Welcome!

Mobile IoT Authors: Anders Påls, Scott Allen, Jason Bloomberg, Elizabeth White, Pat Romanski

Related Topics: @CloudExpo, Java IoT, Mobile IoT, Linux Containers, Containers Expo Blog, SDN Journal

@CloudExpo: Article

The Telco Cloud Opportunity

The emergence of cloud and intelligent networking are drivers of even more rapid change requirements

The cloud ecosystem for information technology today is an interesting mix of companies, products and solutions. Information Communications Technology (ICT) refers to the convergence and expansion of telecommunications with information processing and storage. In short, ICT and the cloud mean a combination of compute, storage and network, running a variety of applications.

These resources have been commonly located on premise by businesses, ranging from a few racks of equipment in a room for small businesses to football-field size facilities for large companies. Separately owned data center facilities, called Multi-tenant Data Centers (MTDC) enable organizations to augment on premise resources by placing equipment in a rented MTDC space without owning the facility.

Figure 1: The Cloud Ecosystem

The cloud business model changed these dynamics by adding a new source and business model for data center resources, available over the wide area network, on an on-demand basis. As the cloud brings added emphasis to both the access network and the inter-data center network, carriers have not only added their network expertise to the ecosystem but have also added cloud services.

The cloud Infrastructure as a Service (IaaS) market is dominated by a select number of global enterprises, with the market as a whole growing steadily since 2010. 451 Research market data shown in Figure 2 represents revenue from 53 IaaS vendors and 37 telcos, with the telcos accounting for 16 percent of the revenue ($207 million) in 2011. EMEA accounts for approximately 24 percent of the cloud market and has the same dominant cloud providers, although many local in-country cloud providers are emerging.

Figure 2: Total IaaS Market Forecast ($M)

The telco companies are clearly involved in the cloud, but are they positioned properly as the market continues to expand from IaaS and Content Delivery Networks (CDN) into software defined "everything" as a service? Given the opportunities outlined above, it's a good bet that the business strategy personnel at every carrier are hard at work exploring this question for strategies that best fit their organizations. The following strategic focal points across the organization might be useful to frame this business opportunity.

  • CEO - Grow through innovation. New on-demand services such as IaaS, Network as a Service (NaaS) and Network Function Virtualization (NFV) provide new ways to monetize and leverage physical network infrastructure. Telcos can expand the portfolio with new dynamic performance-on-demand billing options linked to applications and cloud services. Improved customer operation builds loyalty and reduces churn.
  • CFO - Monetization. The emergence of cloud forces more emphasis on developing on-demand network services. Telcos need to model this new business by including a customer and traffic forecast, capital and operation expense impact, new costs such as software licenses and a service revenue forecast. The resulting analysis needs to show a positive return on investment in a reasonable amount of time.
  • CTO/Operations - Intelligent network architecture. The cloud model means the communications infrastructure needs to change by offering better scalability, programmability and application awareness. The network, especially the access and inter-data center network, becomes an equal participant in cloud services with compute and store. Similar to how the World Wide Web browser unlocked the Internet, the service delivery network needs to be simplified to dramatically expand usability.
  • Sales/Marketing Go-to-Market - Performance-on-demand. Virtualizing the network infrastructure with software defined networking (SDN) enables efficient partitioning of resources to multiple users and accessing the right network capabilities for their applications. Application performance is now driven by policy with a network strategy enabling quick, efficient, and economical workload deployment. Cloud operations and workload orchestration can request and schedule network resources without understanding the network complexity. New solutions can be available combining cloud services and network for a premium service level agreement. New network services can drive the expansion of cloud use cases for workload mobility and fundamentally change ICT operations, which in turn will drive a broader base of service revenue.

Summary
Telcos have evolved services from fixed line telephony and business circuits to mobile, and to data and Internet services. The emergence of cloud and intelligent networking are drivers of even more rapid change requirements and offer an opportunity for telcos to take their place as an important market participant. The on-demand cloud network, SDN intelligence and the ability to virtualize network functions provide new technologies for the telcos that will mean change, yet is within their potential.

More Stories By Jim Morin

Jim Morin is a Product Line Director working in Ciena’s Industry Marketing segment. He is responsible for developing and communicating solutions and the business value for Ciena’s enterprise data center networking and cloud networking opportunities. Prior to joining Ciena in 2008 he held roles in business development and product management for several high technology storage and networking companies in Minneapolis.

Jim holds an MBA from the University of St. Thomas and a BA from the University of Notre Dame. He recently served on the Commission on the Leadership Opportunity in US Deployment of the Cloud (CLOUD2).

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 Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Avere delivers a more modern architectural approach to storage that doesn’t require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbuilding of data centers ...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
Silver Spring Networks, Inc. (NYSE: SSNI) extended its Internet of Things technology platform with performance enhancements to Gen5 – its fifth generation critical infrastructure networking platform. Already delivering nearly 23 million devices on five continents as one of the leading networking providers in the market, Silver Spring announced it is doubling the maximum speed of its Gen5 network to up to 2.4 Mbps, increasing computational performance by 10x, supporting simultaneous mesh communic...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...