Business Plan Template

1. industry overview.

The global cloud storage market is expected to grow from USD 18.87 billion in 2015 to USD 65.41 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 28.2 percent. Cloud storage solution and services are currently being offered by numerous vendors such as IBM, Microsoft, Google, Amazon Web Services, VMware, Box, Fujitsu, Rackspace, AT&T, and HP.

These vendors are selling variations of cloud storage solutions and managed services. However, there is a price war between these cloud storage service providers globally as they keep reducing their prices and increasing their volume of storage.

Storage solutions are evolving as several companies have entered into the market and are offering advanced solutions to store data at minimum cost.

The first digital storage device was introduced in 1890 when Herman Hollerith, founder of Tabulating Machine Company, used punch cards to read and record data. Thus, the storage market has evolved and in the present scenario, the user can save up to 1 GB of data free of cost on cloud storage and access it from any remote location.

Factors such as rising need for big data storage and increasing adoption of cloud storage gateways are driving the demand for cloud storage solutions globally.

The cloud storage market has been segmented on the basis of types into solutions and services; on the basis of solutions into primary storage solution, backup storage solution, cloud storage gateway solution, and data movement and access solution; on the basis of services into consulting services, system and networking integration, and support training and education.

Cloud storage provides users with immediate access to a broad range of resources and applications hosted in the infrastructure of another organization via a web service interface. Cloud storage can be used for copying virtual machine images from the cloud to on-premises locations or to import a virtual machine image from an on-premises location to the cloud image library.

In addition, cloud storage can be used to move virtual machine images between user accounts or between data centers. Cloud storage can be used as natural disaster proof backup, as normally there are 2 or 3 different backup servers located in different places around the globe.

Users access cloud computing using networked client devices such as desktop computers, laptops, tablets and smartphones and any Ethernet enabled device such as Home Automation Gadgets. Some of these devices—cloud clients—rely on cloud computing for all or a majority of their applications.

Some of the factors that encourage entrepreneurs to start their own cloud computing business could be the growing recognition of economic and operational benefits and the efficiency of cloud-computing. As companies ease out gradually from economic uncertainties and financial shackles, widespread adoption of cloud services is in the offing.

The pragmatic and successful adoption of this technology concept by early adopters will pave the way for mass enterprise adoption of cloud services in the upcoming years.

The transition of enterprises from virtual machines to the cloud will additionally extend the impetus required for strong growth. Poised to score the maximum gains will be end-to end cloud-computing solutions that offer complete functionalities ranging from integration of internal and external clouds, automation of business critical tasks, and streamlining of business processes and workflow, among others.

Over and above, starting a cloud computing company requires professionalism and a good grasp of the ICT industry. Besides, you would need to get the required certifications and license and also meet the standard security expected for players in the industry in the united states; the industry is heavily regulated to guard against fraud and criminality.

2. Executive Summary

Silver Lining® Cloud Computing, Inc. is a licensed cloud computing company that will be located in San Diego – California. We have been able to secure a long term lease agreement for a standard office facility in an ideal location that is most suitable for the kind of business we want to run.

Our services will cover computer computing services areas such as; web based cloud computing, infrastructure as a Service (IaaS), software as a service (SaaS), platform as a service (PaaS), utility services, managed services, service commerce, hardware as a service, and workplace as a service et al.

We are aware that businesses these days require diverse and sophisticated approaches. This is why we will position our cloud computing company to offer a wide range of services as requested by our clients.

Silver Lining® Cloud Computing, Inc. is a client-focused cloud computing company that provides broad-based experience at an affordable fee that won’t in any way put a hole in the pocket of our clients. We will offer a complete range of cloud computing services to our clients and we will ensure that we work hard to provide the required services needed by our clients.

At Silver Lining® Cloud Computing, Inc. our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Silver Lining® Cloud Computing, Inc. is founded by Clarkson Duke and his friend and business partner David Shannon. The organization will be managed by both of them since they have combined experience and qualifications in the ICT services industry.

Clarkson and David graduated from MIT with degrees in Computer Technology and Business Management. They are Cloud Certified Professional, IBM Certified Cloud Solution Architect v1 and v3, Red Hat Certificate of Expertise in Infrastructure-as-a-Service.

3. Our Products and Services

Silver Lining® Cloud Computing, Inc. is going to offer varieties of services within the cloud computing line of business in the United States of America. Our intention of starting our cloud computing company is to make profits from the industry and we will do all that is permitted by the law in the United States of America to achieve our aim and ambition.

Our business offerings are listed below;

Web Based Cloud Computing
Infrastructure as a Service (IaaS)
Software as a Service (SaaS)
Platform as a Service (PaaS)
Utility Services
Managed Services
Service Commerce
Hardware as a Service
Workplace as a Service

4. Our Mission and Vision Statement

Our vision is to build a world class cloud computing company that can favorably compete with leaders in the ICT services industry.
Our mission is to provide a professional and trusted cloud computing platform and services that will assist businesses and non – profit organizations in operating sustainably. We will provide trusted and reliable cloud computing business solutions in combination with our own business backgrounds, and deliver valuable services in a timely and cost-effective way.

Our Business Structure

Silver Lining® Cloud Computing, Inc. is in business to become one of the leading cloud computing companies in the whole of San Diego – California and we are aware that it will take the right facility, management and organizational structure to achieve our goal.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

Our business will not be built only for the purpose of giving our clients value for their money, but also we will ensure that we make our work environment highly conducive for all our employees. We will provide them with facilities that will help them stay motivated and deliver on their various tasks and goals et al.

In view of that, we have made provisions for the following positions to be occupied by highly qualified and experienced staff;

Chief Executive Officer / Lead Consultant

Cloud Computing Specialist

Admin and Human Resources Manager
Accountant / Cashier
Marketing and Sales Officer
Customer Care Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

Increases management’s usefulness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions.
Builds, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Accountable for fixing prices and signing business deals
Responsible for providing direction for the business
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization
Answerable for handling core services such as web based cloud computing, infrastructure as a Service (IaaS), software as a service (SaaS), platform as a service (PaaS), utility services, managed services, service commerce, hardware as a service, and workplace as a service et al.
Handles any other services as assigned by the chief executive officer

Admin and HR Manager

Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Designs job descriptions with KPI to drive performance management for clients
Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
Defines job positions for recruitment and managing interviewing process
Carries out induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Oversees the smooth running of the daily office activities.

Marketing and Sales Officer (2)

Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
Recognizes development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of projects.
Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
Responsible for handling business research, market surveys and feasibility studies for clients
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Develops, executes and evaluates new plans for expanding sales
Documents all customer contact and information
Represents the organization in strategic meetings
Helps to increase sales and growth for the organization.

Accountant/Cashier:

Responsible for preparing financial reports, budgets, and financial statements for the organization
Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting for the organization
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensures compliance with taxation legislation
Handles all financial transactions for the organization
Serves as internal auditor for the organization.

Client Service Executive

Welcomes clients by greeting them in person or on the telephone; answering or directing inquiries.
Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
Through interaction with clients on the phone, uses every opportunity to build client’s interest in the organization’s services
Manages administrative duties such as membership registrations and other related tasks assigned by the management in an effective and timely manner
Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
Distributes mails in the organization
Handles any other duties as assigned the line manager

6. SWOT Analysis

Silver Lining® Cloud Computing, Inc. is in business to provide cloud computing services to businesses within and outside the United States and at the same time to make profits. We are aware that there are competitions in the cloud computing line of business which is why we took out time to conduct an effective SWOT Analysis before investing our hard earned money into the business.

We know that if we get things right before starting our business, we will not have to struggle before attracting loyal clients and building our clientele base to a level where we can easily breakeven. We hired the services a Business consultant with bias in business structuring to help us conduct SWOT analysis for our company and he did a pretty good job for us.

Here is a of the result we got from the SWOT analysis that was conducted on behalf of Silver Lining® Cloud Computing, Inc.;

Our core strength lies in the power of our workforce. We have a team of creative, result driven and highly proficient cloud computing experts, a team with excellent qualifications and experience in various niche areas in the cloud computing and other related industry. Aside from the synergy that exists in our carefully selected workforce, our services will be measurable, result driven and guided by international best practices in the industry.

As a new cloud computing company in San Diego – California, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive ICT services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business especially via main stream media.

Opportunities:

The opportunities available to cloud computing companies are massive considering the number of corporate organizations that cannot successfully run their businesses without the professional assistance of cloud computing companies. As a standard cloud computing company, we are ready to take advantage of any opportunity that is available in the industry.

Some of the threats that we are likely going to face as a cloud computing company operating in the United States are unfavorable government policies , the arrival of a competitor within our location of operations and global economic downturn which usually affects purchasing/spending power. There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

Market Trends

Quite a number of distinct trends have emerged in the ICT services industry which is why cloud computing companies are positioning their organizations to survive the peaks and troughs of an ailing economy. As a matter of fact, most of these trends aid cloud computing organizations to become more creative, competitive, efficient, and productive in a global market. Some other trends in the ICT services industry could be attributed to changing demographics, attitudes and work styles.

The services or applications organizations are moving to the cloud are largely dependent on company size and industry. For instance, storage is the primary service for 40 percent of small businesses and 35 percent of mid-sized businesses, whereas large businesses and the federal government are first and foremost going to the cloud for conferencing and collaboration applications (40 percent and 39 percent, respectively). Organizations are also turning to the cloud for messaging, office and productivity suites, business process apps and computer power.

As the cost of cloud computing services continues to increase and as corporate spending falls, new cloud computing delivery methods will continue to emerge and gain momentum going forward. In addition, the market for cloud computing has shifted from a sellers’ market to a buyers’ market.

Lastly, it is now becoming trendy in the ICT services industry for smaller cloud computing companies to merge with bigger companies and for bigger cloud computing companies to acquire smaller companies; mergers and acquisitions. Many cloud computing companies all over the United States are coming to the conclusion that the bigger the better for them.

