Download - Cloud Computing: The Telco Opportunity

8/8/2019 Cloud Computing: The Telco Opportunity

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the way we see it

Cloud Computing

The Telco Opportunity

Telecom & Media InsightsIssue 57

Telecom, Media & Entertainment


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Contents

1 Abstract 1

2 Introduction 2

3 Market Dynamics 3

4 Telco Activity in Cloud Computing 5

Target Segment 5

Service O erings 6

Entry Strategy 7

5 Attractive Opportun ities or Telcos in Cloud Computing 8

Low Hanging Fruits 9

Phase 2 10

The Future 10

6 Recommendations 12

Service O erings 12

Service Delivery 13

Customer Segment 13


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Cloud computing is the latest technology trend in which IT in rastructure andso tware programs are accessed over the Internet or private networks. Cloudo erings can be largely categorized as So tware as a Service (SaaS), Plat orm as aService (PaaS), and In rastructure as a Service (IaaS) (see Figure 1). These servicesare delivered via three main models: public cloud 7, private cloud 8, and hybridcloud 9.

Enterprises o all sizes are being increasingly drawn to cloud computing. Bene tssuch as reduced IT costs, pay-per-use, better resource utilization, and elasticscalability are driving its uptake. The percentage o CIOs interested in cloudcomputing has grown rapidly rom 5% in 2009 to 37% in early 2010 10. The risinginterest in these services is driving increased enterprise spending, and as a result,cloud computing presents an attractive revenue potential or technology playersand telcos alike.

While the bene ts o cloud computing make it attractive or customers, concernssuch as data security, privacy, and compliance have slowed down the pace o adoption. For instance, strict privacy laws that place limits on the movemento in ormation beyond the borders o the European Union, have hindered theevolution o cloud computing in Europe.

Software applications running on aCloud infrastructure

Applications are accessible througha thin client interface such as webbrowser

Delivering storage, computing,monitoring and backup servicesfrom the cloud

Companies can manage their infrastructure remotely

SaaS Offerings

IaaS Offerings

Applicationruntime

environmentWeb serversDatabases

ApplicationsEnd-user applicationsavailable throughInternet

The Cloud

Stack of Cloud Services

Service Catalog,component library

Monitoring and management of: -- Services & Resources- Virtual servers (Virtualization)- Physical servers

(Datacenters)

VirtualInfrastructure

ApplicationDevelopmentEnvironment

Applications built using toolssupported by the provider

Clients have control over theapplication hosting environment

PaaS Offerings

Source: Capgemini TME Strategy Lab Analysis

7 Public cloud services are delivered to multiple customers from third party data centers over the Internet.8 Private cloud is deployed within an enterprise for its internal use.9 In a hybrid cloud model, some resources are provisioned and managed in-house while others are

delivered from the cloud.10 Harvard Business Review,What Were Watching in Cloud Computing , http://hbr.org/2010/06/what-

were-watching-in-cloud-computing/ar/1.

2 Introduction

Figure 1: Categorization o Cloud Computing O erings

A ter care ully weighing the bene ts and risks o cloud computing, severaloperators have advanced into this lucrative market. However, the key challengeahead or these operators is to di erentiate themselves in this highly competitivearena. In this paper, we take a close look at the cloud computing space, quali y theopportunity or telcos, and propose some recommendations around how operatorscan maximize the opportunity in this market.

Given the revenuepotential, telcos should notnot delay their entry in thecloud computing space


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Telecom, Media & Entertainment the way we see it

3Cloud Computing The Telco Opportunity

Worldwide IT cloud services revenues are expected to grow rapidly at a CAGR 11 o 26% rom 2009 to 2013 to reach US$44.2 billion. While SaaS will continueto contribute the highest to the overall revenue, its share is expected to decline,largely due to an increased enterprise ocus on IaaS (see Figure 2). The rapidgrowth o IaaS will be uelled by a keen interest rom businesses on curbing thehuge costs associated with IT in rastructure.

