|By Kapil Raval||
|July 25, 2011 02:15 PM EDT||
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.
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. 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.  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  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."  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?
- Mike Candsfield, F. (2010, June 16). Telecom's Central Role in Cloud Computing. Retrieved June 20, 2011, from Forrester.
- Forrester for HP. (n.d.). Communication as a Service for Midsize Businesses. Retrieved June 20, 2011, from hp.com.
- IDC. (2009, September 29). Cloud Computing 2010, An IDC Update, IDC Executive Telebriefing. Retrieved June 20, 2011, from cionet.com.
- Gartner. (2010, Jan 13). Retrieved June 20, 2011, from Gartner Newsroom.
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
May. 4, 2016 03:30 AM EDT Reads: 1,131
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
May. 4, 2016 03:00 AM EDT Reads: 777
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
May. 3, 2016 11:00 PM EDT Reads: 1,293
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
May. 3, 2016 11:00 PM EDT Reads: 1,210
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
May. 3, 2016 10:00 PM EDT Reads: 1,212
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
May. 3, 2016 10:00 PM EDT Reads: 1,324
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
May. 3, 2016 09:45 PM EDT Reads: 346
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
May. 3, 2016 08:45 PM EDT Reads: 1,284
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
May. 3, 2016 08:30 PM EDT Reads: 1,211
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
May. 3, 2016 08:00 PM EDT Reads: 1,057
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
May. 3, 2016 05:00 PM EDT Reads: 339
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...
May. 3, 2016 04:15 PM EDT Reads: 346
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
May. 3, 2016 03:15 PM EDT Reads: 1,188
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
May. 3, 2016 02:30 PM EDT Reads: 954
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
May. 3, 2016 12:30 PM EDT Reads: 1,179
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
May. 3, 2016 12:15 PM EDT Reads: 1,593
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services 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. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
May. 3, 2016 12:00 PM EDT Reads: 1,372
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
May. 3, 2016 09:45 AM EDT Reads: 1,460
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
May. 3, 2016 07:00 AM EDT Reads: 1,116
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 cloud...
May. 2, 2016 10:00 AM EDT Reads: 2,697