8. Our Target Market

Although Silver Lining® Cloud Computing, Inc. will initially serve small to medium sized businesses, from new ventures to well established businesses, but that does not in any way stop us from growing to compete with the leading cloud computing companies in the United States and on the global stage. We hope to someday merge with or acquire other smaller cloud computing companies and expand our cloud computing services beyond the shores of the United States of America.

As a full service business, Silver Lining® Cloud Computing, Inc. has a variety of practice areas to help startups grow. While we work with a variety of organizations and industries, we will also specialize in working with startups, real estate investors, and contractors, manufacturers and distributors, banks, lending and financial institutions.

We are coming into the industry with a business concept that will enable us work with the highly and lowly placed people and companies in the country. In other words, our target market is the whole of the United States of America and subsequently other parts of the world.

Below is a list of the people and organizations that we have specifically design our cloud computing services for;

Banks, Insurance Companies and other related Financial Institutions
Blue Chips Companies
Corporate Organizations
Retail Companies
Manufacturers and Distributors
Real Estate Owners, Developers, and Contractors
Research and Development Companies
The Government (Public Sector)
Schools (High Schools, Colleges and Universities)
Sport Organizations
Religious Organizations
Political Parties
Television Stations
Printing Press (Publishing Houses) and Authors
Branding and Advertising agencies
Entrepreneurs and Startups

Our Competitive Advantage

Surviving in the business world as a cloud computing business requires more than your expertise, knowing how to properly manage your business but also how to network with key people that can decide who will get a contract or business deal.

We are quite aware that to be highly competitive in the cloud computing line of business means that you are not only expected to deliver excellent services, but you must be result driven and able to meet set targets. No one would want to continue to hire your services if they can’t get tangible results.

Our competitive advantage lies in the power of our workforce. We have a team of creative, result driven and highly proficient cloud computing experts, a team with excellent qualifications and experience in various niche areas in the ICT Services industry and other related industry. Aside from the synergy that exists in our carefully selected cloud computing experts, our services will be measurable, result driven and guided by international best practices.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

Sources of Income

Silver Lining® Cloud Computing, Inc. is established with the aim of maximizing profits in the Silver Lining® Cloud Computing, Inc. and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis.

Silver Lining® Cloud Computing, Inc. will generate income by offering the following cloud computing services to organizations;

10. Sales Forecast

One thing is certain, there would always be corporate organizations, government agencies, non – profits and individuals who would need the services of cloud computing companies to help them improve their business system and processes.

We are well positioned to take on the available market in the cloud computing line of business and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our cloud computing company to enviable heights.

We have been able to critically examine the cloud computing market space, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in San Diego – California.

Below are the sales projections for Silver Lining® Cloud Computing, Inc., it is based on the location of our business and of course the wide range of our cloud computing services and target market;

First Fiscal Year: $240,000
Second Fiscal Year: $500,000
Third Fiscal Year: $750,000

N.B : This projection was done based on what is obtainable in the computer cum ICT services industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same cloud computing services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

Marketing Strategy and Sales Strategy

There are stiff competitions amongst cloud computing companies in the United States of America, hence we have been able to hire some of the best business marketers to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent job deliveries speak for us in the market place; we want to build a standard cloud computing business that will leverage on word of mouth advertisement from satisfied clients.

Our goal is to grow our cloud computing company to become one of the top 20 cloud computing companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in the United States but in the world as well.

Silver Lining® Cloud Computing, Inc. is set to make use of the following marketing and sales strategies to attract clients;

Introduce our business by sending introductory letters alongside our brochure to organizations and key stakeholders in San Diego – California and other parts of the United States
Promptness in bidding for cloud computing contracts from the government and other cooperate organizations
Advertise our business in relevant business magazines, newspapers, TV and radio stations
List our business on yellow pages’ ads (local directories)
Attend relevant international and local expos, seminars, and business fairs et al
Create different packages for different categories of clients in order to work with their budgets and still deliver quality cloud computing services to them
Leverage on the internet to promote our business
Engage direct marketing approach
Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our in house brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate and individual clients in the whole of the United States and beyond which is why we have made provisions for effective publicity and advertisement of our cloud computing company.

Below are the platforms we intend to leverage on to promote and advertise Silver Lining® Cloud Computing, Inc.;

Place adverts on both print (newspapers and magazines) and electronic media platforms
Sponsor relevant community based events/programs
Leverage on the internet and social media platforms like Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
Install our billboards in strategic locations all around San Diego – California
Distribute our fliers and handbills in target areas
List our cloud computing company in local directories/yellow pages
Advertise our services in our official website and employ strategies that will help us pull traffic to the site.
Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo

12. Our Pricing Strategy

Hourly billing for cloud computing services is a long – time tradition in the industry. However, for some types of cloud computing services, flat fees make more sense because they allow clients to better predict consultancy costs. As a result of this, Silver Lining® Cloud Computing, Inc. will charge our clients a flat fee for many basic services.

At Silver Lining® Cloud Computing, Inc. we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to startups, nonprofits, cooperatives, and small social enterprises.

Payment Options

The payment policy adopted by Silver Lining® Cloud Computing, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Silver Lining® Cloud Computing, Inc. will make available to her clients;

Payment via bank transfer
Payment with cash
Payment via credit cards / Point of Sale Machines (POS Machines)
Payment via online bank transfer
Payment via check
Payment via mobile money transfer
Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

If you are looking towards starting a cloud computing company, then you should be ready to raise enough capital to cover some of the basic expenditure that you are going to incur. You would need money to secure a standard facility, to acquire relevant storage hardware and software and you would need money to pay your workforce and bills for a while until the revenue you generate from the business becomes enough to pay them.

The items listed below are the basics we would need when starting our cloud computing company in the United States;

The total fee for registering the Business in the United States – $750.
Legal expenses for obtaining licenses and permits – $1,500.
Marketing promotion expenses for the grand opening of Silver Lining® Cloud Computing, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
Cost for hiring Business Consultant – $2,500.
Cost for computer software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, and QuickBooks Pro et al) – $7,000
Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,400.
Cost for payment of rent for 12 months at $1.76 per square feet in the total amount of – $105,600.
Cost for facility remodeling – $20,000.
Other start-up expenses including stationery ( $500 ) and phone and utility deposits – ( $2,500 ).
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $500,000
The cost for the purchase of furniture and gadgets (Internet server, Computers, Printers, Telephone, TVs, tables and chairs et al) – $4,000.
The cost of launching a website and acquiring the needed hardware and software storage facility – $50,000
Miscellaneous – $10,000

We would need an estimate of three hundred thousand dollars ( $300,000 ) to successfully set up our cloud computing in San Diego – California.

Generating Startup Capital for Silver Lining® Cloud Computing, Inc.

Silver Lining® Cloud Computing, Inc. is going to start as a partnership business that will be owned by Clarkson Duke and his friend and business partner David Shannon. They will be the sole financiers of the firm, but may likely welcome partners later which is why they have decided to restrict the sourcing of his startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

Generate part of the startup capital from personal savings
Source for soft loans from family members and friends
Apply for loan from the bank

N.B: We have been able to generate about $100,000 ( Personal savings $80,000 and soft loan from family members $20,000 ) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of any business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Silver Lining® Cloud Computing, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our cloud computing services and other related ICT advisory and consulting services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Silver Lining® Cloud Computing, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

Business Name Availability Check: Completed
Business Incorporation: Completed
Opening of Corporate Bank Accounts various banks in the United States: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance and software apps for the Business: Completed
Securing and renovating a standard office facility: In Progress
Conducting Feasibility Studies: Completed
Generating part of the startup capital from the founder: Completed
Applications for Loan from our Bankers: In Progress
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents: In Progress
Design of The Company’s Logo: Completed
Printing of Promotional Materials: Completed
Recruitment of employees: In Progress
Purchase of the needed hardware and software storage facility, internet server, computers / laptops, furniture, office equipment, electronic appliances and facility facelift: In progress
Creating Official Website for the Company: In Progress
Creating Awareness for the business (Business PR): In Progress
Health and Safety and Fire Safety Arrangement: In Progress
Establishing business relationship with key players in the industry: In Progress
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How to Write a Cloud Computing Business Plan [Sample Template]

Are you about starting a cloud computing business? If YES, here is a complete sample cloud computing business plan template & feasibility report you can use for FREE . Okay, so we have considered all the requirements for starting a cloud computing business. We also took it further by analyzing and drafting a sample cloud computing marketing plan template backed up by actionable guerrilla marketing ideas for cloud computing businesses. So let’s proceed to the business planning section.

Why Start a Cloud Computing Business?

Below is a sample cloud computing business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Cloud Computing Business Plan Template

1. industry overview.

Storage solutions are evolving as several companies have entered into the market and are offering advanced solutions to store data at minimum cost. The first digital storage device was introduced in 1890 when Herman Hollerith, founder of Tabulating Machine Company, used punch cards to read and record data. Thus, the storage market has evolved and in the present scenario, the user can save up to 1 GB of data free of cost on cloud storage and access it from any remote location.

Factors such as rising need for big data storage and increasing adoption of cloud storage gateways are driving the demand for cloud storage solutions globally. The cloud storage market has been segmented on the basis of types into solutions and services; on the basis of solutions into primary storage solution, backup storage solution, cloud storage gateway solution, and data movement and access solution; on the basis of services into consulting services, system and networking integration, and support training and education.

The pragmatic and successful adoption of this technology concept by early adopters will pave the way for mass enterprise adoption of cloud services in the upcoming years.

2. Executive Summary

3. Our Products and Services

Our business offerings are listed below;

Web Based Cloud Computing
Infrastructure as a Service (IaaS)
Software as a Service (SaaS)
Platform as a Service (PaaS)
Utility Services
Managed Services
Service Commerce
Hardware as a Service
Workplace as a Service

4. Our Mission and Vision Statement

Our vision is to build a world class cloud computing company that can favorably compete with leaders in the ICT services industry.
Our mission is to provide a professional and trusted cloud computing platform and services that will assist businesses and non – profit organizations in operating sustainably. We will provide trusted and reliable cloud computing business solutions in combination with our own business backgrounds, and deliver valuable services in a timely and cost-effective way.