Several companies are competing aggressively to grab the largest share o thelucrative cloud computing market. These players all largely under one o thesethree categories: enablers, vendors, or service providers (see Figure 3). The role o some mature players, however, can also span a number o categories. For instance,both Cisco and IBM are cloud enablers as well as CSVs 12.

Source: Capgemini TME Strategy Lab Analysis; Forrester Research; Cloud Computing 2010, An IDC Update , September2009

11 Compound Annual Growth Rate.12 Cloud Service Vendors.

3 Market Dynamics

x% CAGR

69%

10%

21%

58%

13%

29%

21%

35%

37%

$17.4billion

$44.2billion

Figure 2: Worldwide IT Cloud Services Revenue (US$Bn) and Growth Rate by

Service Type


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Leading technology vendors such as Amazon, Sales orce.com, and Microso t haveestablished a rm ooting in this market and o er a range o services spanningSaaS, PaaS, and IaaS (see Figure 4). In terms o revenues, the current CSVlandscape is dominated by players such as Sales orce.com, Amazon, and Oracle.Sales orce.com, the leading provider o SaaS CRM13 solutions, reported revenueso over US$1billion14 in 2009, which is the highest amongst CSVs. The success o these leaders can be attributed to their technical prowess, early mover advantage,and the strong ocus on cloud computing.

Though large technology players have emerged as leaders in cloud computing,several smaller companies such as Rackspace and Netsuite are trying to carve theirniche. Telcos such as BT and AT&T have also entered this market. In the nextsection, we will evaluate the cloud computing initiatives and strategies o telcos.

13 Customer Relationship Management.14 Company Websites; Annual Report.


Source: Capgemini TME Strategy Lab Analysis; Company Websites

Service ProvidersCloud ServiceVendors (CSVs) Cloud Enablers

Provide cloud focusedbusiness consulting, andtechnology services such assystem integration, cloudmigration, and maintenance

Provide the actual cloudservices, spanning SaaS,PaaS and IaaS, to customers

Provide the technology,infrastructure , platforms, andmiddleware to enable theprovision of cloud services

Examples Software (SaaS)Application

DevelopmentPlatform (PaaS)

Servers Storage

Oracle on Demand Cisco Webex Salesforce CRM IBM Lotus Live Salesforce Force.com Google App Engine Microsoft Azure Amazon Web Services BT Orange Business Services AT&T GoGrid Rackspace

EMC MozyEnterprise Nirvanix CloudNAS

Figure 3: Stakeholders in the Cloud Computing Ecosystem

Figure 4: Enterprise Cloud O erings o Select Vendors


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Compared to market leaders such as Amazon and Sales orce.com, telco entryinto cloud computing has been reasonably late. While Sales orce.com startedo ering services in 1999, BT and T-Systems, one o the earliest telcos to o er cloudsolutions, entered only in the 2003 to 2004 time rame (see Figure 5). Despite thelate start, several telcos such as BT, AT&T, and Verizon are competing aggressivelywith market leaders to establish a strong oothold. The majority o operators havetaken the role o a CSV while a ew such as Verizon also act as service providers.This section presents an overview o key telco strategies in cloud computing.

Target SegmentThe cloud computing o erings o most telcos are targeted towards the enterprisesegment. Enterprises and governments spend nearly US$2.4 trillion worldwide 15 on IT products and services, many o which can be delivered rom the cloud. Thishigh revenue potential makes the segment attractive or operators. Moreover, theconsumer cloud space is nascent and the revenue opportunities limited.

Within the enterprise segment telcos are aggressively targeting SMEs due tothe growing interest in this segment or cloud-delivered so tware. SME sharein overall cloud services revenue is expected to increase rom 25% to 40%between 2009 and 2015 16 . To bene t rom this opportunity, several telcos o erservices customized to ul ll SME needs. For instance, IT Plan rom Orange isa packaged SaaS solution o ering a suite o o ce productivity, messaging, andbusiness applications targeted at SMEs.

