SlideShare a Scribd company logo
1 of 10
Download to read offline
Essentials for CSPs to Succeed
with Cloud-based Services




                  An Executive Brief Sponsored by IBM

                                         October 2010




                                                    1
ESSENTIALS FOR CSPs TO SUCCEED
WITH CLOUD-BASED SERVICES


INTRODUCTION
                                                                                                       Cloud computing
For many, cloud-based services represent a new way to do the same old things more                      delivers common
efficiently and at lower cost. What this means is that enterprises offload data center                 ground among
operations to a hosted Infrastructure as a Service provider. Independent Software                      application developers,
Vendors offer scalable, pay-per-use subscriptions as an alternative to traditional packaged            enterprises, suppliers
software licenses. From this limited perspective, cloud services could be characterized as             and customers, to create
something similar to a high volume retailer’s business model: efficient operations yield               a new set of service
cost savings that are passed on to consumers. In other words, for many in the industry,                offers that were never
cloud services are a means for providing essentially the same old user experience but at               envisioned, or possible,
a better price. Can such a point of view really have merit? Stratecast believes there is               in the past.
an inherent problem with this perspective as we believe it minimizes the capabilities and
opportunities represented by cloud computing, each of which involves innovation for
services, business models, and technology delivery methods.

In today’s world, business users, enterprises and entire industries demand technology
solutions that improve productivity. Cloud computing introduces evolving service options
created by the interaction among several partners and across multiple industries. In
essence, cloud computing delivers common ground among application developers,
enterprises, suppliers and customers, to create a new set of service offers that were
never envisioned, or possible, in the past. This translates into a significant set of business
requirements including: robust, high-performance networks; strong customer
relationships; application delivery expertise; the continual infusion of innovation;
customer-enabled self-service functionality; predictability of future customer needs; and
flexible, integrated Operations Support Systems (OSS) and Business Support Systems
(BSS).
For Communications Service Providers (CSPs) that are launching new cloud-based
services or considering entry into the cloud services marketplace, there is good news. Of
all the players in the nascent cloud services market including hosting providers, IT
service and equipment suppliers, over-the-top service providers and application
providers, CSPs are best positioned to successfully deliver on the cloud computing vision.
However, success will require most CSPs to initiate change in their services strategy,
marketing approach, and their underlying service delivery (network and IT) architectures.
It also sparks an evaluation of the way business is conducted and IT systems are used to
address the concept-to-cash business processes. Partners must be embraced; technology
must be integrated; and above all, customers must be given the flexibility to define the
way services will best meet their needs.

In this paper, Stratecast identifies the essentials a CSP must consider, to ensure a
successful presence in the high-opportunity cloud-based services marketplace.

October 2010                                                 © 2010 Stratecast. All Rights Reserved.                     2
THE NEW BUSINESS WORLD

As businesses turn to technology to solve their strategic issues, they increasingly make
cloud computing a part of the solution. Industries that have embraced this concept
include consumer electronics, media and entertainment, healthcare, textbook publishing,
education as “distance learning”, government services, manufacturing, utilities and more.
Through their cloud service offerings, CSPs have the power to help their enterprise                 A well designed cloud
customers evolve their businesses to take advantage of the changing                                 services strategy can
communications marketplace, as they work to deliver a better experience for their                   place a CSP squarely in
own customers. In fact, CSPs can play a central role in serving the marketplace with                the middle of every
cloud services.                                                                                     business need of every
                                                                                                    enterprise customer
As shown in Figure 1, a common thread that runs within several industries is the need to            within its addressable
enhance the goods and services each can produce with capabilities from the                          market.
communications marketplace, especially the mobile sector, to create new or improved
customer-focused solutions. A second point is the dependence of these industries on
CSPs to deliver a repeatable and cost-effective means to combine the communications-
enabled products and services from one enterprise with those of another, where it
makes business sense to do so. This is why a well designed cloud services strategy can
place a CSP squarely in the middle of every business need of every enterprise customer
within its addressable market.

Figure 1
CSPs Have the Opportunity to Address Multi-Indust ry Business Models




                                                                               Source: Stratecast



October 2010                                              © 2010 Stratecast. All Rights Reserved.                     3
ESSENTIALS FOR SUCCESS WITH CLOUD

Cloud computing provides attractive alternatives with respect to what services can be
delivered and how they are delivered, but cloud computing isn’t a “do it yourself”
opportunity. Whether you have already launched a cloud portfolio, or whether you are
still weighing options to determine the best approach, the following list of essentials will
help ensure best positioning for future success.                                                      To achieve the highest
                                                                                                      level of success, take
Getting Started                                                                                       time to develop a cloud
                                                                                                      services strategy that
    Invest Time in Developing a Cloud Services Business Strategy – The cloud
                                                                                                      supports your corporate
    services concept burst into the industry’s consciousness very quickly, and offers
                                                                                                      strategy.
    were speedily brought to market to capitalize on the hype. Unfortunately, many of
    the initial service offerings were delivered without the proper type of automation
    required for a sustained and consistent means to profitable monetization. Instead,
    these service offers relied on largely customized, labor-intensive ordering,
    installation, and billing processes that defy the precepts of cloud computing (i.e., low
    cost of delivery based on automation and standardization). Successful CSPs must
    adapt cloud service offers rapidly and seamlessly to address change in the market and
    in business practices. To achieve the highest level of success, take time to develop a
    cloud services strategy that supports your corporate strategy; addresses priority
    market segments where upside revenue potential may currently be dormant; and
    includes a solid foundation from which to launch and support such services. This
    foundation should include attention to people, processes, and technology, since the
    introduction of cloud services requires changes in each of these fundamental areas of
    the business to address dynamic market needs.