Our Business Structure

In view of that, we have made provisions for the following positions to be occupied by highly qualified and experienced staff;

Chief Executive Officer / Lead Consultant

Cloud Computing Specialist

Admin and Human Resources Manager
Accountant / Cashier
Marketing and Sales Officer
Customer Care Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

Increases management’s usefulness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions.
Builds, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Accountable for fixing prices and signing business deals
Responsible for providing direction for the business
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization
Answerable for handling core services such as web based cloud computing, infrastructure as a Service (IaaS), software as a service (SaaS), platform as a service (PaaS), utility services, managed services, service commerce, hardware as a service, and workplace as a service et al.
Handles any other services as assigned by the chief executive officer

Admin and HR Manager

Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Designs job descriptions with KPI to drive performance management for clients
Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
Defines job positions for recruitment and managing interviewing process
Carries out induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Oversees the smooth running of the daily office activities.

Marketing and Sales Officer (2)

Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
Recognizes development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of projects.
Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
Responsible for handling business research, market surveys and feasibility studies for clients
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Develops, executes and evaluates new plans for expanding sales
Documents all customer contact and information
Represents the organization in strategic meetings
Helps to increase sales and growth for the organization.

Accountant/Cashier:

Responsible for preparing financial reports, budgets, and financial statements for the organization
Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting for the organization
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensures compliance with taxation legislation
Handles all financial transactions for the organization
Serves as internal auditor for the organization.

Client Service Executive

Welcomes clients by greeting them in person or on the telephone; answering or directing inquiries.
Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
Through interaction with clients on the phone, uses every opportunity to build client’s interest in the organization’s services
Manages administrative duties such as membership registrations and other related tasks assigned by the management in an effective and timely manner
Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
Distributes mails in the organization
Handles any other duties as assigned the line manager

6. SWOT Analysis

Here is a of the result we got from the SWOT analysis that was conducted on behalf of Silver Lining® Cloud Computing, Inc.;

Opportunities:

7. MARKET ANALYSIS

Market Trends

8. Our Target Market

Below is a list of the people and organizations that we have specifically design our cloud computing services for;

Banks, Insurance Companies and other related Financial Institutions
Blue Chips Companies
Corporate Organizations
Retail Companies
Manufacturers and Distributors
Real Estate Owners, Developers, and Contractors
Research and Development Companies
The Government (Public Sector)
Schools (High Schools, Colleges and Universities)
Sport Organizations
Religious Organizations
Political Parties
Television Stations
Printing Press (Publishing Houses) and Authors
Branding and Advertising agencies
Entrepreneurs and Startups

Our Competitive Advantage

9. SALES AND MARKETING STRATEGY

Sources of Income

Silver Lining® Cloud Computing, Inc. will generate income by offering the following cloud computing services to organizations;

10. Sales Forecast

Below are the sales projections for Silver Lining® Cloud Computing, Inc., it is based on the location of our business and of course the wide range of our cloud computing services and target market;

First Fiscal Year: $240,000
Second Fiscal Year: $500,000
Third Fiscal Year: $750,000

Marketing Strategy and Sales Strategy

There are stiff competitions amongst cloud computing companies in the United States of America, hence we have been able to hire some of the best business marketers to handle our sales and marketing.

Silver Lining® Cloud Computing, Inc. is set to make use of the following marketing and sales strategies to attract clients;

Introduce our business by sending introductory letters alongside our brochure to organizations and key stakeholders in San Diego – California and other parts of the United States
Promptness in bidding for cloud computing contracts from the government and other cooperate organizations
Advertise our business in relevant business magazines, newspapers, TV and radio stations
List our business on yellow pages’ ads (local directories)
Attend relevant international and local expos, seminars, and business fairs et al
Create different packages for different categories of clients in order to work with their budgets and still deliver quality cloud computing services to them
Leverage on the internet to promote our business
Engage direct marketing approach
Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

Below are the platforms we intend to leverage on to promote and advertise Silver Lining® Cloud Computing, Inc.;

Place adverts on both print (newspapers and magazines) and electronic media platforms
Sponsor relevant community based events/programs
Leverage on the internet and social media platforms like Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
Install our billboards in strategic locations all around San Diego – California
Distribute our fliers and handbills in target areas
List our cloud computing company in local directories/yellow pages
Advertise our services in our official website and employ strategies that will help us pull traffic to the site.
Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo

12. Our Pricing Strategy

Payment Options

Here are the payment options that Silver Lining® Cloud Computing, Inc. will make available to her clients;

Payment via bank transfer
Payment with cash
Payment via credit cards / Point of Sale Machines (POS Machines)
Payment via online bank transfer
Payment via check
Payment via mobile money transfer
Payment via bank draft

13. Startup Expenditure (Budget)

The items listed below are the basics we would need when starting our cloud computing company in the United States;

The total fee for registering the Business in the United States – $750.
Legal expenses for obtaining licenses and permits – $1,500.
Marketing promotion expenses for the grand opening of Silver Lining® Cloud Computing, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
Cost for hiring Business Consultant – $2,500.
Cost for computer software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, and QuickBooks Pro et al) – $7,000
Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,400.
Cost for payment of rent for 12 months at $1.76 per square feet in the total amount of – $105,600.
Cost for facility remodeling – $20,000.
Other start-up expenses including stationery ( $500 ) and phone and utility deposits – ( $2,500 ).
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $500,000
The cost for the purchase of furniture and gadgets (Internet server, Computers, Printers, Telephone, TVs, tables and chairs et al) – $4,000.
The cost of launching a website and acquiring the needed hardware and software storage facility – $50,000
Miscellaneous – $10,000

We would need an estimate of three hundred thousand dollars ( $300,000 ) to successfully set up our cloud computing in San Diego – California.

Generating Startup Capital for Silver Lining® Cloud Computing, Inc.

These are the areas we intend generating our startup capital;

Generate part of the startup capital from personal savings
Source for soft loans from family members and friends
Apply for loan from the bank

14. Sustainability and Expansion Strategy

Check List/Milestone

Business Name Availability Check: Completed
Business Incorporation: Completed
Opening of Corporate Bank Accounts various banks in the United States: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance and software apps for the Business: Completed
Securing and renovating a standard office facility: In Progress
Conducting Feasibility Studies: Completed
Generating part of the startup capital from the founder: Completed
Applications for Loan from our Bankers: In Progress
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents: In Progress
Design of The Company’s Logo: Completed
Printing of Promotional Materials: Completed
Recruitment of employees: In Progress
Purchase of the needed hardware and software storage facility, internet server, computers / laptops, furniture, office equipment, electronic appliances and facility facelift: In progress
Creating Official Website for the Company: In Progress
Creating Awareness for the business (Business PR): In Progress
Health and Safety and Fire Safety Arrangement: In Progress
Establishing business relationship with key players in the industry: In Progress

Sample Cloud Computing Business Plan Template

Here is a sample cloud computing business plan .

The world of information technology is vast with massive opportunities for investments.

One such area is cloud computing which is the practice of using a network of remote servers. These servers are hosted on the internet and used to process, store, and manage data.

Getting started requires strategizing or planning. Now, this might sound vague but it involves all the steps that need to be taken to establish your goal.

Here, we’ll be discussing the different types of services or niches available, as well as providing the basic framework to follow.

Type of Services

Every great business idea seeks to solve a problem by providing a wide range of services. These are tailored specifically to address the difficulties faced by consumers. For cloud computing, there are several types of services offered.

These range from cloud hosting services, cloud storage, software as a service (Saas) as well as cloud backup services among several others. Identifying the type of service(s) you intend to provide is crucial for success.

In other words, you’ll need to identify your area of specialization or competence in cloud computing as well as find how such benefits your target market.

What are the Types of Cloud Computing Services Needed by Individuals and Businesses?

To know who to provide your service to, you’ll first need to identify the types of cloud computing services needed by individuals and businesses. Individuals and businesses will form your client base.

Now, most cloud computing services needed by businesses and individuals revolve around public-private and hybrid. These are used for data storage as well as for the provision of a variety of services.

Choosing an Appropriate Revenue Model

In planning for your cloud computing business, it’s necessary to choose an appropriate revenue model. For this type of business, it’s best to choose a subscription-based revenue model.

Through this, value is added to your chain of cloud computing services as you’re able to help clients identify the types of cloud services they need.

Consider Partnerships

The Cloud computing business thrives well with partnerships. Without the right partnerships, limited progress is made.

Now, the types of partnerships most suitable for a cloud computing business are vendor partnerships and distributorships.

Experience has shown that there’s a divide between cloud vendors and managed service providers. This lack of channel support can be properly harnessed through proper partnerships with the right businesses.

Lead generation programs and marketing development funds are efficient channel support systems to leverage on.

Cloud Computing Business Plan Sample

This is one of the most essential tools you’ll ever need for your cloud computing business.

Within this document, a detailed strategy is laid out. This concerns the operational steps to be taken as well as measured goals to be achieved in the short, medium and long term range.

Key sections to be covered in detail within your cloud computing business plan should include the executive summary and company description sections. Others include products & services, market analysis, strategy & implementation, organization & management as well as financial plan & projection sections.

The full implementation of the contents of your cloud computing business plan is very important. No matter how well your plan is written, it only becomes as effective as its implementation.

In other words, your cloud computing business performs best when solid and effective plans are put into practice.

Adopt a Launch Strategy

Any cloud computing business that seeks to make real headway must adopt an effective launch strategy.

Here, valuable and strategic technology deployments must be used. One effective entry point to consider is security.

In considering the most effective launch strategy to adopt, it’s best to research the most viable options available. This will have to focus on the market or client needs with a bid to fill the demand by projecting the right message most appealingly.

Unique Selling Point

Every cloud computing business should have a unique selling point. Part of your preparations for launch should include the identification of your areas of strength.

In other words, you’re interested in finding particular aspects of this business you’re most competent in.

As information technology continues to find more areas of application, more opportunities are discovered in cloud computing which in turn results in increased competition.

With this approach, you’re able to get your fair share of the market.

Develop the Skills Necessary

Cloud computing is an interesting field with immense opportunities for skilled persons.