15 Forrester Research, The Evolution Of Cloud Computing Markets , July 6, 2010.16 Capgemini TME Strategy Lab Analysis; Analysis Mason,Seize the US$35.6 billion global market for

enterprise cloud services , June 2010.

4 Telco Activity in CloudComputing

Source: Capgemini TME Strategy Lab Analysis; Company WebsitesNote: Deutsche Telekom spun off from Zimory as an independent subsidiary in November 2007

2003-2004 2007-2008 2009-2010 Planned

SaaS

PaaS

IaaS

BT OpenOrchard

T-SystemsDynamicServices

TelstraT-Suite

NTT BizSecurity

TelefnicaAplicateca

AT&TSynapticHosting

DeutscheTelekomZimory*

Orange ITPlan

OrangeFlexibleComputing

VerizonComputing as aService

SK Telecom CloudComputing Platform

T-Systems (Database andMiddleware Environments)

BT VirtualData Center

AT&T SynapticStorage andCompute

AT&T

Telstra

Telecom Italia

TeliaSonera Business ClassCloud Services

NTT

Figure 5: Select Examples o Telco Foray into Cloud Computing

Several telcos haveentered the cloudcomputing market withIaaS as their agshipo ering and a strong ocuson the enterprise segment


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Service OfferingsTelco o erings in cloud computing are centered around IaaS and SaaS with limited

ocus on PaaS (see Figure 6). IaaS is the fagship o ering o most operators, andin general SaaS has taken a backseat compared to IaaS primarily because telcocapabilities and experiences are more aligned towards delivering IaaS.

In 2008, AT&T made its debut in IaaS with its Synaptic Hosting proposition. Sincethen, several leading operators such as BT (Virtual Data Center), Orange (FlexibleComputing), Verizon (Computing as a Service), and Deutsche Telekom (Zimory)have ollowed suit. In act, the current IaaS o erings o most operators are ascompetitive as those rom established players like Amazon and Rackspace. Overthe next ew years, all major telcos plan to ocus most on IaaS in order to addressthe growing enterprise demand or cloud in rastructure services.

Although IaaS has captured most o the operators attention, SaaS too has garneredsigni cant interest. Many telcos o er a host o SaaS applications, usually inpartnership with ISVs 17, or accomplishing a range o business tasks. For example,BT o ers multiple CRM solutions in partnership with Sales orce.com and Netsuite,NTT has recently launched a cloud-based security solution, and T-System deliversSAP rom the cloud. Communication and collaboration so tware such as hostedPBX18, messaging, email, con erencing, and team collaboration solutions are themainstay o SaaS o erings rom leading operators.

Telcos have traditionally stayed away rom PaaS, largely due to its unattractivenessboth in terms o revenue and demand, when compared to IaaS and SaaS. Apart

rom T-Systems, which o ers database and middleware environment to nearly30019 customers, ew operators have shown signi cant interest in this category.

In addition to SaaS, PaaS, and IaaS some telcos such as Verizon, Orange and BTalso o er pro essional services, helping customers identi y and migrate the rightapplications to the cloud.


Telcos SaaS IaaS PaaS

BT

Orange Business Services

Deutsche Telekom/T-Systems

TeliaSonera

Belgacom

Telefnica

AT&T (Planned)

Verizon Business

Telstra (Planned)

SK Telecom

NTT

Bharti Airtel

Tata Comm

Figure 6: Categorization o Cloud O erings rom Telcos

17 Independent Software Vendor.18 Private Branch Exchange.19 Forrester Research, Market Overview Of Cloud IT Services From Major Telcos , September 2009.


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Entry StrategyPartnership with technology players has been the oremost entry strategy o telcos in cloud computing. Operators have partnered with a range o vendors

rom hardware providers such as HP and Sun to virtualization specialists such as VMware and Citrix Systems. These partnerships have helped telcos signi cantlyreduce their time-to-market and minimize the risks associated with developingcomplex technical capabilities in-house.