    Leverage Your Corporate Strengths – Cloud computing presents many
    opportunities to save and make money. In setting a cloud services strategy, you
    should determine which approach and business direction provides the best means to
    reach your target market. In general, your network and established OSS/BSS
    environment better positions you to deliver and manage end-to-end cloud services
    when weighed against other competitors such as data center-centric cloud providers.
    Your organization brings additional strengths including a recognized market brand,
    established customer relationships, skilled professional services teams, existing
    managed security, WAN optimization, application delivery services, and customer self
    -service portals. By building a strategy that leverages your corporate strengths,
    provides other service-specific differentiators, and simultaneously begins to address
    any known operational deficiencies that will get stressed upon launch of new cloud
    services, you will ultimately be more confident in your ability to meet your target
    customer’s business objectives and have a better chance of achieving the commercial
    success your organization seeks.

    Align Your Cloud and Traditional Services Offers – Cloud services should not
    be considered an entirely new line of business per se; instead they should
    complement your existing service offering lines. By adopting this approach, you can

October 2010                                                © 2010 Stratecast. All Rights Reserved.                    4
leverage your market knowledge and in-house expertise as you launch your cloud
    portfolio. For example, a CSP that focuses on the consumer market should resist
    targeting business customers with its cloud offers. CSPs that already have a hosting
    or co-lo business should consider expanding with complementary cloud
    Infrastructure as a Service offers. A CSP that differentiates with its end-to-end
    application delivery capabilities should provide a managed cloud solution that
    includes application delivery, security, and performance guarantees – but only if the           If you build your own
    supporting OSS and BSS can address such needs.                                                  proprietary solution you
    Choose Partners That Can Help You Grow – Launch of and support for cloud
                                                                                                    will likely find yourself
    services isn’t a “go-it-alone” model. If you build your own proprietary solution you
                                                                                                    at a competitive
    will likely find yourself at a competitive disadvantage as market conditions change or          disadvantage as market
    as customer needs become more complex. Instead, involve IT industry leaders that                conditions change or as
    can introduce you to a relevant set of innovative application and services partners             customer needs become
    that can also deliver an evolving supply of new services and applications for your              more complex.
    customers. Select business oriented technology partners that have extensive and long
    -standing IT knowledge, particularly in the data center area, in addition to OSS BSS
    industry domain knowledge so they can work with you to establish a robust, and
    highly scalable cloud services environment. They should also be charged with
    ensuring such new business functions are integrated with existing processes and
    systems. Finally, they must have the insight to help you capture the innovation from
    application partners to bring diversity to your service portfolio and to enable your
    sales force, care representatives, and Web portal to sell, manage and support new
    services once put into play. Harnessing the power of the ecosystem is paramount in
    the cloud services world so don’t underestimate the importance and impact to the
    business of selecting the best partners most able to enrich your service portfolio.

Automation is Essent ial for Suc cess

    Invest In an Integrated Cloud Services Management Platform – Cloud
    computing is about automation and standardization. In many cases, your organization
    is only part of the end-to-end service offering. As the network connectivity supplier,
    among other things, you are best equipped to manage the complex services
    encompassing the means from multiple suppliers brought together under a cloud
    service offer. This is why you can be at the heart of every business need of every one
    of your customers with the help of a centralized management control platform.

    Such a platform will likely overlay your existing OSS BSS environment but will be
    enabled to handle the business relationship needs between applications, services,
    content suppliers, your business processes, and end customers. It will have enough
    flexibility to support multiple customer environments (private data center, private
    cloud, public cloud). It will be highly automated so as to be a very low/no touch
    operation for achieving the attractive and sustainable profit margins that cloud
    services can deliver. It must integrate with your existing business and operations
    environment as seamlessly as possible, with a readiness for operation within weeks of
    project launch.


October 2010                                              © 2010 Stratecast. All Rights Reserved.                      5
Consider a single supplier’s cloud service management platform as long as it is
    designed to meet key cloud-based business functions including: rapid partner
    enablement; automated resource provisioning; high transaction throughput
    performance and scalability; service lifecycle support; customer self-service especially
    for business customers who typically demand high levels of visibility and control;
    application and service search, review, selection, purchase, and delivery; integrated
    trouble management between your processes and other suppliers; wholesale and                       Such a platform will
    retail convergent charging; and service quality monitoring and management.                         likely overlay your
                                                                                                       existing OSS BSS
    Finally, be sure your installed OSS and BSS environment can address current network
                                                                                                       environment but will be
    connectivity service requests in a flow-through manner. Doing so will enable you to
                                                                                                       enabled to handle the
    meet the pay-as-you-grow expectations that most enterprise customers now have for
                                                                                                       business relationship
    cloud-based services, while minimizing your upfront investment and accelerating your
                                                                                                       needs between
    time to revenue.
                                                                                                       applications, services,
    Build Appropriate Security and Performance Specifications Into Your Service                        content suppliers, your
    Offers – In any shared environment, customers have major concerns about                            business processes, and
    application security, availability, and performance. If you plan to offer mission critical         end customers.
    business applications, select a cloud service management platform with built-in
    security. Adjunct security offerings may not be capable enough to meet the stringent
    requirements that are likely to come from your largest and most important
    customers. For example, your platform should enable you to create service offers
    that are fortified with security components and strong Service Level Agreement
    (SLA) monitoring and enforcement mechanisms. Because customer needs vary, a
    flexible suite of cloud service selections will then allow customers to pick different
    security options (including data encryption, safeguards against unauthorized access,
    and protection from data loss or leakage) and performance SLAs (including
    availability, latency, and packet loss) according to need.

