Click here to close now.

Welcome!

Wireless Authors: Pat Romanski, Liz McMillan, Carmen Gonzalez, Elizabeth White, Kevin Benedict

Related Topics: Cloud Expo, Microservices Journal

Cloud Expo: Article

Cloud Computing: Opportunities for Communication Service Providers

Cloud computing offers CSPs a great opportunity to regain an important role in delivering services to consumers

Cloud Computing is an evolution of existing technologies to deliver services to end users. Communication service providers have an early adopter opportunity to compete with new entrants, increase their bottom line and play a dominant role in delivering cloud services.

Service providers have seen many so-called next- generation technology waves in the last 15 years. Cloud computing, which was seen as a new fad, has passed the initial test. Cloud computing is for real and not a vague idea anymore. It helps drive down costs for IT organizations by making infrastructure more distributed, more efficient and massively scalable. It's being accepted by enterprises of different sizes as a smarter way to deliver services. The worldwide cloud computing market is growing fast. According to IDC, it will be a $148.8B market by 2014, of which the public cloud alone would be about $55.5B. Communication service providers (CSPs) have made a significant investment in technology, people and processes. They have customer knowledge and relationships. Public cloud computing offers a unique opportunity to CSPs to defend their hosting business and grow significantly by focusing on a much larger market than what they can do today. This article focuses on some of the areas where CSPs have an advantage over others to take the lead market share in public cloud computing.

The Connected World
We live in a world where we expect everything to happen instantly and in real-time. It's a connected world, where people expect personalized information anytime, using any access device, delivered instantly. Everyone expects information to be processed in real time. The connected world is now moving to an agile world. The days of batch processing are numbered, if you want to meet the expectations of your users or customers. The computer and network infrastructure need to be ready to respond to this new connected or real-time world.

Communication service providers (CSPs) understand this better than any other industry. From the very early days of telephony, customers always expected a dial tone when they picked up the phone. CPSs know how to ensure a dial-tone each and every time. CSPs understand and appreciate what it takes to deliver information instantly anywhere every time. They are used to designing, implementing, running and managing infrastructure that is always on. Traditional voice services could be classified as cloud services.

Now it's beyond just the dial-tone. Today, the enterprise that can deliver instantly what a customer/user expects has a competitive advantage. It's important for businesses to make sure that applications, infrastructure and processes in the back end are able to meet this expectation. Businesses need to be agile to capture opportunities presented in this instant-on world.

Cloud Computing
To address these market pressures, CIOs are looking for simplified and flexible architecture. This is where cloud computing makes sense. According to the National Institute of Standards and Technology (NIST), cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort.

Today the focus is shifting to service and away from infrastructure components that are getting virtualized, standardized and commoditized. Virtualization utilizes resources better. But an architecture built on disparate components in a virtualized world adds more complexity. As a result, converged infrastructure, based on industry standards, is the foundation for agile service delivery with reduced time to provision additional resources. IT neither has the time nor the budget to integrate different components and own up to the risk of integration, resulting in increased time-to-market.

With virtualization, the application is not tied to the IT infrastructure, resulting in flexibility that's needed to meet the requirements of the real-time world. The service can be delivered from a data center or from the network or a combination of the two, as long as it makes business sense and can meet user's service-level expectations.

Cloud computing is a natural evolution due to the convergence of IT delivery and network.[1] With cloud computing, networking is part of the shared resources. It plays an important role in making everything work in an instant-on manner. It needs to be based on open industry standards, not proprietary protocols, more so now than ever, to provide the required agility and flexibility at reduced operational costs.

Opportunities for Service Providers
The telecom industry understands the value proposition, technical and operational transformation required as well as the opportunities that exist with cloud computing. CSPs have a lot of intelligence about their subscribers, their preferences, the services they consume, how and when they consume, etc., which help them add more value in a personalized service delivery. CSPs have billing and mediation platforms to charge customers based on usage. Combine all these with their brand and CSPs can play a dominant role and increase their top line revenue, if they proactively embrace public cloud computing.

Today, CSPs provide network connectivity to enterprise and SMB customers. Cloud service is a natural extension to what they are already providing:

  • Cloud computing makes a lot of business sense for the SMB market, which is expected to adopt it sooner than the enterprise market. SMB is a price-sensitive market and normally doesn't carry a lot of legacy application infrastructure. It's a market that is more likely to adapt to a standard cloud offering with little or no customization. On the contrary, enterprise customers would look for a more customized cloud offering. In a global study conducted by Forrester for HP, more than 65% of SMB customers expressed an interest in getting call center as well as unified communication services as cloud services from CSPs. [2] This opens up a great opportunity for CSPs to target that market segment and deliver packaged cloud services (Compute as a Service and Communication as a Service).
  • Market adoption of cloud services is best suited for CSPs. The study done by the IDC [3] shows that top cloud services accepted by the market are collaboration applications, web-based applications, information security and back-up or archiving services. These are the areas where CSPs have core strength and have been delivering them as standalone or dedicated services.