In addition to partnerships, a ew operators have acquired technology companiesto leverage their expertise to launch cloud services. For instance, AT&T acquiredleading application services provider USInternetworking (USi) in 2006 or US$300million to develop capabilities in delivering on-demand services and managedenterprise so tware solutions. Similarly, telcos such as BT, Verizon and T-Systemsalso acquired companies to develop expertise in launching certain cloud services.


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Cloud computing presents several opportunities or telcos to pursue (seeFigure 7). Analysts estimate that by 2015, telcos will have a 23% 20 share in theoverall cloud services market.

Operator success in the cloud, however, will depend largely on selecting the rightchoice o services to launch. Telcos should consider a combination o actorssuch as the attractiveness 21 o a service, its complexity, and the expertise requiredto launch be ore determining the services to o er. Most importantly, operatorsshould ocus on those services or which they are well positioned to o er byleveraging their existing capabilities such as data center expertise, managedservice experience, and global ootprint. Based on this rationale, the most relevantcommercial opportunities or telcos can be categorized into three di erent servicebuckets: low hanging ruits, the next phase, and the uture (see Figure 8). In orderto make the most o these opportunities, telcos should launch these o erings in aphased manner, starting with the low hanging ruits rst.

20 Analysis Mason,Seize the US$35.6 billion global market for enterprise cloud services , June 2010.21 Service attractiveness is a combination of customer demand and revenue potential.

5 Attractive Opportunities forTelcos in Cloud Computing

Source: Capgemini TME Strategy Lab Analysis; Forrester, Future View: The New Tech Ecosystems of Cloud, CloudServices, And Cloud Computing , August 2008

SaaS

PaaS

I a a S

E n a

b l e m e n

t a n

d

P r o

f e s s

i o n a

l S e r v

i c e s Content Management

Communication and Collaboration

CRMERP SCM

Business Intelligence Digital Content Creation

Document ManagementBilling

Desktop Productivity

Cloud Universe

Compute on Demand

Storage on Demand

Hosting on Demand

Virtual Servers

Backup Services

Testing andDevelopment

Service Management

Network Assets

Application Development Environment

DatabaseApp Server

Integration Object Data Stores

Message Queues

Middleware

ConsultingDisaster Recovery

Security

Maintenance and Support

System Integration

Cloud Broker

Wholesale Capacity

White label Services

Figure 7: Universe o Potential Cloud Services


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In the subsequent subsections we will detail the three service buckets.

Low Hanging FruitsThese are the services which provide an immediate attractive opportunity or telcosand should be launched rst. Not only do these services have a high demand andrevenue potential but also existing telco strengths are well aligned to deliver themrapidly. Hosting on-demand, SaaS enablement, and storage and computing

on-demand all under this category.

Hosting on DemandTelcos are already pro cient at providing managed hosting services or enterprises.In collaboration with technology partners, operators can rapidly virtualize theirexisting data center in rastructure, without excessive cost overheads, to o er on-demand hosting. Some operators such as AT&T and Orange already provide thisservice. Service delivery through the cloud will not only result in the optimizationo telcos existing in rastructure, but also attract a large number o customersinterested in maximizing IT investment by migrating to the cloud. According toanalysts, when compared to traditional hosting, cloud hosting can help enterprisessave 50% in costs with an associated ten- old increase in capacity 22.

SaaS EnablementSaaS has the largest share o the cloud services market and its adoption withinenterprises, especially SMEs, is rising. Telcos which have not yet ventured intoSaaS can quickly establish a rm ooting by partnering with a wide range o ISVs 23 and leveraging their existing in rastructure to deliver diverse SaaS applications.In addition to gaining a substantial share o the large and increasing enterprisespending on SaaS, these telcos can also improve customer loyalty by o ering SaaSas a value added service.

22 nScaled, Slashing Costs and Driving Capacity for SaaS Providers , February 2009.23 Independent Software Vendors.24 Cloud Computing 2010, An IDC Update , September 2009; Capgemini TME Strategy Lab Analysis.25 Central Processing Unit.