To tap into such opportunities, you’ll need to gain the skills necessary. However, this isn’t enough in itself. Constantly updating your knowledge with current trends and discoveries helps you stay or remain relevant.

As your cloud computing business grows, you’ll need to expand and upgrade your workforce. Infrastructure engineers will also need to be retrained on-the-job to handle innovations in cloud computing.

That way, your business can meet the demands of the market.

Innovation is Essential

Constant innovation through creativity helps you create cloud computing services that are relevant to your clients.

It’s important to have plans for a research and development department that constantly researches the best cloud computing solutions for the market.

Without excellent marketing, attracting your first and subsequent clients will be a mirage. The client quality you attract also matters. Therefore, effective marketing strategies must be adopted.

If you have no idea how to go about this, consider hiring a marketing expert to help you with the planning process.

With effective marketing, your cloud computing services are easily sold to your target market. The right message is passed across which in turn results in increased sales.

Putting together a cloud computing business plan can be challenging. However, this challenge can easily be tackled using the tips provided here. This article has offered several ideas on how to proceed with your business plan.

What more? Your business plan alone no matter how well written it is does not equate to a successful business. A lot of work is needed in the area of implementation to bring life to your plans.

For easy implementation, it’s best to ensure your cloud computing business plan is easy to comprehend and also implementable.

Cloud Computing Business Plan Template

Writing a successful business plan for your cloud computing business + template.

If you’re looking to start or grow a cloud computing business, you need a business plan. Your plan will outline your business goals and strategies, and how you plan on achieving them. It will also detail the amount of funding you need, and if needed, present a case to investors and lenders regarding why they should invest in your business.

In this article, we’ll explain why you should invest the time and energy into creating a cloud computing business plan, and provide you with a cloud computing business plan template that includes an overview of what should be included in each section.

Why Write a Business Plan For a Cloud Computing Business?

There are many reasons to write a business plan for a cloud computing company, even if you’re not looking for funding. A business plan can help you see potential pitfalls in your business strategy, as well as identify opportunities you may not have considered. It can also help you track your progress and adjust your plans as needed.

That said, if you are looking for funding, a business plan is essential. Investors and lenders want to see that you have a solid understanding of your industry, your customers, and your competition. They also want to know that you have a realistic view of your financial situation and how much money you’ll need to get started.

How To Write a Business Plan For a Cloud Computing Business

While every business plan is different, there are 10 essential components that all cloud computing business plans should include:

Executive Summary

Company description, industry analysis, customer analysis, competitor analysis, marketing plan, operations plan, management team, financial plan.

Keep in mind that you’ll need to tailor this information to your specific type of cloud computing business, but these 10 components should be included in every plan.

The executive summary is the first section of your business plan, but it’s often written last. This is because it provides an overview of the entire document.

In the executive summary, briefly explain what your business does, your business goals, and how you plan on achieving them. You should also include a brief overview of your financial situation, including how much money you’ll need to get started.

For organizational purposes, you could create headings for each main section of your business plan to highlight the key takeaways.

For example, your cloud computing executive summary might look something like this:

Company Overview

[Insert Company Introduction / Short Summary]

Business Goals

[Insert Business Goals & How You Plan To Achieve Them]

Industry Overview

[Insert Industry Statistics on the Size of Your Market]

Competition

[Insert Overview of Competitors & Your Competitive Advantage]

[Insert Information About The Marketing Strategies You Will Use To Attract Clients/Customers]

Financial Overview

You can add and/or remove sections as needed, but these are the basics that should be included in every executive summary.

The next section of your cloud computing business plan is the company description, where you’ll provide an overview of your business.

Include information about your:

Company History & Accomplishments To Date

Mission Statement and/or Company Values

With regards to the company overview, here you will document the type of cloud computing company you operate. For example, there are several types of cloud computing companies such as:

SaaS (Software as a Service)
PaaS (Platform as a Service)
IaaS (Infrastructure as a Service)

For example, a cloud computing company description might look something like this:

We are an X type of cloud computing company.

Company History

If an existing company: Since launching, our team has served X customers and generated $Y in revenue.

If startup: I conceived [company name] on this date. Since that time, we have developed the company logo, found potential space, etc.

This is just an example, but your company description should give potential investors a clear idea of who you are, what you do, and why you’re the best at what you do.

The next section of your business plan is the industry analysis. In this section, you’ll need to provide an overview of the industry you’re in, as well as any trends or changes that might impact your business.

Questions you will want to answer include:

What is the overall size of the cloud computing industry?
How is the industry growing or changing?
What are the major trends affecting the cloud computing industry?
Who are the major players in the cloud computing industry?

For example, your industry analysis might look something like this:

The size of the cloud computing industry is $XX billion.

It is currently growing at an annual rate of more than 20%.

This rapid development is being driven by the country’s strong economic growth, which is expected to continue in the coming years.

Major trends affecting the industry are the ever-growing popularity of social media platforms, the increase in online spend by consumers, and the continued growth of the e-commerce industry.

How We Fit Into The Industry

This is just an example, but your industry analysis should give potential investors a clear idea of the overall industry, and how your company fits into that industry.

The next section of your cloud computing business plan is the customer analysis. In this section, you’ll need to provide an overview of who your target customers are and what their needs are.

Who are your target customers?
What are their needs?
How do they interact with your industry?
How do they make purchasing decisions?

You want a thorough understanding of your target customers to provide them with the best possible products and/or services. Oftentimes, you will want to include the specific demographics of your target market, such as age, gender, income, etc., but you’ll also want to highlight the psychographics, such as their interests, lifestyles, and values.

This information will help you better understand your target market and how to reach them.

For example, your customer analysis might look something like this:

Target Market & Demographics

The demographic (age, gender, location, income, etc.) profile of our target cloud computing customer is as follows:

– Age: 25-44

– Gender: Male/Female

– Location: United States

– Income: $50,000+

– Education: College

Psychographics

Our core customer interests are as follows:

– Technology: They are early adopters of new technology and trends

– Social Media: They use social media platforms regularly

– Business: They are small business owners or work in small businesses

– E-commerce: They are comfortable making purchases online

In summary, your customer analysis should give potential investors a clear idea of who your target market is and how you reach them.

The next section of your business plan is the competitor analysis. In this section, you’ll need to provide an overview of who your major competitors are and their strengths and weaknesses.

Who are your major competitors?
What are their strengths and weaknesses?
How do they compare to you?

You want to make sure that you have a clear understanding of your competition so that you can position yourself in the market. Creating a SWOT Analysis (strengths, weaknesses, opportunities, threats) for each of your major competitors helps you do this.

For example, your competitor analysis might look something like this:

Major Competitors

XYZ Company is our major competitor. Its offerings include this, this and this. Its strengths include XYZ, and its weaknesses include XYZ.

Competitive Advantage

Your competitor analysis should give potential lenders and investors a clear idea of who your major competitors are and how you compare to them.

The next section of your business plan is the marketing plan. In this section, you’ll need to provide an overview of your marketing strategy and how you plan on executing it.

Specifically, you will document your “4 Ps” as follows:

Products/Services : Here is where you’ll document your product/service offerings.
Price : Detail your pricing strategy here.
Place : Document where customers will find you and whether you will use distribution channels (e.g., partnerships) to reach them.
Promotion : Here you will document how you will reach your target customers. For instance, cloud computing businesses often reach new customers via promotional tactics including search engine optimization (SEO), search engine marketing (SEM), content marketing, influencer marketing, etc.

For example, your marketing plan might look something like this:

Products/Services

We offer the following products/services:

We will use a premium pricing strategy to establish ourselves as the highest quality brand.

We will serve customers directly and through a partnership with XYZ company.

As you can see, your marketing plan should give potential investors a clear idea of your marketing objectives, strategies, and tactics.

The next section of your business plan is the operations plan. In this section, you’ll need to provide an overview of your company’s day-to-day operations and how they will be structured.

What are your company’s daily operations?
How are your company’s operations structured?
Who is responsible for each task?

Your operations plan should be detailed and concise. You want to make sure that potential investors have a clear understanding of your company’s day-to-day operations and how they are structured.

You will also include information regarding your long-term goals for your operations and how you plan on achieving them.

For example, your operations plan might look something like this:

Daily Operations

Our company’s daily operations include XYZ.

Operational Structure

Our company is structured as follows:

Department 1
Department 2
Department 3

Each department is responsible for XYZ tasks.

Long-Term Goals

Our long-term goals for our operations are to achieve the following over the next five years.

Date 1: Goal 1

Date 2: Goal 2

Date 3: Goal 3

Date 4: Goal 4

Your operations plan should give readers a clear idea of your company’s day-to-day operations, how they are structured, and your long-term goals for the company.

The next section of your business plan is the management team. In this section, you’ll need to provide an overview of your management team and their experience.

Who is on your management team?
What are their qualifications?
What is their experience?

Your management team ideally includes individuals who are experts in their respective fields. You want to make sure that lenders and investors have a clear understanding of your management team’s qualifications and experience, and feel they can execute on your plan.

For example, your management team might look something like this:

Our management team is comprised of the following X individuals with the following experience.

Team Member 1:

Team member 1’s qualifications and experience include XYZ.

Team Member 2:

Your management team should give potential lenders and investors a clear idea of who is on your team and how their qualifications and experience will help your company succeed.

The final core section of your business plan is the financial plan. In this section, you’ll need to provide an overview of your company’s financials.

What are your company’s projected revenues?
What are your company’s projected expenses?
What is your company’s projected growth rate?
How much funding do you need and for what purposes? For example, most startup cloud computing businesses need outside funding for capital expenditures (CAPEX), such as servers, and working capital (OPEX), such as salaries.

Your financial plan should give potential investors a clear understanding of your company’s financials. While you may include a summary of this information in this section, you will include full financial statements in the appendix of your business plan.

For example, your financial plan might look something like this:

Our company’s projected revenues over the next five years are $XYZ.

Expenses & Net Income

Our company’s projected expenses and net income over the next five years are $XYZ.

Uses of Funding

This is just an example, but your financial plan should give potential investors a clear idea of your company’s financial projections.