The computing resources and applications remained mostly in data centers. CSPs have focused primarily on managing and supporting networks connecting data centers. Typically, the computing resources are managed separately. If a customer looked for a single point of contact, CSPs, in most cases, worked as sub-contractors to large IT and SI companies.

  • In the world of cloud computing, this situation is changed to the advantage of CSPs because of the flexibility of putting compute resources either in the data center or network, wherever it made business sense. Cloud computing helps CSPs add more value by delivering more than just connectivity and network support. They can compete better with traditional IT service providers, thereby improving the top line.
  • CSPs are better positioned to provide web-based application services. Network assets are important assets of service providers that, in the world of cloud computing, can manage and deliver quality of service to users. This will not only allow service providers to differentiate themselves but will maximize the value of their investment in the network and create a new revenue stream.
  • As the network becomes an important part of the overall service, and when some computing resources reside outside data centers and in the network, traditional IT service providers and SI companies will work more closely with CSPs to commit SLAs to their customers. IT service providers will look for ways to jointly go-to- market with CSPs because they play a key role in delivering SLAs.
  • Events (natural disasters, sports events, elections, civil unrest, etc.) drive a burst of network and application traffic. It's cost-effective for organizations to handle such bursts of application usage or increased traffic to their sites using cloud computing. CSPs are in the best position to set it up very quickly for a short period of time and then tear it down.
  • Enterprise and SMB customers will also experience an occasional increase in their computing needs that can be easily met by CSPs with cloud computing with a pay-per-use model, which is more cost-effective compared to permanently investing in the infrastructure to meet occasional peaks. This reduces Capex as well as Opex for businesses.

According to Gartner, "By 2012, 20% of all business will own no IT assets." [4] As CSPs play a central role in delivering quality service to customers, they have an opportunity to be a services broker for customers. They can become the CIO of many businesses and deliver applications (services) from multiple sources.

  • CSPs can offer Infrastructure as a Service (IaaS) to defend their hosting customers. They can differentiate themselves from other providers by ensuring service quality and by bundling IT service with communication services. CSPs are less likely to win the battle in this area mainly on price. The next logical step for CSPs is to start offering Platform as a Service (PaaS). But they will be able to meet the required margin targets with Software as a Service (SaaS), bundling services and ensuring service levels.

  • Some service providers are considering building a repository for health care data (storage cloud) fed wirelessly from monitoring devices, labs and other sources. The health care cloud would give secure access to doctors, clinics, hospitals, insurance companies and pharmacists. This is just one example of an early adopter working with HP in Asia.

CSPs can be trusted providers of network connectivity to cloud services providers. As we move some computing resources from the data center to the network, the network becomes a gateway to store, retrieve, process and analyze information. This increases network traffic with cloud and drives more bandwidth.

  • With content delivery solutions (CDN), CSPs can speed up the delivery of Web and cloud applications to employees, partners and customers. Combined with policy solutions, CSPs can do it more intelligently, i.e., not speed up everything but understand the content and take into account user privileges and adjust the acceleration of traffic.

CSPs can aggregate different types of services and content and deliver them as and when requested through a self-service portal to customers with required level of quality and personalization on any access device. They can also let consumers store their content in the cloud and allow them to access it on any device.

The traditional hosting business growth for CSPs is tapering off. Cloud computing (IaaS and SaaS) not only offsets this decline but fuels the overall growth for CSPs.

CSPs will improve efficiency and reduce their internal IT costs by deploying cloud, thereby improving the top line. They will also realize a positive business case for internal cloud deployment when it's coupled with revenue-generating GTM programs.

Cloud computing offers CSPs a great opportunity to regain an important role in delivering services to consumers as well as SMB and enterprise customers. The questions remain: Who will take the early adopter advantage with cloud computing and who will try to be early followers?

References

  1. Mike Candsfield, F. (2010, June 16). Telecom's Central Role in Cloud Computing. Retrieved June 20, 2011, from Forrester.
  2. Forrester for HP. (n.d.). Communication as a Service for Midsize Businesses. Retrieved June 20, 2011, from hp.com.
  3. IDC. (2009, September 29). Cloud Computing 2010, An IDC Update, IDC Executive Telebriefing. Retrieved June 20, 2011, from cionet.com.
  4. Gartner. (2010, Jan 13). Retrieved June 20, 2011, from Gartner Newsroom.