Service Attractiveness

High

Low

T e

l c o

C a p a

b i l i t y

High Low

SaaS Enablement

Hosting onDemand

UnifiedCommunication

Storage andComputing on

Demand

WholesaleCapacity

The Next Phase

Low Hanging Fruits

Telcos can build on their first phaseservices to expand their portfolio of offerings

Telcos can also leverage their global IPbackbone to offer capacity as a service

These services have a highdemand from enterprises

Telcos already possess significantexpertise and assets required todeliver these services

Broker Approach

PaaS (ExposeNetwork

Functionality)

Cloud Billing

Future

These services require telcosto gain significant experiencein the cloud before launch

They can help telcosdifferentiate their cloudoffering

Cloud SecurityServices

Figure 8: Most Attractive Commercial Opportunities or Telcos in Cloud Computing

Hosting on-demand, SaaSenablement, storageand computing providean immediate attractiveopportunity or telcos


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Computing and Storage on DemandComputing, storage, and backup along with hosting constitute the bulk o US$5

billion24

IaaS market. Telcos already o ering on-demand hosting can cross-sellcomputing and storage through an integrated package. In addition to hosting,providing virtual CPU 25 instances (to meet the di erent computing needs o customers) and on-demand storage and backup will result in a comprehensive IaaSsolution. In order to deliver these additional services, existing data center resourcescan be easily leveraged, thereby, minimizing incremental costs.

Phase 2This phase includes the next line o services, which telcos should o er in order toexpand their port olio o cloud services and establish a stronger ooting. Operatorscan sell these services on top o their existing cloud proposition. Cloud securityservices, uni ed communication, and wholesale services all under this category.

Cloud Security ServicesIn terms o market share, telcos are one o the leading providers o managedsecurity services. They can quickly leverage their existing expertise in network,application, and data security to deliver these services rom the cloud. Cloudsecurity is an attractive market, which is set to rise by 200% 26 during the period

rom 2008 to 2013. Telcos can capitalize on this opportunity by di erentiatedo erings such as Distributed Denial o Service (DDoS) protection. Operators havean inherent advantage in this area because they can look across their backbonesand prevent potential attacks earlier than most other service providers.

Unified Communications (UC)Enterprise customers are interested more than ever in a common plat orm or all

their communications needs including IM27

, presence, voice, con erencing, andemail. The uni ed communications market is expected to rise at 55.6% CAGRto US$4.3 billion between 2008 and 2014 28, uelled by cloud computing. Telcosalready deliver individual communication services like messaging, VoIP 29, and PBXto enterprise customers. They can build on this experience to o er a uni ed userinter ace and experience across multiple devices.

Wholesale CapacityReliable network connectivity, which includes ast and secure connections romthe cloud data center to the customer premise, is imperative or the success o any cloud business. Telcos can o er capacity, over their global IP 30 backboneand private MPLS31 networks, as a service to both cloud service vendors andenterprises. In addition to capacity, large global operators can also white-label acomplete telco- ocused cloud in rastructure solution or regional operators.

The FutureTelcos should also think beyond traditional o erings and leverage the commercialopportunities presented by more novel services and delivery mechanisms such ascloud billing, PaaS, and the broker approach.

26 Gartner, Cloud-Based Computing Will Enable New Security Services and Endanger Old Ones , June2008.

27 Instant Messaging.28 ABI Research,Vertical Market Opportunities in Unified Communications , Q4 2009.29 Voice over Internet Protocol.30 Internet Protocol.31 Multiprotocol Label Switching.


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32 Capital Expenditure.33 Operating Expenditure.

Cloud BillingTechnical and cost challenges make it di cult or most cloud service providers torun their billing in rastructure in-house. Unlike subscription based billing,pay-per-use billing is complex and ailing to get it right can result in revenueleakages. Telcos can leverage their experience in billing metered services to enterthe cloud billing arena. Operators along with their billing partners can providetheir expertise as a comprehensive cloud billing solution or vendors.

