Telecoms and the Cloud: Does it Make Sense?

Issue 1

www.alanquayle.com/blog

© 2011 Alan Quayle Business and Service Development

Outline

• We live in Hyped Times!

• Is History Repeating Itself?

• Why be a Cloud Provider?

• Background to Telcos and Cloud Computing

• Quick Market Review

• Conclusions

2

© 2011 Alan Quayle Business and Service Development

We’ve been here many times before.

Ridiculous hype!

Believe don’t think! Then reality hits!

Is Cloud Computing

any different?

Will history repeat itself?

Cloudosauras

Cloud Obituary

Cloud met its demise on January 1, 2013 with the catastrophic situation of

several nations’ bank and health records were published on the internet.

There’s only one way from the top!

Why Be a Cloud Provider?

Make a Lot of Money

Huge datacenters cost 5-7X less for computation, storage, and networking. Fixed software & deployment amortized over many users. Large company can leverage economies of scale and make money.

Defend a Franchise

What happens as conventional server and enterprise apps embrace cloud computing? Application vendors will want a cloud offering. For example, MSFT Azure should make cloud migration easy.

Attack an Incumbent

A large company (with software & datacenter) will want a beachhead before someone else dominates in the cloud provider space.

Leverage Customer

Relationships

For example, IBM Global Services may offer a branded Cloud Computing offering. IBM and their Global Services customers would preserve their existing relationship and trust.

Become a Platform

Facebook offers plug-in apps. Google App-Engine…

Leverage Existing Investments

Web companies had to build software and datacenters anyway. Adding a new revenue stream at (hopefully) incremental cost.

Why CSPs have a Role in Cloud Computing

• Shared infrastructure

• CSPs have long history of infrastructure, which is networked and interoperable via well-defined interfaces.

• Managed and hosted IT and communications services

• For a longer time CSPs have relied on vendors’ managed services type of professional services, which means that there is no inherent fear of outsourcing operative responsibilities.

• Data centres

• Data centres operations have been for long time the core of CSP production machines.

• Security, data integrity and trust

• These are the traditional key characteristics of telco business.

• Managed network services and end-to-end SLAs.

• CSPs are familiar with end-to-end SLA thinking and KPI based operations.

• Communications as a service

• Communications and connectivity is the bread and butter of CSPs.

• SME customer base

• The customer base of CSPs does cover SME, which means that they are familiar with the problems and issue within the segment.

Telco’s Enterprise – Consumer Pendulum

• 2005’s: Cloud Computing/SaaS Tech. Populism, Pay/Use, Web 2.0

• 2015’s: Enterprise 3.0 Collaborative Business Models Cloud federated master data and distributed business transactions

75’s: ISDN Telephony

1st Gen. Remote Home Workers

•

90’s: Multimedia PCs, Cell Phones Digital Kids, Consumerization IT

•

2010’s: Managed Devices, Media

Convergence Managed Desktops, X-Internet

•

• 65’s: Mainframes in Data Centers Enterprise drives Tech Awareness

Consumer Enterprise

• 80’s: PC on corporate desktop IT education of working generation

Innovators Converged Personas

Mass Adoptors Consumer Specific Personas Enterprise

Comparison of Operator Cloud Services

Operator Cloud Services Features

BT Global Services CaaS Hosted UC, BPOS, Ribbit, Manages Security

Verizon Business EaaS Computing, MSS, Enterprise Mobility (bought Terremark

and Cybertrust)

NTT Data IaaS, SaaS Bought Value Team, Dimension Data, Keane, Intelligroup,

Integralis

Telefonica IaaS, SaaS Security, servers, mobile, cloud app store

Orange Business Services

ITaaS Vertical / M2M, 20+ applications inc. MS, Sage, SAP

AT&T IaaS, PaaS Synaptic Hosting / Compute, Oracle

T-Systems IaaS, SaaS SAP, Dynamic SAP

MPLS SLA

Data Center SLA

Mind the SLA Gap!

Beware Lock-In

Workloads ready for Cloud Computing

• Analytics

– Data mining, text mining or

other analytics

– Data warehouses or data

marts

– Transactional databases

• Business services

– Customer relationship

management

(CRM) or sales force

automation

– E-mail

– Enterprise resource planning

(ERP) applications

– Industry-specific applications

• Collaboration

– Audio/video/Web

conferencing

– Unified communications

– VoIP infrastructure

• Desktop and devices

– Desktop

– Service/help desk

• Development and test

– Development environment

– Test environment

• Infrastructure

– Application servers

– Application streaming

– Business continuity/

disaster recovery

– Data archiving

– Data backup

– Data center network capacity

– Security

– Servers

– Storage

– Training infrastructure

– Wide area network (WAN) capacity

Conclusions Business

Applications

Infrastructure Software

Data Center

VPN Email

CRM Mobile

Its what your mother told you, “Don’t put all your eggs in one basket”

Desktop

Analytics