    Establish Automated Partner Processes – To help differentiate your brand, and
    for cloud services to remain competitively strong, application, service, and content
    partners require an easy means to interface between their software development
    environment and your cloud services management platform. As evidenced by the
    growth of App Stores for the mobile communications market, a rich and steady influx
    of new applications is the easiest way to demonstrate value to users, to keep them
    engaged, and to prevent churn. A developer-friendly way to add partner-provided
    content to an always available, always on network connection can shorten time-to-
    market; minimize re-coding through standard APIs and templates; and support
    conversion of certain applications for mobile access. Such actions will bring solid
    value to customers, and deliver profitable margins to all involved.

    Support On-Demand Customer Self-Care – A critical aspect of cloud services is
    flexibility, through automation, in delivering a meaningful service experience from the
    end customer’s perspective. Compared to the way things were just a few years ago,
    customers who have experienced interactive video, mobile TV, mobile banking, and
    distance learning have already gained an appreciation for automated and easy-to-use


October 2010                                                 © 2010 Stratecast. All Rights Reserved.                     6
self-service functionality. Your web portal should provide the end user with a similar
    way to find, buy and manage the service offers they desire. In essence, through
    integration with the cloud management platform, the search functionality should be
    optimized such that customers can find what they need and more of what they need
    including access to applications, storage, and computing capacity. It also must provide
    users with self-service tools such as policy-defined usability or financial controls for           A critical aspect of
    managing their subscribed services.                                                                cloud services is
    Your customer self-service portal should allow your organization to capitalize on                  flexibility, through
    cross-sell or up-sell opportunities by automatically offering targeted, personalized               automation, in
    recommendations for logical companion apps and services that the user is likely to                 delivering a meaningful
    buy based on analysis of service adoption and usage patterns captured about other                  service experience from
    users. It means offering customers spontaneously created service bundles that fit                  the end customer’s
    their unique needs, by bringing to bear the entire service portfolio and allowing a                perspective.
    certain amount of user involvement in combining multiple service options into
    packages based on pre-established pricing policies.

    Most importantly, the “behind-the-scenes” functions to enable this customer-facing
    simplicity are not likely to come from existing systems and business processes for
    any of the standard operations functions including ordering, fulfillment, assurance and
    billing, since they were never designed to address most of the on-demand needs
    cloud services require. Success will come from flexible systems that can interface
    with existing business functions and that will deliver the functionality to address all of
    the requirements from this new breed of services.

Managing and Monetizing the I nvestment

    Rely on Business Analytics – A successful cloud strategy will anticipate the future
    while addressing current customer needs. Tools are now available to optimize
    business insight about key market segments and to gain an understanding about which
    services provide high customer value and high margin for your organization. Tailoring
    up-sell and cross-sell offers based on customer usage trends, service adoption
    patterns, social networking analysis and insight from other data sources, both
    historical and real-time, are available today from leading vendors with business
    intelligence and analytics applications. Such focus is essential in a cloud-enabled
    future where you will, over time, offer potentially hundreds of thousands of new
    services. In this environment, business involves cross-industry and closer partner/
    supplier collaboration, machine-to-machine communications, and a deeper level of
    customer defined service and account management. Analytics tools enable you to
    stay on top of changing customer needs, dynamic applications and the evolving
    services marketplace. This is important for anticipating new business opportunities
    and to shape marketing or sales strategies according to actual or anticipated
    customer demand.

    Enable Your Sales Force – A cloud service management platform will enable new
    services and hence sales opportunities in a myriad of ways. Part of the equation for


October 2010                                                 © 2010 Stratecast. All Rights Reserved.                     7
success involves breathing new life into existing service packages through real-time
    on-demand pricing options. Cloud services can expand your organization into new
    markets by combining services from two or more content suppliers, through a
    broadband connection, to create service options that previously were not possible.
    They can even enable partners or resellers to deliver your branded end-to-end
    solutions involving network connectivity, application availability and customer
    equipment as a simple package targeted to meet specific Small or Medium Enterprise              Tools are now available
    (SME) business needs across multiple sectors as well as within such sectors as                  to optimize business
    education, retail, hospitality, and the professional services domain. Addressing these          insight about key
    opportunities requires enhanced business processes, flexible systems and,                       market segments and to
    comprehensive training of all sales and support personnel in how to provide                     gain an understanding
    customers and prospects with the cloud services information they need to recognize              about which services
    the business value supplied from such flexible service options.                                 provide high customer
    In selecting a partner for executing your platform strategy, be mindful that a                  value and high margin
    technology-only partner will deliver the right technology components to place cloud             for your organization.
    services into the competitive marketplace, but it will not necessarily provide help in
    ensuring commercial success once these services are in play. The larger IT vendors
    not only deal with the critical technology needs for implementing a cloud services
    strategy, but typically have sales training arms that will devise a program for you to
    equip your sellers and channels with the right knowledge to help ensure success with
    your targeted enterprise segments.