PaaS As IaaS and SaaS space becomes mature and increasingly competitive, operatorsmight shi t their ocus towards PaaS in order to diversi y. PaaS is an attractivesolution or ISVs and SMEs to improve their productivity and reduce costs byusing cloud-delivered toolkits or application development and deployment.Operators can build on their existing experience with Service Delivery Plat orms(SDP) to o er PaaS. Telco assets such as voice, location, and presence can beo ered to help application developers build applications that can be monetized.

Telcos as BrokersThere is a growing demand or cloud brokers as intermediaries between endusers and cloud providers. From SLAs with multiple vendors to compliance andsecurity, the broker handles all cloud related issues or a customer. This approachalso enables customers to switch cloud vendors without worrying about theoperational details. Telco experience in delivering multiple services with stringentSLA requirements, strong enterprise presence, and long lasting relationship withenterprise IT departments gives them an edge in the cloud broker space.

Given the revenue potential and high demand o di erent cloud services, it

is imperative that telcos do not delay their entry in this space. By diligentlyidenti ying and launching the right services at the right time, operators canmaximize their share o wallet while the end customers would reduce IT CAPEX 32 and OPEX33.


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34 Service Delivery Platform.

6 Recommendations

As seen in previous sections, several telcos have entered into cloud computing andare ocusing primarily on IaaS and SaaS. However, there is a signi cant possibilityo these services, especially IaaS being commoditized in the near uture. As theintensity o competition increases and service di erentiation dilutes, margins will

all. There ore, customization and di erentiation across their o erings, servicedelivery, and customer segment targeting, should be the hallmarks o a telco cloudstrategy.

In the subsequent subsections we will illustrate how telcos can carve their niche inthese di erent areas.

Service OfferingsIn addition to providing traditional IaaS, operators should ocus on o eringlocalized and customized services which have a potential o commanding highmargins. This will help them stay relevant in the ace o high competition romestablished players such as Amazon and Rackspace.

Telcos provide enterprise services across various geographies and have a goodunderstanding o local market demand or these services including cloud. Theyare, there ore, best equipped to address the regional cloud services market needs.

For example, in certain geographies cloud -based Virtual Desktop In rastructuremay have high demand, whereas other enterprises might be more interested indisaster recovery. By quickly identi ying and addressing such opportunities,operators can gain an edge over the competition.

O ering customized cloud solutions can help telcos price their services at apremium. For instance, replicating the exact so tware testing environment on thecloud is a challenge or enterprises because many providers do not o er customOS images and limit the type o con gurations. By providing a customized virtualenvironment or companies to replicate their exact test conditions, operators cannot only di erentiate their o erings but also charge higher margins.

Source: Capgemini TME Strategy Lab Analysis; VON, Telco Strategies to Win a Share in the SaaS Pie , June 2007;Company Websites

Telcos ashostingservice

providers for SaaS

Telcos asSaaS

enablers

Expanding basic hosting capabilities tosupport SaaS delivery

Telcos with limited interest in developing arobust SaaS roadmap should adopt thisstrategy

In addition to offering hosting services, atelco acts as an aggregator of SaaS

Telcos with a high interest in SaaS andkeen on positioning themselves as a one-stop-shop for enterprise software shouldadopt this strategy

Telcos asSaaS eco-

systemproviders

Along with hosting, a telco can providecarrier-class data infrastructure, networkconnectivity, and 24x7 monitoring

Telcos keen on differentiating their SaaSproposition and providing value addedservices should go for this strategy

I n c r e a s

i n g

T e

l c o

I n v o

l v e m e n

t

Figure 9: Telco Strategies in the SaaS Space

O ering customized cloudsolutions can help telcosprice their services at apremium


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35 Information and Computing Technology.

In the SaaS space, there are three di erent strategies which telcos can adopt (seeFigure 9) with the level o involvement by operators varying signi cantly. Telcosshould evaluate the level up to which they want to have a SaaS presence andaccordingly adopt the right strategy.