The final section of your business plan is the appendix. In this section, you’ll need to provide any additional information that was not included in the previous sections.

This may include items such as:

Full financial statements
Resumes of key management team members
Letters of reference
Articles or press releases
Marketing materials
Product information
Any other relevant information

By including this information in the appendix, you are allowing potential investors and lenders to learn more about your company.

In summary, writing a cloud computing business plan is a vital step in the process of starting and/or growing your own business.

A business plan will give you a roadmap to follow. It can also help you attract investors and partners.

By following the tips outlined in this article, you can be sure that your business plan will be effective and help you achieve your goals.

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Craft a Cloud Strategy to Optimize Value

Maximize the benefits of the cloud with a strategy that clarifies the cloud’s role in delivering IT-driven business value.

Download the Gartner Cloud Strategy Roadmap

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Maximize the Benefits of Cloud Computing

Almost every organization uses cloud computing, but many do so without a documented strategy that answers what the organization does in the cloud and why. Without that, you won’t maximize the benefits of working in the cloud. The Gartner roadmap, equips CIOs to develop a concise cloud strategy document by following steps to:

Align objectives about the cloud
Develop a cloud action plan
Prepare the organization for execution
Establish governance and mitigate risk
Optimize and scale

Leverage Gartner’s Cloud Strategy Approach

A cloud strategy communicates “what” you are doing in the cloud and “why” you’re doing it. Gartner has tried and tested the following best practices for an effective strategy.

Make it a group effort
Establish baselines
Define cloud principles
Assess your current position
Avoid common mistakes

Craft the cloud strategy in partnership with leaders across the organization

The cloud strategy is a concise point of view on cloud computing and its role in your organization. It should be a short and living document of between 10 and 20 pages. It should work in conjunction with other strategic plans, starting with the organization’s midterm corporate strategic plan, as well as with related strategic plans for the data center, security, procurement and so on.

To effectively guide decisions, the cloud strategy requires support and sponsorship across the organization — including with stakeholders in business units, other technology departments and in functions such as operations, finance, legal and sourcing. Organizations that successfully craft a cross-discipline cloud strategy are more likely to succeed and realize full benefits with their cloud initiatives than those without one.

To formulate that cross-discipline strategy, start by forming a cloud strategy council with members from different teams who can share perspectives from across the organization. Most organizations build their councils to include a variety of IT and functional roles.

Each member of the council has a role to play in crafting the strategy and advocating for it, depending on where they sit in the organization. Procurement, legal and risk management, for example, can assess cloud transitions and highlight their implications. Human resources can help sell the transition to the workforce, and help identify and address cloud skills requirements. Finance can assess the financial implications of the cloud strategy and approve the savings and efficiencies.

These council members play a particularly important role helping to align the cloud strategy with existing strategies and other supporting elements of the business. Cloud computing doesn’t exist in a vacuum. The cloud strategy must align, and not contradict, with the strategies for security, data center, edge computing, and development and architecture, as well as for talent development.

Create baselines for cloud computing and the desired business outcomes

The cloud council should begin the strategy development process by establishing baselines for cloud computing and the business.

Cloud Computing Baseline and Terminology

Eliminate confusion by agreeing on cloud computing definitions and using them consistently. The U.S. National Institute of Standards and Technology (NIST) has created a set of definitions, as has Gartner. Newer cloud computing terms, such as cloud native, multicloud and distributed cloud, aren’t as well established. If you use them, clarify their meaning. In general, it’s better to use existing terms when you can.

Business Baseline and Goals

The business baselines refer to the top-level business strategy and desired business outcomes, as well as business transformation initiatives. Use annual reports, speeches by senior management and conversations with business leaders as sources.

Then highlight how cloud computing could benefit these outcomes or initiatives or put them at risk. Frame the discussion in terms of known business goals, such as cutting/cost-efficiency or agility/innovation, and assess the ways in which cloud computing can help achieve them.

Examine issues unique to your organization. For example, explore the following questions:

What is your business trying to accomplish in your industry and region?

Does your cloud strategy need to align with a data center strategy?

What extenuating circumstances exist?

How will the cloud strategy affect (or be affected by) uncertainties, such as the climate crisis or other similar events with far-reaching impacts?

Wrap up the baselines section by mapping business goals to the potential benefits of cloud computing and explaining how to overcome any possible challenges.

Explicitly state the principles that will guide your cloud strategy

Decide which principles you will use to make decisions related to cloud strategy and investments. Examples of common cloud principles include:

Cloud first

Buy before build (which, as related to the cloud, is often called “SaaS first”)

Best of breed

Being “cloud first” is often misunderstood. It doesn’t mean everything goes to the cloud. It means that when you want to renew, enhance or build something, the default approach is to use the public cloud. Cloud first also means you should consider the cloud as the first option for any new technology or business initiative.

You may want to include justification for a given principle. For example, if one of your principles is that “lift-and-shift migrations to the public cloud should be a last resort,” explain that they do not generally deliver significant value unless there is an extenuating circumstance — such as a data center closure requiring IT to find a home for things.

Your principles may also include any vendor-oriented considerations, such as positive relationships or investment in skills.

Other considerations that may play into your principles include:

Services Strategy

Your organization will need to decide when it will consume cloud services from a public cloud provider and when it will build — or continue to maintain — capabilities on-premises or elsewhere. Distinguish the use cases for infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS).

Address scenarios in which you may want to be a broker, and how to have a hybrid IT operating model in which you simultaneously consume services, act as an intermediary and provide services. Ask and answer the question, “How do we secure, manage and govern the hybrid environment?”

Financial Considerations

Cloud computing comes with significant financial implications, which IT leaders should understand and consider in their principles. Don’t believe the biggest myth about the cloud — that you always save money by moving to it. Instead, examine issues such as cost transparency, visibility, budgeting and predictability.

Organizations typically fund cloud computing from operating expenditure (opex) rather than capital expenditure (capex). However, changing everything to opex may change your organization’s financial profile. Also, IaaS is mainly aligned with hardware costs, so the prices have tended to go down slowly (inflation may be changing this), but SaaS operates as a subscription model that tends to go up. Having a cloud council member from finance can help you understand these implications and how they may influence your principles.

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Inventory your workloads so you have clear information to make decisions

Because your cloud strategy is workload by workload, you must inventory each workload (and the corresponding grouping of applications) and gather a set of information about them so you know what is already on the cloud and what is a good candidate to move to the cloud.

The types of information you want to gather in the inventory include, what is your goal for that workload? Is it to save money or is it to be more agile.

Gather some basic details, including:

What’s the name of the workload?

Who owns it?

Who authored it (if you wrote it in-house)?

Does it depend on other applications?

Is a vendor involved?

Is it a packaged application from a vendor?

If so, what do you need to know about that? (For example, if you’re on the last on-premises version from this vendor and you want to upgrade, do you have to go to its SaaS version?)

Is it virtualized?

What are the security, governance, compliance and data requirements?

Does it have personally identifiable information and security requirements?

Does it have special integration or location requirements?

What’s the goal: efficiency or agility?

Cloud Strategy Document Inventory Information for Each Workload

If a workload or application seems like a good candidate for the cloud, analyze performance characteristics along the following spectrum from unpredictable to well-behaved applications:

Unpredictable workloads. These are externally facing, and their demand is hard to predict, such as a website, a mobile app or an API gateway. These are generally good candidates for public cloud.

Well-behaved applications. These could be typical enterprise applications that are already virtualized and running efficiently in your data center. They don’t vary much and don’t have peak workloads. Such predictable workloads don’t typically benefit from cloud and aren’t the first choices to move.

In the middle. The middle of the spectrum includes workloads that have a peak for which you must overprovision. Assess the merits of moving such a workload to the cloud.

10 common pitfalls can limit the success of your cloud strategy

1. assuming it’s an it (only) strategy.

Involve cross-functional peers as equal partners in shaping the cloud strategy and governance. Cloud adoption will impact every function in the organization.

2. Not having an exit strategy

An exit strategy outlines considerations regarding extricating yourself from a cloud decision if you need to. Some regulators are mandating an exit strategy.

3. Combining or confusing a cloud strategy with a cloud implementation plan

Many organizations confuse a cloud strategy with a cloud implementation plan. A cloud strategy comes first and is where you document the role that cloud computing will play in your organization. A cloud implementation plan puts the cloud strategy into effect.

4. Believing it’s too late to devise a cloud strategy

Many organizations believe it’s too late to devise a cloud strategy if they’re already using cloud computing. But it’s better late than never to formally define the cloud’s role in your organization.

5. Equating a cloud strategy with “We’re moving everything to the cloud”

Having a cloud strategy doesn’t mean you are moving everything to the cloud. Many organizations assume this and avoid creating a strategy out of fear that they’ll be forced to use cloud computing for everything.

6. Saying “Our cloud strategy is our data center strategy” or “It’s all in or nothing”

Many organizations confuse their cloud strategy with their data center strategy, but the two should be separate.

7. Believing that an executive mandate is a strategy

Many organizations adopt cloud computing because the CEO, CIO or the head of a business unit believes that doing so will result in cost savings. However, cloud computing doesn’t always save money, and this objective alone shouldn’t form the basis of a cloud strategy.

8. Believing that being a <fill in vendor> shop means that is the cloud strategy

Organizations that consider themselves to be a <fill in your favorite vendor> shop may follow that vendor’s cloud offerings. But not only is this not a real strategy, it also doesn’t take into account the multiple types of cloud services, such as IaaS, PaaS and SaaS. If you take a broad view of cloud computing, it’s almost impossible to source all your cloud services from one vendor.

9. Outsourcing development of your cloud strategy

Outsourcing your cloud strategy may sound attractive, but don’t do it. Devise your own cloud strategy to align it with your organization’s strategic plans.

10. Saying “Our strategy is cloud first” is the entire cloud strategy

Cloud first is an excellent principle for many organizations within the overall strategy, which is broader.

