Cablecos and the Cloud


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After many years of playing the underdog in the enterprise telecommunications arena, cable service providers are now on equal footing with traditional telecommunications companies when it comes to business telecom services. As cloud computing and distributed networking sit poised to become the next indispensable business technology, smart acquisitions of specialist companies seem likely to propel cablecos in general, and Time Warner Cable in particular, to the front of the pack where they might just dominate the business communications landscape in the near future.

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Cablecos and the Cloud

  1. 1. Cablecos and the Cloud Although cable companies' entry into enterprise-grade services initially was, at times, characterized by tentative testings of the water and the occasional misstep, the growth curve that expanded into the business telecommunications arena is now long behind them. Having enacted a number of deliberate strategies for penetrating the enterprise market, cablecos now find themselves with an enviable foothold in the business services space—and with no small amount of momentum behind them as they look to expand further. Taking Care of Business The initial push by cablecos into business services began in earnest several years ago, when cablecos began offering competitive Internet services such as broadband. After earning consumer trust by providing consistent, reliable, and competitive service, cable providers began using bundled services as a way to add value for those customers who switched over from traditional telco providers. As cablecos became surer of their footing, they added more and newer technologies to their rosters. The most recent example of this is the widespread addition of fiber- based Internet, Metro Ethernet, and advanced voice services, which have given cablecos the ability to tailor a selection of services that meets the specific needs of larger customer opportunities. This strategy of developing new technologies outside of their traditional offerings and, in particular, the smart way in which it has been done, has put cablecos on equal footing with incumbent telcos as the industry enters the next great phase of business telecommunications— cloud computing. Cablecos' deliberate strategy also has given them the momentum they need to pull ahead and grow in the enterprise communication space going forward. Doing It the Smart Way For a perfect example of a cableco entering a new customer segment in a smart and well- thought-out way, one needs to look no further than Time Warner Cable’s acquisition of NaviSite, which has allowed the cableco to jump-start its capabilities in cloud computing in dramatic fashion. Cable companies have always been in the cloud computing business, of course. Cable television is really nothing more than providing shared data over a distributed network, which is the very definition of cloud computing. The cloud-based needs of home and business consumers who want to watch television, and the needs of enterprises who want to share scalable amounts of real-time data across multiple locations are very different, however. Time Warner Cable recognized this difference, and, rather than reconfiguring their entire system in an attempt to reinvent the wheel, the company acquired an acknowledged leader in the field of business cloud provisioning and management—NaviSite. NaviSite is a worldwide provider of enterprise-class, cloud-enabled hosted and managed services through their own data centers including: Cloud Hosting/Server Virtualization, Desktop-as-a- Service, Managed applications, and Dedicated Hosting Solutions.
  2. 2. Cloud computing is still a new enough technology in the enterprise sector that many service providers continue to scramble to find their way. The growing trend of acquiring cloud-specialist companies—rather than developing their own cloud capabilities in-house—indicates that cablecos, at least, know where they’re going. Their track record over the last handful of years is also a strong indicator that not only will cablecos get to the cloud first, they’ll get to the cloud best. If you'd like to learn more about partnering with Time Warner Cable Business Class, please visit us at