Welcome!

Mobile IoT Authors: Sematext Blog, Elizabeth White, Liz McMillan, Jnan Dash, Kevin Benedict

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
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buyers...
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...