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Cloud Computing Business Plan

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Resources On Cloud Computing

Financial Model
Value Proposition
One-Page Business Plan
SWOT Analysis
Business Model
Description

Executive Summary

Products & services, market analysis, marketing plan.

Management Plan
Financial Plan

Traditionally, businesses have had to invest heavily in hardware and infrastructure to meet their computing needs. This upfront investment can be a significant burden for businesses, especially those that are just starting out or those that do not have predictable usage patterns. In addition, maintaining and upgrading hardware and software can be time-consuming and expensive.

CloudGenius addresses these problems by offering a pay-as-you-go cloud computing model that eliminates the need for upfront investments. By only paying for the actual computing resources used, businesses are able to save on costs and increase flexibility. This model also ensures that businesses always have access to up-to-date and secure systems without having to spend time and resources on maintenance and upgrades. With this approach, CloudGenius fills an identifiable need in the market for flexible and cost-effective computing solutions.

CloudGenius offers a pay-as-you-go model for accessing computing resources, solving the problem of upfront investment in expensive hardware and infrastructure. This model allows businesses to only pay for the amount of computing resources they actually use, resulting in more flexibility and cost savings. Our cloud computing services ensure that systems are always up-to-date and secure, providing businesses with a reliable and efficient solution for their computing needs. With our value proposition of providing a cost-effective and flexible computing solution, CloudGenius is poised to become a leading provider of cloud computing services in the US market.

Target Market

Competition.

The cloud computing market in the US is highly competitive, with both established players and new entrants vying for market share. Some of the current alternatives or substitutes in the market that CloudGenius will be competing against include:

Amazon Web Services (AWS): A leading cloud computing provider offering a wide range of services and pricing options.
Microsoft Azure: Another major player in the cloud computing market, with a focus on integration with Microsoft's software offerings.
Google Cloud Platform: A newcomer to the market, but rapidly gaining ground with competitive pricing and services.
IBM Cloud: A long-standing player in the enterprise software market, with an extensive suite of cloud offerings.

While the competition is fierce, CloudGenius will differentiate itself through its focus on a pay-as-you-go model that is both flexible and cost-effective for businesses. The company's commitment to up-to-date and secure systems will also be a key selling point for skeptical customers.

Financial Summary

Here are the key highlights of the financial plan for CloudGenius:

The company aims to generate revenue of $10 million in the first year of operations.
The cost structure will consist of infrastructure and maintenance costs, employee salaries and benefits, and marketing and sales expenses.
The funding required to cover initial infrastructure and operational costs, as well as marketing and sales expenses, is $5 million.
The business plan forecasts that the company will achieve profitability within two years of operations.
The pay-as-you-go model will provide the company with a steady revenue stream as businesses pay for the actual computing resources they use.
Efforts to optimize pricing and service offerings will help ensure the company remains competitive in the market.

Funding Requirements

The Cloud Computing Business Plan startup, CloudGenius, requires funding of $5 million to cover initial infrastructure and operational costs, as well as marketing and sales expenses. The funding will be obtained through venture capital and private equity investments.

The breakdown of funding requirements is as follows:

$3 million for cloud infrastructure setup and maintenance costs
$1 million for employee salaries and benefits
$500,000 for marketing and sales expenses
$500,000 for contingency funds

The funds will be utilized to establish a strong customer base and to become one of the leading cloud computing providers in the US market. With the pay-as-you-go model and commitment to up-to-date and secure systems, CloudGenius is poised to become a successful and profitable business in the cloud computing industry.

Milestones and Traction

As a new entrant in the cloud computing market, CloudGenius aims to achieve a substantial footing in the US market within the next five years. With a comprehensive business plan and a solid team, the company is poised to hit the following milestones:

CloudGenius will monitor its progress regularly and adjust its strategies as necessary to ensure success. The company is committed to delivering the best customer experience and building trust through its reliable and secure cloud computing services.

Problem Worth Solving

Traditional computing solutions require businesses to invest in expensive hardware and infrastructure upfront, which can be a significant financial burden. Additionally, purchasing and maintaining these resources can be time-consuming and complex, requiring technical expertise and ongoing maintenance. As a result, many businesses struggle to keep their computing resources up-to-date and secure, which can lead to downtime, data breaches, and lost productivity. The pay-as-you-go cloud computing model offered by CloudGenius solves these problems by allowing businesses to access computing resources on an as-needed basis without making upfront investments and by providing up-to-date and secure systems, resulting in greater flexibility and cost savings.

Our Solution

CloudGenius offers a pay-as-you-go model for businesses to access computing resources on an as-needed basis without investing in expensive hardware and infrastructure upfront. Our cloud computing solutions provide businesses with more flexibility and cost savings while also ensuring that systems are always up-to-date and secure.

With our cloud computing services, our customers will be able to scale up or down their usage according to their changing requirements, resulting in more flexibility and cost savings. This alleviates the problem that businesses face when they have to invest a large amount of money upfront for hardware and infrastructure that may become outdated quickly.

CloudGenius provides businesses with a value proposition that includes a pay-as-you-go cloud computing model. This allows businesses to only pay for the computing resources they use, making it a cost-effective solution that can adapt to their changing needs. Our cloud infrastructure and technical expertise will ensure that our customers' systems are always up-to-date and secure, eliminating any worries about regular maintenance and security concerns.

In summary, CloudGenius provides a solution to the problem that businesses face when they need to invest a large amount upfront in hardware and infrastructure. Our pay-as-you-go cloud computing model offers businesses flexibility, cost savings, and security, making it a highly sought-after solution in the US market.

Validation of Problem and Solution

Product overview.

CloudGenius will offer a pay-as-you-go cloud computing model that allows businesses to access computing resources on an as-needed basis without investing in expensive hardware and infrastructure upfront. This model will provide businesses with more flexibility and cost savings while also ensuring that systems are always up-to-date and secure.

Our product is designed for businesses seeking flexible and cost-effective computing solutions. With our pay-as-you-go cloud computing model, businesses can only pay for the amount of computing resources they actually use, avoiding upfront investments, and easily scale usage according to their changing requirements.

The benefits our customers will experience include more predictable IT costs, increased productivity, and improved data security. By taking advantage of our cloud infrastructure and technical expertise, businesses will have access to up-to-date and secure systems that can help them achieve their digital transformation goals.

The cloud computing market is highly competitive, with many established players dominating the industry. Some of the major competitors of CloudGenius include Amazon Web Services, Microsoft Azure, and Google Cloud Platform, among others.

However, CloudGenius stands out from its competitors in several ways. Firstly, its pay-as-you-go model allows businesses to easily scale up or down their usage without any upfront investments, providing them with more flexibility and cost savings. Secondly, CloudGenius is committed to maintaining up-to-date and secure systems, ensuring that its customers' data is always protected. Finally, CloudGenius will offer a wider variety of services and lower prices as it leverages economies of scale.

Roadmap: Products & Services

As CloudGenius establishes itself in the US market, we have taken several steps to ensure that we provide the best products and services for our customers. So far, we have:

Our roadmap for the upcoming stages of business development includes:

Expanding our customer base by targeting new segments and industries
Offering additional services and features based on customer feedback and emerging technologies
Enhancing our technology and infrastructure to improve performance, security, and reliability
Building strategic partnerships with key players in the cloud computing industry
Continuing to invest in marketing and advertising initiatives to increase brand awareness and visibility

Through these efforts, CloudGenius aims to become a leader in the cloud computing market in the US and beyond, providing flexible, cost-effective, and innovative solutions to businesses of all sizes.

Market Segmentation

Market segmentation is crucial for any business, and cloud computing is no exception. Potential groups of customers can be separated by specific characteristics that help identify their needs and preferences. The following HTML table shows some examples:

By focusing on these segments, our business can create tailored marketing campaigns, pricing strategies, and customer support services that meet the specific needs of each group. This can help us increase our market share and revenue while improving customer satisfaction and loyalty.

Target Market Segment Strategy

Our ideal customer segment includes businesses that need flexible and cost-effective computing solutions. These customers prioritize scalability and agility, and value the ability to only pay for the computing resources they use. They are typically small to medium-sized businesses that operate in a variety of industries, including but not limited to ecommerce, healthcare, and finance.

We will target this segment through online marketing campaigns and outreach to business communities and industry associations. We will also work with our partners to identify potential customers and collaborate with them to provide customized solutions that meet their specific needs.

Key Customers

Our ideal customer archetype is a mid-sized business in the technology, finance, or healthcare industry looking for a cost-effective and flexible cloud computing solution. They value scalability and only paying for the resources they use, while also prioritizing security and up-to-date systems. They are open to using online platforms for self-service or having a dedicated account manager for more personalized support. Ultimately, they will become our main advocates for our business by recommending us to their network and continuously utilizing our services.

Future Markets

Based on the market analysis, the potential market for pay-as-you-go cloud computing is vast and continuously growing. As more businesses look for flexible and cost-effective computing solutions, our business strategy of offering an easily scalable, up-to-date, and secure system with optimized pricing and a wider variety of services will position us to capture a significant share of the market. Additionally, we plan to expand our services and target new customer segments, such as small and medium-sized enterprises, to further tap into the future potential market.

As the demand for cloud computing services continues to rise, the market has become increasingly competitive. The following table outlines some potential competitors in the industry:

Our business will differentiate ourselves from the competition by offering a simple and transparent pay-as-you-go pricing model, along with excellent customer support and a focus on keeping our systems updated and secure.

Marketing and Sales Plan

Our marketing plan will focus on reaching out to businesses in need of flexible and cost-effective computing solutions. Our advertising strategy will include online ads and targeted email campaigns, as well as attending industry conferences and events. Our goal is to establish ourselves as a trusted provider of cloud computing services and become the go-to solution for businesses looking to save on infrastructure costs. We estimate our marketing and advertising costs to be around $50,000 for the first year.

Location and Facilities

CloudGenius will utilize cutting-edge cloud infrastructure technology to offer businesses flexible and cost-effective computing solutions. Our pay-as-you-go model will enable businesses to access computing resources on an as-needed basis, without the need to invest in expensive hardware and infrastructure upfront. This technology will allow us to provide our customers with more flexibility and cost savings, while also ensuring that our systems are always up-to-date and secure.