October 2010                                              © 2010 Stratecast. All Rights Reserved.                    8
Stratecast
                                     The Last Word
The communications industry is undergoing change at a monumental pace when compared
with how business was conducted even just 10 years ago. Technology evolution and
customer demand are driving new ways to satisfy wanting more for less and doing things
faster, better and cheaper than ever before. Cloud services are an integral part of this
process as they have enticed customers in all segments to embrace the new self-service
procurement and management model within a world of ever-increasing information,
entertainment, and communications-enhanced IT applications and services.
Cloud computing is both a new service offer and a new way to provide services to a rising
tide of customers – business enterprise and consumers. For the CSP community, cloud
computing represents a new era for real-time service offers and real-time accountability for
how customers use and pay for services, which often extends beyond the traditional walls of
network connectivity. It also means embracing new business models to stay synchronized
with changing market conditions. The largest business challenge to the global CSP
community is in support for these new business needs because existing systems and
processes were never designed to address real-time business operations or pay-as-you-grow
business models. However, this challenge can be met by seeking cost-effective ways to
augment existing systems and processes with flexible technology and business solutions that
will drive the service creation and delivery environment to a lower cost structure while
providing the opportunity to infuse innovation into the new services environment.
 Gaining customer attention in a crowded marketplace requires CSPs to seek a competitive
 advantage if they want to succeed in this evolving, dynamic, and increasingly competitive
 environment. For example, it requires a dedicated focus on directing your organization
                                                                                                        Karl Whitelock
 toward a new business and operating model while, at the same time continuing current
..
 operations to meet today’s business needs. Defining the right cloud services strategy is not           Director Strategy –
                                                                                                        OSS/BSS Global Competitive
 the same for every CSP. Your strategy, and especially your business focus for supporting
                                                                                                        Strategies
 your customer base, must be different from other cloud operators. What is common is a
                                                                                                        Stratecast (a Division of Frost
 solid realization that cloud services are different from anything delivered in the past because
                                                                                                        & Sullivan)
 they intensify the dependence on all types of partners (business, application, technology).
                                                                                                        kwhitelock@stratecast.com
 As such, they will illuminate the weaknesses that current systems and processes display.
 Customer demand for more innovative services with increasing complexity will only
 intensify over time.                                                                                   Lynda Stadtmueller
The cloud services evolution is here to stay. Are you competitively tuned to your                       Program Manager –
customer’s needs? In this new world, working with a trusted partner for both IT and                     Business Communication
business management issues may seem like age-old advice. However, when it comes to                      Services
changing business models, real-time processes, and deepened external partner interactions,              Stratecast (a Division of Frost
you need to count on the proven capabilities of an organization that can help bring all of the          & Sullivan)
important elements of service creation, management and monetization together for gaining                lstadtmueller@stratecast.com
the competitive advantage you need to succeed. Cloud computing is quickly becoming the
new business reality. The real question is: will you be ready when customers ask for help?



  October 2010                                                © 2010 Stratecast. All Rights Reserved.                           9
Silicon Valley
                                                                                                                    331 E. Evelyn Ave., Suite 100
                                                                                                                      Mountain View, CA 94041
                                                                                                                                Tel 650.475.4500
                                                                                                                               Fax 650.475.1570

                                                                                                                                  San Antonio
                                                                                                              7550 West Interstate 10, Suite 400,
                                                                                                                 San Antonio, Texas 78229-5616
                                                                                                                               Tel 210.348.1000
                                                                                                                               Fax 210.348.1003

               CONTACT                                                                                                                London
                   US                                                                                                    4, Grosvenor Gardens,
                                                                                                                       London SWIW ODH,UK
                                                                                                                         Tel 44(0)20 7730 3438
                                                                                                                         Fax 44(0)20 7730 3343



                                                                                                                                    877.GoFrost
Beijing
                                                                                                                              myfrost@frost.com
Bengaluru                                                                                                                   http://www.frost.com

Bogotá

Buenos Aires

Cape Town

Chennai

Delhi

Dubai

Frankfurt

Kolkata

Kuala Lumpur

London

Manhattan                ABOUT STRATECAST
Melbourne
                         Stratecast assists clients in achieving their strategic and growth objectives by providing critical, objective
Mexico City
                         and accurate strategic insight on the global communications industry. As a division of Frost & Sullivan,
Milan                    Stratecast’s strategic consulting and analysis services complement Frost & Sullivan's Market Engineering
Mumbai                   and Growth Partnership services. Stratecast's product line includes subscription-based recurring analysis
                         programs focused on Business Communication Services (BCS), Consumer Communication Services (CCS),
Oxford
                         Communications Infrastructure and Convergence (CIC), OSS and BSS Global Competitive Strategies
Palo Alto                (OSSCS), and our weekly opinion editorial, Stratecast Perspectives and Insight for Executives (SPIE).
Paris                    Stratecast also produces research modules focused on a single research theme or technology area such as
                         IMS and Service Delivery Platforms (IMS&SDP), Managed and Professional Services (M&PS), Mobility and
Rockville Centre
                         Wireless (M&W), Multi-Channel Video Programming Distribution (MVPD), and Secure Networking (SN).
San Antonio              Custom consulting engagements are available. Contact your Stratecast Account Executive for advice on
São Paulo                the best collection of services for your growth needs.
Seoul
                         ABOUT FROST & SULLIVAN
Shanghai