More Stories By Kapil Raval

Kapil Raval is an experienced technology solutions consultant with nearly 20 years of experience in the telecom industry. He thinks ‘the business’ and focuses on linking business challenges to technology solutions. He currently works for HP and drives strategic solutions in the telecom vertical.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and sim...
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud.
SYS-CON Events announced today that StorPool Storage will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. StorPool is distributed storage software that allows service providers, enterprises and other cloud builders to run data storage on standard x86 servers, instead of using expensive and inefficient storage arrays (SAN).
GENBAND has announced that SageNet is leveraging the Nuvia platform to deliver Unified Communications as a Service (UCaaS) to its large base of retail and enterprise customers. Nuvia’s cloud-based solution provides SageNet’s customers with a full suite of business communications and collaboration tools. Two large national SageNet retail customers have recently signed up to deploy the Nuvia platform and the company will continue to sell the service to new and existing customers. Nuvia’s capabilities include HD voice, video, multimedia messaging, mobility, conferencing, Web collaboration, deskt...
SYS-CON Events announced today that Site24x7, the cloud infrastructure monitoring service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Site24x7 is a cloud infrastructure monitoring service that helps monitor the uptime and performance of websites, online applications, servers, mobile websites and custom APIs. The monitoring is done from 50+ locations across the world and from various wireless carriers, thus providing a global perspective of the end-user experience. Site24x7 supports monitoring H...
Sonus Networks introduced the Sonus WebRTC Services Solution, a virtualized Web Real-Time Communications (WebRTC) offer, purpose-built for the Cloud. The WebRTC Services Solution provides signaling from WebRTC-to-WebRTC applications and interworking from WebRTC-to-Session Initiation Protocol (SIP), delivering advanced real-time communications capabilities on mobile applications and on websites, which are accessible via a browser.
SYS-CON Events announced today that Intelligent Systems Services will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1994, Intelligent Systems Services Inc. is located near Washington, DC, with representatives and partners nationwide. ISS’s well-established track record is based on the continuous pursuit of excellence in designing, implementing and supporting nationwide clients’ mission-critical systems. ISS has completed many successful projects in Healthcare, Commercial, Manufacturing, ...
SYS-CON Events announced today that B2Cloud, a provider of enterprise resource planning software, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. B2cloud develops the software you need. They have the ideal tools to help you work with your clients. B2Cloud’s main solutions include AGIS – ERP, CLOHC, AGIS – Invoice, and IZUM
SYS-CON Events announced today that Tufin, the market-leading provider of Security Policy Orchestration Solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. As the market leader of Security Policy Orchestration, Tufin automates and accelerates network configuration changes while maintaining security and compliance. Tufin's award-winning Orchestration Suite™ gives IT organizations the power and agility to enforce security policy across complex, multi-vendor enterprise networks. With more than 1...
SYS-CON Events announced today that Cloudian, Inc., the leading provider of hybrid cloud storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cloudian, Inc., is a Foster City, California - based software company specializing in cloud storage software. The main product is Cloudian, an Amazon S3-compliant cloud object storage platform, the bedrock of cloud computing systems, that enables cloud service providers and enterprises to build reliable, affordable and scalable cloud storage solu...
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
Temasys has announced senior management additions to its team. Joining are David Holloway as Vice President of Commercial and Nadine Yap as Vice President of Product. Over the past 12 months Temasys has doubled in size as it adds new customers and expands the development of its Skylink platform. Skylink leads the charge to move WebRTC, traditionally seen as a desktop, browser based technology, to become a ubiquitous web communications technology on web and mobile, as well as Internet of Things compatible devices.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
“With easy-to-use SDKs for Atmel’s platforms, IoT developers can now reap the benefits of realtime communication, and bypass the security pitfalls and configuration complexities that put IoT deployments at risk,” said Todd Greene, founder & CEO of PubNub. PubNub will team with Atmel at CES 2015 to launch full SDK support for Atmel’s MCU, MPU, and Wireless SoC platforms. Atmel developers now have access to PubNub’s secure Publish/Subscribe messaging with guaranteed ¼ second latencies across PubNub’s 14 global points-of-presence. PubNub delivers secure communication through firewalls, proxy ser...
SYS-CON Events announced today that On the Avenue Marketing Group, a sales and marketing firm that utilizes events to market and sell products to consumers, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. On the Avenue Marketing Group (OTA) is a sales and marketing firm that utilizes events to market and sell products to consumers. On behalf of our clients, we attend thousands of fairs, festivals, expos, concerts, conferences, and sporting events annually, helping them reach millions of individuals ...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable older adults to live independent lives while staying connected to loved ones. M2M will continue to gr...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today that Ciqada will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Ciqada™ makes it easy to connect your products to the Internet. By integrating key components - hardware, servers, dashboards, and mobile apps - into an easy-to-use, configurable system, your products can quickly and securely join the internet of things. With remote monitoring, control, and alert messaging capability, you will meet your customers' needs of tomorrow - today! Ciqada. Let your products take flight. For more inform...