In addition to our cloud infrastructure, our technical expertise will be a key resource in delivering top-quality service to our clients. Our team of experts will constantly monitor and optimize our systems, ensuring that our customers always receive the best possible service. We will also invest in the latest security technology to maintain the highest level of security for our clients' data.

Overall, CloudGenius will leverage the latest technology to deliver a superior cloud computing experience to businesses of all sizes. Our commitment to innovation and cutting-edge technology will ensure our success in the US market.

Equipment and Tools

Our marketing and sales plan requires us to have the proper equipment and tools to effectively promote and sell our cloud computing solutions to potential customers. Below is an outline of the required equipment or tools and the associated costs:

By ensuring that we have the necessary equipment and tools, we can effectively reach potential customers and generate leads that can ultimately lead to increased revenue for our business. With the pay-as-you-go cloud computing model, we are confident that we can provide flexible and cost-effective computing solutions that will meet the needs of our customers.

Management and Organization

Organizational structure.

Our Cloud Computing Business Plan follows a flat organizational structure, which promotes communication and collaboration among employees. The following HTML table outlines the different roles and responsibilities of our team members, as well as the flow of information between levels of the organization:

Our flat organizational structure ensures that communication channels remain open and that all employees can contribute to the company's success and growth.

Management Team

Management team gaps, personnel plan.

Running a cloud computing business successfully requires dedicated and skilled personnel. The following HTML table shows the potential positions that we expect to require:

Company History and Ownership

CloudGenius is a cloud computing startup founded in 2023 by a team of experienced business consultants and technology experts. The founders recognized the growing demand for flexible and cost-effective computing solutions from businesses of all sizes and decided to offer a pay-as-you-go model that allows businesses to access computing resources on an as-needed basis.

The company is a privately held corporation, with the founding team owning the majority of the shares. We are committed to maintaining a transparent and accountable corporate structure, and we will be hiring a qualified CFO to oversee our financial operations and ensure compliance with regulatory requirements.

At CloudGenius, we believe that innovation is the key to success in the fast-paced and competitive cloud computing market. That's why we are constantly exploring new technologies and business models to offer our customers the best possible value and service. Our team consists of highly skilled professionals with years of experience in cloud infrastructure, software development, and business management.

As we embark on this exciting journey, we are confident in our ability to establish CloudGenius as a leading provider of cloud computing services in the US market. We look forward to working with our customers, partners, and investors to achieve our goals and create a better future for everyone.

As part of our management and organization plan, we have developed a detailed roadmap in an HTML table format that outlines specific goals and objectives that we plan to achieve in order to manage and steer our cloud computing business. Our milestones include:

These milestones will guide our business strategy and ensure that we are staying on track to achieve our goals and objectives. We will monitor our progress and make adjustments as necessary to ensure our success in the cloud computing market.

Key Metrics

As a cloud computing business, it is crucial to constantly monitor and analyze key performance indicators (KPIs) that determine the overall performance and health of our business. Some of the KPIs that we will be tracking include:

Revenue growth rate
Customer acquisition and retention rates
Usage and adoption rates
Costs of infrastructure and maintenance
Employee productivity and retention rates

By measuring and analyzing these KPIs on a regular basis, we can make data-driven decisions and take actions to improve the performance and success of our business.

Financial Plan and Metrics

Sales forecast.

Below is the projected sales for CloudGenius for the years 2023, 2024, and 2025. The sales forecast is broken down by product categories with the Total at the bottom, while all the rest of the columns are for the years:

Note: The sales forecast is based on market research, industry trends, and competitor analysis.

Starting and operating a cloud computing business require both initial and ongoing expenses. The following tables outline the expected or incurred costs:

Startup Costs

Operational expenses.

These costs are subject to change depending on the growth and needs of the business. Regular reviews of the financial plan and metrics will be conducted to ensure the business remains profitable and sustainable.

Projected Profit and Loss

CloudGenius aims to generate revenue of $10 million in the first year of operations and achieve profitability within two years. The following table presents the projected profit and loss statement for the years 2023, 2024, and 2025:

CloudGenius expects to achieve profitability by its second year of operation, with a profit margin increasing from 5% in the first year to 10% by the third year. By effectively managing its costs while steadily growing its customer base, CloudGenius is confident in its ability to achieve its financial goals and become a leading provider of cloud computing services in the US market.

Projected Cash Flow

Here is a table showing the projected cash flow for CloudGenius over the first three years of operations:

These projections are based on our assumptions about customer adoption rates, market demand, and cost structure. We anticipate that our revenue streams will continue to grow as we expand our customer base and optimize our pricing and service offerings.

Projected Balance Sheet

Below is the projected balance sheet statement for the next three years, from 2023 to 2025:

As our business grows, we anticipate a steady increase in assets, liabilities, and equity. We plan to manage our financials carefully to maintain a healthy balance sheet while investing in our infrastructure and expanding our customer base.

Our personnel plan consists of hiring a team of experienced cloud infrastructure and technical experts who will oversee the maintenance and security of our systems. We will also hire sales representatives to promote our services and account managers to provide customer support when needed.

The compensation for our employees will be competitive and based on their experience and qualifications. We will offer benefits such as health insurance, retirement plans, and paid time off. Our employees will play a crucial role in our business operations by ensuring that our systems are up-to-date and secure, and by providing excellent customer service to our clients.

Use of Funds

CloudGenius will seek funding of $5 million in venture capital and private equity investments to cover initial infrastructure and operational costs, marketing and sales expenses in the first year of operations. The funds will be allocated as shown in the table below:

The use of funds table is meant to provide clear information for investors and lenders on how the company plans to allocate the funds received and how they will contribute to achieving the financial goals.

Exit Strategy

Our long-term goal is to establish ourselves as a leading provider of cloud computing services and eventually become an acquisition target for a larger technology company. Alternatively, we may consider selling the business to a competitor or passing it along to a family member or trusted employee. Our exit strategy will be driven by market and industry trends, as well as the needs of our customers and stakeholders.

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Announcements , Cost Management , Management and Governance

FOCUS: A new specification for cloud cost transparency

By Michael Flanakin Principal Product Manager, Microsoft Cost Management

Posted on October 26, 2023 6 min read

When it comes to FinOps, the data is of the upmost importance. Data is the key to understanding your cloud cost and usage patterns, and pivotal to making smart decisions about your cloud strategy and operations. This is why Microsoft is proud to be a founding member of the FinOps Open Cost and Usage Specification (FOCUS) project and why we’re excited to add support in Cost Management after FOCUS 1.0 is available later this year. In the meantime, start preparing for FOCUS by familiarizing yourself with the current specification, joining the FOCUS community, and providing feedback on your use cases and needs.

What is FOCUS?

FOCUS is a groundbreaking initiative to define a common format for billing data that empowers organizations to better understand cost and usage patterns and optimize spending and performance across multiple cloud, SaaS, and even on-premises service offerings.

FOCUS will provide organizations with a consistent, clear, and accessible view of their cost data explicitly designed for FinOps needs such as allocation, analytics, monitoring, and optimization. As the new “language” of FinOps, FOCUS will enable practitioners to collaborate more efficiently and effectively with peers throughout the organization and even maximize transferability and onboarding for new team members, getting people up and running quicker. Paired with the FinOps Framework , practitioners will be armed with the tools needed to build a streamlined FinOps practice that maximizes the value of the cloud.

Why organizations need FOCUS

The variety and flexibility of Microsoft cloud services allows you to build amazing things while only paying for what you need, when you need it. And with this flexibility comes varying operational models where services are billed and can be tuned differently based on a variety of factors. When services are billed differently, their cost and usage data tends to differ as well, making it challenging to allocate, analyze, monitor, and optimize consistently. Of course, this goes beyond just Microsoft’s cloud services. Organizations often rely on software as a service (SaaS) products, licensed software, on-premises infrastructure, or even other clouds, exacerbating the problem with each provider sharing data in proprietary formats.

FOCUS solves this problem by establishing a provider and service agnostic data specification that addresses some of the biggest challenges organizations face in managing the value of their cloud investments—understanding and quantifying the business value of their spending. FOCUS will enable organizations to spend more time driving value and less struggling to understand data caused by inconsistencies between and unfamiliarity with different services and providers.

“ At Walmart, we spend a lot of our time not only normalizing data across different clouds, but we’re also constantly reacting to changing SKUs and services in areas like Storage, Compute, and AI/ML. One of the most significant outcomes of FOCUS isn’t just that we’re aiming to simplify and standardize on a common specification, it’s the conversations that are starting on best practices – How should we all think about amortization for committed and reserved instances? What are our standard values for service categories? It’s much more than just a conversation about a few fields. It’s a discussion that will help define best practices and standards for a cloud computing market that continues to expand into new areas like SaaS, IoT, and Gen AI. We’re discussing standards today that will be the foundation of how we talk about cost decades from now. It’s exciting. “—Tim O’Brien, Senior Director of Engineering, Cloud Cost Management at Walmart Global Tech.

Why Microsoft believes in FOCUS

But why would Microsoft want to join other cloud providers and SaaS vendors to promote a common billing data specification? Because consistent cloud billing promotes the innovation and experimentation that Azure is built to provide . Building and optimizing applications in Azure in an iterative way using modern architectures is easier when you clearly understand how you’re billed and can weigh cost equally amongst other business priorities in building those systems. Better collaboration between business, technical, and finance teams will make your organization more productive overall, which maps back to our core mission to empower every person and every organization on the planet to achieve more.

“At FinOps X 2022, when Udam Dewaraja first introduced the idea of the FinOps community and service providers joining forces to establish an open billing data specification, I was hooked but also somewhat skeptical about whether major cloud providers would be willing to engage and adopt this upcoming specification (and natively support the new dimensions and metrics). However, during the very first FOCUS meeting, Microsoft’s Cost Management team proved me wrong, and my skepticism quickly faded away!” —Irena Jurica, Solution Architect at CloudVane, Neos.