Singapore                Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-
Sydney                   in-class positions in growth, innovation and leadership. The company's Growth Partnership Service
                         provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to
Tel Aviv
                         drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan
Tokyo                    leverages 49 years of experience in partnering with Global 1000 companies, emerging businesses and the
Toronto                  investment community from more than 40 offices on six continents. To join our Growth Partnership,
                         please visit http://www.frost.com.
Warsaw

                                                                                                           TLE03002-USEN-00

More Related Content

What's hot

Customer Centric Cloud Hype or Hybrid Whitepaper-1
Customer Centric Cloud Hype or Hybrid Whitepaper-1Customer Centric Cloud Hype or Hybrid Whitepaper-1
Customer Centric Cloud Hype or Hybrid Whitepaper-1
Telstra_International
 
AGI - Cloud Sales Practice And Incentive Study
AGI - Cloud Sales Practice And Incentive StudyAGI - Cloud Sales Practice And Incentive Study
AGI - Cloud Sales Practice And Incentive Study
cehrnrooth
 
The Journey to Cloud Computing: From experimentation to business reality (Hur...
The Journey to Cloud Computing: From experimentation to business reality (Hur...The Journey to Cloud Computing: From experimentation to business reality (Hur...
The Journey to Cloud Computing: From experimentation to business reality (Hur...
IBM India Smarter Computing
 
Keynote SAP Cloud @ Bitkom CeBIT2013 ENGLISH
Keynote SAP Cloud @ Bitkom CeBIT2013 ENGLISHKeynote SAP Cloud @ Bitkom CeBIT2013 ENGLISH
Keynote SAP Cloud @ Bitkom CeBIT2013 ENGLISH
Bert Oliver Schulze
 
Cloud transformation enabling through tsg service lifecycle tool by helmuth z...
Cloud transformation enabling through tsg service lifecycle tool by helmuth z...Cloud transformation enabling through tsg service lifecycle tool by helmuth z...
Cloud transformation enabling through tsg service lifecycle tool by helmuth z...
Khazret Sapenov
 
MISA Cloud Workshop _Reimagining Services delivery in the cloud
MISA Cloud Workshop _Reimagining Services delivery in the cloudMISA Cloud Workshop _Reimagining Services delivery in the cloud
MISA Cloud Workshop _Reimagining Services delivery in the cloud
MISA Ontario Cloud SIG
 
Moving your data centre to the Cloud_Final_Online
Moving your data centre to the Cloud_Final_OnlineMoving your data centre to the Cloud_Final_Online
Moving your data centre to the Cloud_Final_Online
jonathanbradbury
 

What's hot (20)

Customer Centric Cloud Hype or Hybrid Whitepaper-1
Customer Centric Cloud Hype or Hybrid Whitepaper-1Customer Centric Cloud Hype or Hybrid Whitepaper-1
Customer Centric Cloud Hype or Hybrid Whitepaper-1
 
Social Business in the Cloud: Achieving Measurable Results
Social Business in the Cloud: Achieving Measurable ResultsSocial Business in the Cloud: Achieving Measurable Results
Social Business in the Cloud: Achieving Measurable Results
 
AGI - Cloud Sales Practice And Incentive Study
AGI - Cloud Sales Practice And Incentive StudyAGI - Cloud Sales Practice And Incentive Study
AGI - Cloud Sales Practice And Incentive Study
 
HP E-Zine: Communications
HP E-Zine: CommunicationsHP E-Zine: Communications
HP E-Zine: Communications
 
AppDirect Cloud Service Commerce 101 White Paper
AppDirect Cloud Service Commerce 101 White PaperAppDirect Cloud Service Commerce 101 White Paper
AppDirect Cloud Service Commerce 101 White Paper
 
Cloud computing - was bringt's
Cloud computing - was bringt'sCloud computing - was bringt's
Cloud computing - was bringt's
 
The Journey to Cloud Computing: From experimentation to business reality (Hur...
The Journey to Cloud Computing: From experimentation to business reality (Hur...The Journey to Cloud Computing: From experimentation to business reality (Hur...
The Journey to Cloud Computing: From experimentation to business reality (Hur...
 
