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A cloud over telecoms

Ben Rossi | March 27, 2013
The last thing anybody needs is another story highlighting the benefits and challenges of implementing a cloud-based solution for their enterprise.

Furthermore, many globally successful cloud services that arose from small start-ups have a lean organisational structure that allows for quick decision making, short development cycles, and fast time-to-market.

"The breadth of service all of us experience and the speed of how they appear and also disappear are directly related to how start-ups operate," Krenn says. "Telecom operators typically struggle with heavy processes, which stretch TTM to periods of a year or more for launching new services."

But Faraidooni is adamant that this is not a threat to telcos, but rather an opportunity where the operator is providing value across the entire product chain of services.

"Telcos already provide services such as email, managed hosting and storage solutions to their enterprise customers," he says. "The evolution to cloud computing is expected to be a natural progression for them, as cloud computing is the delivery of on-demand resources such as software, application platforms and IT infrastructure services, through a shared network, enabling remote access to hosted software, applications and so on via the Internet."

With traditional hard-wired carrier telcos often possessing deep-rooted cultures and legacy systems that are challenged by the requirement of agility that cloud demands, many are now attempting to establish nimble business units, which are specifically set up to drive cloud innovation.

"Mobile providers are also looking at how to drive new data-orientated services, and tertiary revenue streams as voice connective revenues come under pressure," El Nadi adds.

Looking forward, it is safe to bet that telcos will continue to be a force to be reckoned with in the arena of cloud service providers.

While expectations may be high, and certain challenges must be overcome, with an existing and loyal base of customers, and relevant infrastructure in place, they are in place to stake claim to a sizeable portion of the cloud market share.

Cloud services will continue to contribute to operators positively by creating new consumer demands on connectivity, El Nadi concludes.

"Regional telcos are ideally positioned to deliver new cloud services and applications in a trusted way that drives adoption and enables new use cases that we never thought possible from disruption created by cloud and big data," he says.


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