Widespread adoption of FOCUS will make allocating, analyzing, monitoring, and optimizing costs across providers as easy as using a single provider, enabling you to do more with less. FinOps skills become more portable than ever, and practitioners, vendors, and consultants will become more efficient and effective when moving to an organization that uses different clouds or SaaS products. Without having to spend time learning proprietary data formats, organizations can focus on value-added FinOps capabilities that help deliver real value.

Our adoption of FOCUS removes a barrier to cloud adoption and helps organizations make better data-driven decisions about their cloud use that translates to business value on top of the Microsoft cloud.

Getting started with FOCUS

The FOCUS 0.5 release was announced in June 2023 and introduced a standardized way to describe fundamental concepts which apply to any provider.

Resources are identified by a ResourceId and ResourceName and organized into their respective ServiceName and ServiceCategory . ServiceCategory enables you to organize your costs into a top-level set of categories consistent across cloud providers, which makes it especially interesting. You can also see additional details, like the Region a resource was deployed to, the PublisherName of the company who developed the service, and the ProviderName of the cloud where the service was used.

All charges include a ChargeType to describe what kind of charge it is (such as usage or purchase), the ChargePeriodStart and ChargePeriodEnd dates the charge applied to, and the applicable BilledCost and AmortizedCost amounts. This is one big deviation from the current Cost Management experiences: instead of pulling cost from separate actual (billed) and amortized cost datasets, with FOCUS, you can query all your data at once, which should speed up processing times and reduce storage size for anyone currently exporting both datasets.

All charges have BillingPeriodStart and BillingPeriodEnd dates, a BillingAccountId and BillingAccountName that links to the scope at which your invoices are generated, a SubAccountId and SubAccountName that indicates the lower-level subscription account where resources are managed, and an InvoiceIssuerName that indicates what organization you receive invoices from (such as Microsoft or a Microsoft partner). For anyone using Microsoft Customer Agreement, you may notice that the BillingAccountId is linked to your billing profile, since that’s where the invoice is generated. This will be an important distinction for Microsoft Cloud customers, given the different terminology. Similarly, SubAccountId is linked to your subscription, which will be a new cross-cloud term to familiarize yourself with for cost allocation and chargeback needs.

Of course, reading about FOCUS isn’t as good as working with the data. If you’d like to give FOCUS a test run, you can download a FOCUS sample Power BI report as part of the FinOps toolkit, an open source collection of reusable solutions to help you jump start your FinOps efforts.

You can also connect this report to your own data through the Cost Management connector for Power BI or by deploying a FinOps hub data pipeline .

For those interested in the data, you can also explore a small sample dataset along with a few other open datasets that can be used as part of your own data ingestion and cleanup efforts. For details, see the FinOps toolkit open data documentation .

And lastly, if you’re interested in converting your own data in FOCUS, you can also leverage either the Invoke-FinOpsSchemaTransform or ConvertTo-FinOpsSchema command from the FinOps toolkit PowerShell module. These commands allow you to convert small datasets to FOCUS using a familiar command line interface.

Looking forward to FOCUS 1.0

But this was only the beginning. We’re incredibly excited to be a part of the FinOps community and help lead the way forward as FOCUS nears the 1.0 milestone. The FOCUS 1.0 specification is being driven forward by squads of project members, working backwards from the perspective of FinOps practitioners’ use cases. Practitioners are defining the columns they need to perform consistent cost allocation, to manage commitment-based discounts effectively, define consistent unit cost metrics and key performance indicators (KPIs), and more. Squads are building out the specification based on their needs to define consistent usage, pricing, and cost metrics, as well as for consistent inclusion of credits, discounts, and prepaid cost elements.

FOCUS is an important step for our industry, and for the adoption of FinOps in organizations around the world. Microsoft is proud to serve on the FOCUS Steering Committee, and on the Governing Board and Technical Advisory Council of the FinOps Foundation. Join us to help make FOCUS a standard worldwide!

Let us know what you think. We’d love to hear your feedback about the specification itself and any expectations you might have regarding how you’d like to see us adopt FOCUS in Cost Management exports, APIs, and portal experiences. You can talk to your Microsoft field representative or join us in the FinOps Foundation Slack community . And if you’ll be at Microsoft Ignite in Seattle next month, we hope you’ll also join us at the Seattle FinOps Roadshow .

See you soon!

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Navigating Cloud Cost Complexity and Security

Navigating the interplay of cloud costs and security in a multi-cloud environment—some best practices for holistic success.

In the ever-evolving landscape of cloud computing, today’s leading enterprises are seeking ways to optimize their operations and enhance their security measures. Cloud costs and security are two critical aspects that every organization must carefully manage, and they are more closely intertwined than you might think.

Recent VMware research reveals that 95% of organizations believe multi-cloud architectures are critical for business success. At the same time, 76% of multi-cloud organizations report a need to improve control over their cloud expenses. It’s clear that organizations see multi-cloud as essential; however, many struggle with effectively managing cloud costs while protecting against security vulnerabilities.

Cloud Cost Challenges

Managing cloud costs and security in a cloud-native, multi-cloud environment presents specific challenges for organizations. One of the main problem organizations face is the lack of control in both cost and security management. This issue is particularly pronounced in multi-cloud deployments, where organizations utilize multiple cloud providers or combine on-premises environments with cloud resources. The complexity of managing and securing resources across diverse platforms exacerbates these challenges.

With cloud costs constantly shifting, and decision-making often decentralized in large organizations, visibility into expenses can often be complex. Rapid scalability is one of cloud computing’s major strengths, but it also makes it easy for IT staff to spin up services without considering the cost. Implementing a cloud cost management strategy can help an organization plan for future costs and consumption. Without proper cloud cost management, organizations can face unexpected spikes in costs, overpaying for unused resources, or even inadequate performance.

Cloud Costs and Security

Security attacks on cloud environments can have a broad impact on costs beyond resource consumption. For example, a successful breach can lead to data leaks, service disruptions, and customer distrust, all of which can impact an organization’s bottom line.

Today, crypto mining has become one of the common attacks in the cloud-native world. In this type of attack, malicious actors inject workloads into a cloud environment, with the sole purpose of mining resources to generate revenue. In addition, distributed denial-of-service (DDoS) attacks can also impact costs. DDoS attacks flood a website with traffic, causing it to use more resources and, consequently, incurring additional costs. In essence, any changes or attacks on a cloud environment can have a direct or indirect impact on costs.

Ultimately, security tools alone are not enough. Organizations need actionable solutions that help them not only collect data, but make sense of it and prioritize security measures effectively.

Best Practices for Managing Cloud Costs and Security

To address the lack of control organizations face from deploying tools and solutions that are specific to each cloud platform or environment, organizations must adopt a unified approach that works across all their cloud deployments.

Enterprises need a common framework that provides availability, resiliency, and security for modern applications with the ability to abstract connectivity, identity, and policy. Using tools such as Tanzu Service Mesh , can help simplify the connection, observation and protection of your applications across any runtime or cloud.

In addition, organizations should implement a state-driven environment by defining the desired state for their applications, including how they are built, deployed, and run. With a state-driven environment, organizations can maintain control over both cost and security while ensuring that applications are built efficiently, stay within budget, and adhere to security policies.

Shifting left and focusing on managing costs and security from the earliest stages of the development process can also unlock visibility for teams. By understanding the costs involved and applying security measures during the build phase, organizations can plan and control more effectively, thus avoiding cost spikes and security vulnerabilities.

At the end of the day, managing security vulnerabilities and cloud costs requires a holistic approach, taking into account the desired state management, proper policies and management frameworks, and a proactive mindset.

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Cloud Computing Business Plan [Sample Template]
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Cloud Computing Business Plan [Sample Template]

A Sample Cloud Computing Business Plan Template

2. Executive Summary

3. Our Products and Services

4. Our Mission and Vision Statement

5. Job Roles and Responsibilities

6. SWOT Analysis

7. MARKET ANALYSIS

8. Our Target Market

9. SALES AND MARKETING STRATEGY

10. Sales Forecast

11. Publicity and Advertising Strategy

12. Our Pricing Strategy

13. Startup Expenditure (Budget)

14. Sustainability and Expansion Strategy

How to Write a Cloud Computing Business Plan [Sample Template]

Why Start a Cloud Computing Business?

A Sample Cloud Computing Business Plan Template

2. Executive Summary

3. Our Products and Services

4. Our Mission and Vision Statement

5. Job Roles and Responsibilities

6. SWOT Analysis

7. MARKET ANALYSIS

8. Our Target Market

9. SALES AND MARKETING STRATEGY

10. Sales Forecast

11. Publicity and Advertising Strategy

12. Our Pricing Strategy

13. Startup Expenditure (Budget)

14. Sustainability and Expansion Strategy

More on Technology

Sample Cloud Computing Business Plan Template

Type of Services

What are the Types of Cloud Computing Services Needed by Individuals and Businesses?

Choosing an Appropriate Revenue Model

Consider Partnerships

Cloud Computing Business Plan Sample

Adopt a Launch Strategy

Unique Selling Point

Develop the Skills Necessary

Innovation is Essential

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Cloud Computing Business Plan Template

Why Write a Business Plan For a Cloud Computing Business?

How To Write a Business Plan For a Cloud Computing Business

Executive Summary

Company Overview

Business Goals

Industry Overview

Competition

Financial Overview

Mission Statement and/or Company Values

Company History

How We Fit Into The Industry

Target Market & Demographics

Psychographics

Major Competitors

Competitive Advantage

Products/Services

Daily Operations

Operational Structure

Long-Term Goals

Team Member 1:

Team Member 2:

Expenses & Net Income

Uses of Funding

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Craft a Cloud Strategy to Optimize Value

Download the Gartner Cloud Strategy Roadmap

Contact Information

Company/Organization Information

Maximize the Benefits of Cloud Computing

Leverage Gartner’s Cloud Strategy Approach

Craft the cloud strategy in partnership with leaders across the organization

Create baselines for cloud computing and the desired business outcomes

Cloud Computing Baseline and Terminology

Business Baseline and Goals

Explicitly state the principles that will guide your cloud strategy

Services Strategy