PaaS is an area which will see limited action rom telcos in the near uture.Be ore establishing a PaaS presence, telcos would need to care ully evaluate theirtechnology readiness and experience with plat orms such as SDP 34.

Service DeliveryTelcos should endeavor to deliver services in a way that customers can enjoy thecost bene ts o public cloud and the security and reliability o ered by privateclouds. This can be achieved through Virtual Private Cloud (VPC) deployments.This model delivers services rom a public cloud over MPLS-based Virtual PrivateNetworks. VPC, there ore, o ers the ull security and privacy o a private cloud,but pushes hardware ownership to the service provider. Telcos can leverage theirdistinct strength in providing reliable private IP service to enable a cost e ectiveand secure VPC solution.

In order to address customer concerns such as security, costs, and vendor lock-in, telcos can take up the role o a cloud broker (see Figure 10). This is anotherinnovative approach to service delivery where telcos are well positioned comparedto their competitors because o strong enterprise relationships and experience o delivering multiple services involving stringent SLAs. However, operators shouldbuild signi cant experience in cloud computing be ore adopting this approach,so that they can success ully tackle the complexities associated with end-to-endsolution delivery.

Customer SegmentLarge enterprise customers have multi-country operations and serious concernsabout the security o their applications and data. Also, due to the sheer size andcomplexity o their operations, deploying cloud services, integrating them with

on-premise systems, and continuous maintenance and support becomes a highlycomplex process. In order to target large enterprises, telcos should try and o erenhanced security and end-to-end cloud solutions across multiple countries.

Source: Capgemini TME Strategy Lab A nalysis; Forrester, February 2009

Telcos can mitigate most customer concerns related to cloud, by taking the role of a broker

37%

30%

25%

20%

14%

Cost Control

Security

Compliance

Performance

Vendor Lock-in

Enterprise Cloud Customer Concerns, %, 2009

Creating a level of abstraction between the customer andmultiple CSVs ensures seamless switching of vendors

End to end SLA management, by controlling the entiredelivery chain of services, will ensure high performance

Delivering services through vendors which fulfill allcompliance and regulatory criteria will allay this concern

By monitoring security of multiple CSVs and providing anadditional security layer, security concerns can be reduced

Effective allocation and optimum utilization of internal andexternal resources will ensure effective cost control

Major Customer Concerns How Can Telcos Address These As Brokers?

Figure 10: Telcos as Cloud BrokerIn order to addresscustomer concerns suchas security, costs, andvendor lock-in, telcos cantake up the role o a cloudbroker


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Jerome Buvat is the Global Head o the TME Strategy Lab. He has more thantwelve years experience in strategy consulting in the telecom and media sectors.He is based in London.

Priyank Nandan is a senior consultant in the TME Strategy Lab. His researchinterests and project experiences span diverse areas such as digital media, xedand wireless networks, and cloud computing. He has a deep understanding o theTME industry in both developed and growth markets. Prior to joining the Lab,Priyank worked or a major IT product company. He is based in Mumbai.

For more in ormation contact:

Jerome BuvatHead o Strategic ResearchTelecom, Media & Entertainment

[email protected]+44 (0) 870 905 3186

About the Authors

Capgemini, one of the worldsforemost providers of consulting,technology and outsourcing services,enables its clients to transform andperform through technologies.

Capgemini provides its clients withinsights and capabilities that boosttheir freedom to achieve superiorresults through a unique way of working, the Collaborative BusinessExperienceTM. The Group relieson its global delivery model calledRightshore , which aims to get

the right balance of the best talentfrom multiple locations, working asone team to create and deliver theoptimum solution for clients.

Present in more than 30 countries,Capgemini reported 2009 globalrevenues of EUR 8.7 billion andemploys 100,000 people worldwide.

More information is available atwww.capgemini.com/tme

Rightshore is a trademarkbelonging to Capgemini

About Capgemini and theCollaborative Business Experience

Copyright 2010 Capgemini. All rights reserved.


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