Navigating the Uncertain World Facing Service Providers - Juniper's Perspective
Navigating the Uncertain World Facing Service Providers - Juniper's PerspectiveNavigating the Uncertain World Facing Service Providers - Juniper's Perspective
Navigating the Uncertain World Facing Service Providers - Juniper's Perspective
 
Cloud
CloudCloud
Cloud
 
MSP Industry Brief - From Break / Fix to Recurring Revenue
MSP Industry Brief - From Break / Fix to Recurring Revenue MSP Industry Brief - From Break / Fix to Recurring Revenue
MSP Industry Brief - From Break / Fix to Recurring Revenue
 
9 enterprise tech trends for 2016 and beyond
9 enterprise tech trends for 2016 and beyond9 enterprise tech trends for 2016 and beyond
9 enterprise tech trends for 2016 and beyond
 
Private Cloud Adoption: Patterns for the Enterprise
Private Cloud Adoption: Patterns for the  EnterprisePrivate Cloud Adoption: Patterns for the  Enterprise
Private Cloud Adoption: Patterns for the Enterprise
 
Keynote SAP Cloud @ Bitkom CeBIT2013 ENGLISH
Keynote SAP Cloud @ Bitkom CeBIT2013 ENGLISHKeynote SAP Cloud @ Bitkom CeBIT2013 ENGLISH
Keynote SAP Cloud @ Bitkom CeBIT2013 ENGLISH
 
Cloud transformation enabling through tsg service lifecycle tool by helmuth z...
Cloud transformation enabling through tsg service lifecycle tool by helmuth z...Cloud transformation enabling through tsg service lifecycle tool by helmuth z...
Cloud transformation enabling through tsg service lifecycle tool by helmuth z...
 
Cloud-Based E-Invoicing
Cloud-Based E-InvoicingCloud-Based E-Invoicing
Cloud-Based E-Invoicing
 
MISA Cloud Workshop _Reimagining Services delivery in the cloud
MISA Cloud Workshop _Reimagining Services delivery in the cloudMISA Cloud Workshop _Reimagining Services delivery in the cloud
MISA Cloud Workshop _Reimagining Services delivery in the cloud
 
Moving your data centre to the Cloud_Final_Online
Moving your data centre to the Cloud_Final_OnlineMoving your data centre to the Cloud_Final_Online
Moving your data centre to the Cloud_Final_Online
 
2013.07.05 [IBM] Cloud Ecosystem Forum - Atelier Fournisseur de Services et d...
2013.07.05 [IBM] Cloud Ecosystem Forum - Atelier Fournisseur de Services et d...2013.07.05 [IBM] Cloud Ecosystem Forum - Atelier Fournisseur de Services et d...
2013.07.05 [IBM] Cloud Ecosystem Forum - Atelier Fournisseur de Services et d...
 
Everything is a service
Everything is a serviceEverything is a service
Everything is a service
 
Become a social business in the cloud
Become a social business in the cloudBecome a social business in the cloud
Become a social business in the cloud
 

Viewers also liked

Aquisição da AES Atimus
Aquisição da AES AtimusAquisição da AES Atimus
Aquisição da AES Atimus
TIM RI
 
Plano industrial 2015 2017
Plano industrial 2015 2017Plano industrial 2015 2017
Plano industrial 2015 2017
TIM RI
 

Viewers also liked (18)

IBM's CIO Study: Telecom Industry Executive Summary
IBM's CIO Study: Telecom Industry Executive SummaryIBM's CIO Study: Telecom Industry Executive Summary
IBM's CIO Study: Telecom Industry Executive Summary
 
The Information Agenda Guide for CSPs
The Information Agenda Guide for CSPsThe Information Agenda Guide for CSPs
The Information Agenda Guide for CSPs
 
2015 Consumer Trends
2015 Consumer Trends2015 Consumer Trends
2015 Consumer Trends
 
Telecommunications Industry CEO's Discuss Capitalizing on Complexity
Telecommunications Industry CEO's Discuss Capitalizing on ComplexityTelecommunications Industry CEO's Discuss Capitalizing on Complexity
Telecommunications Industry CEO's Discuss Capitalizing on Complexity
 
IBM SPDE - Enabling Service Providers to Work Smarter
IBM SPDE - Enabling Service Providers to Work SmarterIBM SPDE - Enabling Service Providers to Work Smarter
IBM SPDE - Enabling Service Providers to Work Smarter
 
Aquisição da AES Atimus
Aquisição da AES AtimusAquisição da AES Atimus
Aquisição da AES Atimus
 
Social Networking Sites are Changing the Face of Communcation
Social Networking Sites are Changing the Face of CommuncationSocial Networking Sites are Changing the Face of Communcation
Social Networking Sites are Changing the Face of Communcation
 
Gathering CMO-mentum
Gathering CMO-mentumGathering CMO-mentum
Gathering CMO-mentum
 
Plano industrial 2015 2017
Plano industrial 2015 2017Plano industrial 2015 2017
Plano industrial 2015 2017
 
Upping your game: Realigning the four faces of finance
Upping your game: Realigning the four faces of financeUpping your game: Realigning the four faces of finance
Upping your game: Realigning the four faces of finance
 
Google Connected Consumer Survey
Google Connected Consumer SurveyGoogle Connected Consumer Survey
Google Connected Consumer Survey
 
Tendances relatives au capital humain en 2015
Tendances relatives au capital humain en 2015Tendances relatives au capital humain en 2015
Tendances relatives au capital humain en 2015
 
The Connected Consumer in 2015 and Beyond: What You Need to Know, What You Ne...
The Connected Consumer in 2015 and Beyond: What You Need to Know, What You Ne...The Connected Consumer in 2015 and Beyond: What You Need to Know, What You Ne...
The Connected Consumer in 2015 and Beyond: What You Need to Know, What You Ne...
 
