becoming a cloud service provider
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- IBM Telecommunications Industry Cloud Computing White PaperBecoming a cloud service provider:The evolution of communications service providers
- 2 Cloud computing for retail
- 3 IBM Telecommunications IndustryExecutive summary If they take these actions quickly, decisively and boldly,For communications service providers (CSPs), offering with a vendor partner serving a as a trusted advisor, theycloud-based services is the way forward for business expansion stand to reap maximum profit and business growth from thisand revenue growth. Millions of people are picking up new once-in-a-generation opportunity. However, they shouldapplications and services with enthusiasm, in both their not rush to market with an ill-defined approach or sit on thepersonal and professional lives. So, cloud-based services, sidelines too long before entering the game, because eitherwith their rapidly increasing adoption rates, offer CSPs a action could potentially render them unable to capitalize fullyonce-in-a-generation opportunity to extend the scope of on exploding demand.services they provide to create new value for customers anddrive growth for their organizations. CSPs are perfectly This paper examines ways that CSPs can take advantagepositioned to take advantage of existing strengths, relationships of cloud computing both internally, for their ownand their established asset base of networks, systems, processes operations and data centers, and externally, as a cost-effectiveand other resources to deliver these services and applications way to create, manage and monetize cloud-based servicesto business and consumers, using cloud technology and for their customers.business models. Cloud computing and CSPs: ExploitingThis market opportunity has tremendous potential. CSPs a once-in-a-generation opportunitythat transform themselves into cloud service providers Enterprises are rapidly embracing the incremental valuecould extend their presence well beyond the traditional that cloud services can bring, from both a business utilitycommunications industry market into the Information and and a cost perspective. And CSPs, with their unique assets,Communications Technology (ICT) industry and even systems and resources, can provide the types of servicesthe media and entertainment sector and business applications enterprises of all sizes are seeking, along with the performancespace a vastly larger market than what they are able to and reliability they expect. Additionally, if properly equippedpursue today. with the right new infrastructure to support a comprehensive cloud services operation, CSPs can effectively possess the scaleBut in an environment where competition is coming from and life cycle management capabilities these new services willall fronts, and not just traditional competitors, CSPs must ultimately require.make informed decisions about all aspects of this significantnew endeavor. Specifically, they must carefully define theirstrategic approach, assess potential vendors and the platformsthey offer and determine the market segments they shouldinitially pursue and the services with which to do so.
- 4This unprecedented opportunity for CSPs to expand business As CEOs of CSPs develop their strategies and begin towith cloud services requires tremendous operating dexterity. prepare their organizations for increasing complexity, theyCEOs in all industries acknowledge the increasing complexity also have a watchful eye on customer needs and new productbeing thrust upon them. The key to improving operational and service trends. It is clear to all that the on-demand serviceseffectiveness and efficiency in the face of this increasing model is only going to continue to gain in popularity andcomplexity is to simplify operations with new technologies acceptance as adoption rates and application revenues continueand architectures, such as those enabled by cloud computing, to climb. Accordingly, using business intelligence and analyticswhile simultaneously simplifying business processes. Those applications to understand customer needs and looking forwho seize the opportunity and drive toward a better, not just better ways to meet customer demand are paramount on thedifferent, operational infrastructure stand to benefit from minds of CSP CEOs, even more than CEOs from othersimplifying complexity and also lowering costs. As such, they industries, as seen in Figure 2.will be better positioned to expand their business and increaserevenues with improved profitability. We have recently seenthe most dexterous and sophisticated CSPs make significantmoves in this direction, and they are already beginning torealize the benefits (Figure 1). Figure 2. CEOs of CSPs recognize the need to better understand the needs of their customers and their desire for new products and services more so than other CEOs.Figure 1. The best-performing companies (standouts) seek simplificationas the top means by which their organizations will attempt to manageincreasing complexity. CSP CEOs identify simplification, more sothan CEOs from other industries, as the best means to manage increasingcomplexity.
- 5 IBM Telecommunications IndustryBecause they are large enterprises, CSPs can capitalize on cloud Demonstrated returns reveal themselves swiftly, and therecomputing in a number of ways: is great potential to improve future business outcomes. With the aid of a trusted advisor and technology partner, you can Internalandexternalcostandoperationalefficiency develop your cloud strategy and investments in such a way as benefits can accrue to the CSPs that elect to deploy cloud to reap benefits of cost and productivity gains in both your operations for services delivery to their employees, partners private (internal) cloud services launch and your public and customers. (external) services launch to customers. Cloudtechnologiesandthebusinessmodelstheyenable can help tremendously in both enhancing the operating There are ways to make the most of your internal private dexterity CSPs require and enabling better cost control. cloud infrastructure investments, including building out your Supportedbycloudtechnologies,aCSPsbusinessbecomes public cloud services environment. It is now possible for a CSP more agile and responsive, and the organization is better to offer a variety of cloud services rapidly and cost-effectively prepared to create, manage and monetize innovative with pay-as-you-go pricing and provide easy-to-use, secure, services. self-service portals where customers obtain, manage and pay Withaninfusionofbusinessintelligenceandanalytics for these cloud services. A cloud-based infrastructure simplifies solutions, CSPs can launch and manage smarter operations; lowers costs related to capital equipment, labor promotions and campaigns and make better-informed and energy; and enhances operating dexterity and agility. market segmentation decisions more quickly and with greater confidence. With the right strategic vision, architecture and cloud service management platform, CSPs can not only build a simpler and more flexible service operation, but they can also lower ongoing costs while more rapidly launching, delivering and managing differentiated services to all types of businesses and consumers.
- 6 Taking the right approach to cloud To create, deliver and manage communications services to customers efficiently and effectively, CSPs have built (and continue to maintain and enhance) extensive networks, support systems and sophisticated operating environments. As a result,
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