IBM WebSphere Application Foundation Sessions at IBM InterConnect 2015
IBM WebSphere Application Foundation Sessions at IBM InterConnect 2015IBM WebSphere Application Foundation Sessions at IBM InterConnect 2015
IBM WebSphere Application Foundation Sessions at IBM InterConnect 2015
 
Tendances en analytique 2015: Maîtres de l’exploration en profondeur
Tendances en analytique 2015: Maîtres de l’exploration en profondeurTendances en analytique 2015: Maîtres de l’exploration en profondeur
Tendances en analytique 2015: Maîtres de l’exploration en profondeur
 
Persuasion: How to Influence Others
Persuasion: How to Influence OthersPersuasion: How to Influence Others
Persuasion: How to Influence Others
 
Deloitte Technology, Media and Telecommunications (TMT) Predictions 2015
Deloitte Technology, Media and Telecommunications (TMT) Predictions 2015Deloitte Technology, Media and Telecommunications (TMT) Predictions 2015
Deloitte Technology, Media and Telecommunications (TMT) Predictions 2015
 
Finance 2020: Concevoir une fonction finance qui répond aux nouvelles exigences
Finance 2020: Concevoir une fonction finance qui répond aux nouvelles exigencesFinance 2020: Concevoir une fonction finance qui répond aux nouvelles exigences
Finance 2020: Concevoir une fonction finance qui répond aux nouvelles exigences
 

Similar to Cloud Services Essentials for CSPs from IBM

IBM Becoming a Cloud Service Provider White Paper
IBM Becoming a Cloud Service Provider White PaperIBM Becoming a Cloud Service Provider White Paper
IBM Becoming a Cloud Service Provider White Paper
Mauricio Godoy
 
The cloud promises
The cloud promisesThe cloud promises
The cloud promises
Grand Crue
 
Finding The Right Cloud Solution Wp111455
Finding The Right Cloud Solution Wp111455Finding The Right Cloud Solution Wp111455
Finding The Right Cloud Solution Wp111455
Erik Ginalick
 
Demystifying Cloud Services - A Gateway to Digital Transformation.pptx
Demystifying Cloud Services - A Gateway to Digital Transformation.pptxDemystifying Cloud Services - A Gateway to Digital Transformation.pptx
Demystifying Cloud Services - A Gateway to Digital Transformation.pptx
poojalate59
 
ViON_Benefits of Cloud_WhitePaper_D6_V3
ViON_Benefits of Cloud_WhitePaper_D6_V3ViON_Benefits of Cloud_WhitePaper_D6_V3
ViON_Benefits of Cloud_WhitePaper_D6_V3
Jessica Copeman
 

Similar to Cloud Services Essentials for CSPs from IBM (20)

IBM Becoming a Cloud Service Provider White Paper
IBM Becoming a Cloud Service Provider White PaperIBM Becoming a Cloud Service Provider White Paper
IBM Becoming a Cloud Service Provider White Paper
 
The cloud promises
The cloud promisesThe cloud promises
The cloud promises
 
How to sell SDP in the cloud in americas
How to sell SDP in the cloud in americasHow to sell SDP in the cloud in americas
How to sell SDP in the cloud in americas
 
Microsoft Cloud Computing E-Book
Microsoft Cloud Computing E-BookMicrosoft Cloud Computing E-Book
Microsoft Cloud Computing E-Book
 
More cloud less fluff
More cloud less fluffMore cloud less fluff
More cloud less fluff
 
Cloud
CloudCloud
Cloud
 
Achieve Economic Synergies by Managing Your Enterprise Assets In The Cloud
Achieve Economic Synergies by Managing Your Enterprise Assets In The CloudAchieve Economic Synergies by Managing Your Enterprise Assets In The Cloud
Achieve Economic Synergies by Managing Your Enterprise Assets In The Cloud
 
Transforming an organization to cloud
Transforming an organization to cloud Transforming an organization to cloud
Transforming an organization to cloud
 
Five Ways Cloud CPE Reduces Costs and Enables Innovative Enterprise Services
Five Ways Cloud CPE Reduces Costs and Enables Innovative Enterprise ServicesFive Ways Cloud CPE Reduces Costs and Enables Innovative Enterprise Services
Five Ways Cloud CPE Reduces Costs and Enables Innovative Enterprise Services
 
Beyond Cost Savings: Driving Business Value from the Cloud Through XaaS
Beyond Cost Savings: Driving Business Value from the Cloud Through XaaSBeyond Cost Savings: Driving Business Value from the Cloud Through XaaS
Beyond Cost Savings: Driving Business Value from the Cloud Through XaaS
 
Finding The Right Cloud Solution Wp111455
Finding The Right Cloud Solution Wp111455Finding The Right Cloud Solution Wp111455
Finding The Right Cloud Solution Wp111455
 
Demystifying Cloud Services - A Gateway to Digital Transformation.pptx
Demystifying Cloud Services - A Gateway to Digital Transformation.pptxDemystifying Cloud Services - A Gateway to Digital Transformation.pptx
Demystifying Cloud Services - A Gateway to Digital Transformation.pptx
 
Industry edge communications edition spring 2013
Industry edge communications edition spring 2013Industry edge communications edition spring 2013
Industry edge communications edition spring 2013
 
How to choose the right cloud provider for your business needs.pdf
How to choose the right cloud provider for your business needs.pdfHow to choose the right cloud provider for your business needs.pdf
How to choose the right cloud provider for your business needs.pdf
 
New Era in Insurance - Cloud Computing
New Era in Insurance - Cloud ComputingNew Era in Insurance - Cloud Computing
New Era in Insurance - Cloud Computing
 
Could Service Provider Forum
Could Service Provider ForumCould Service Provider Forum
Could Service Provider Forum
 
Carmatec
CarmatecCarmatec
Carmatec
 
Demystifying The Cloud-iON Cloud ERP
Demystifying The Cloud-iON Cloud ERPDemystifying The Cloud-iON Cloud ERP
Demystifying The Cloud-iON Cloud ERP
 
Adding Cloud to the Service Delivery Mix: Business Drivers and Organizational...
Adding Cloud to the Service Delivery Mix: Business Drivers and Organizational...Adding Cloud to the Service Delivery Mix: Business Drivers and Organizational...
Adding Cloud to the Service Delivery Mix: Business Drivers and Organizational...
 
ViON_Benefits of Cloud_WhitePaper_D6_V3
ViON_Benefits of Cloud_WhitePaper_D6_V3ViON_Benefits of Cloud_WhitePaper_D6_V3
ViON_Benefits of Cloud_WhitePaper_D6_V3
 

Recently uploaded

Hyatt driving innovation and exceptional customer experiences with FIDO passw...
Hyatt driving innovation and exceptional customer experiences with FIDO passw...Hyatt driving innovation and exceptional customer experiences with FIDO passw...
Hyatt driving innovation and exceptional customer experiences with FIDO passw...
FIDO Alliance
 

Recently uploaded (20)

Microsoft CSP Briefing Pre-Engagement - Questionnaire
Microsoft CSP Briefing Pre-Engagement - QuestionnaireMicrosoft CSP Briefing Pre-Engagement - Questionnaire
Microsoft CSP Briefing Pre-Engagement - Questionnaire
 
1111 ChatGPT Prompts PDF Free Download - Prompts for ChatGPT
1111 ChatGPT Prompts PDF Free Download - Prompts for ChatGPT1111 ChatGPT Prompts PDF Free Download - Prompts for ChatGPT
1111 ChatGPT Prompts PDF Free Download - Prompts for ChatGPT
 
(Explainable) Data-Centric AI: what are you explaininhg, and to whom?
(Explainable) Data-Centric AI: what are you explaininhg, and to whom?(Explainable) Data-Centric AI: what are you explaininhg, and to whom?
(Explainable) Data-Centric AI: what are you explaininhg, and to whom?
 
Event-Driven Architecture Masterclass: Engineering a Robust, High-performance...
Event-Driven Architecture Masterclass: Engineering a Robust, High-performance...Event-Driven Architecture Masterclass: Engineering a Robust, High-performance...
Event-Driven Architecture Masterclass: Engineering a Robust, High-performance...
 
Hyatt driving innovation and exceptional customer experiences with FIDO passw...
Hyatt driving innovation and exceptional customer experiences with FIDO passw...Hyatt driving innovation and exceptional customer experiences with FIDO passw...
Hyatt driving innovation and exceptional customer experiences with FIDO passw...
 
Where to Learn More About FDO _ Richard at FIDO Alliance.pdf
Where to Learn More About FDO _ Richard at FIDO Alliance.pdfWhere to Learn More About FDO _ Richard at FIDO Alliance.pdf
Where to Learn More About FDO _ Richard at FIDO Alliance.pdf
 
WebRTC and SIP not just audio and video @ OpenSIPS 2024
WebRTC and SIP not just audio and video @ OpenSIPS 2024WebRTC and SIP not just audio and video @ OpenSIPS 2024
WebRTC and SIP not just audio and video @ OpenSIPS 2024
 
TopCryptoSupers 12thReport OrionX May2024
TopCryptoSupers 12thReport OrionX May2024TopCryptoSupers 12thReport OrionX May2024
TopCryptoSupers 12thReport OrionX May2024
 
Using IESVE for Room Loads Analysis - UK & Ireland
Using IESVE for Room Loads Analysis - UK & IrelandUsing IESVE for Room Loads Analysis - UK & Ireland
Using IESVE for Room Loads Analysis - UK & Ireland
 
Working together SRE & Platform Engineering
Working together SRE & Platform EngineeringWorking together SRE & Platform Engineering
Working together SRE & Platform Engineering
 
TEST BANK For, Information Technology Project Management 9th Edition Kathy Sc...
TEST BANK For, Information Technology Project Management 9th Edition Kathy Sc...TEST BANK For, Information Technology Project Management 9th Edition Kathy Sc...
TEST BANK For, Information Technology Project Management 9th Edition Kathy Sc...
 
Introduction to FDO and How It works Applications _ Richard at FIDO Alliance.pdf
Introduction to FDO and How It works Applications _ Richard at FIDO Alliance.pdfIntroduction to FDO and How It works Applications _ Richard at FIDO Alliance.pdf
Introduction to FDO and How It works Applications _ Richard at FIDO Alliance.pdf
 
AI mind or machine power point presentation
AI mind or machine power point presentationAI mind or machine power point presentation
AI mind or machine power point presentation
 
WebAssembly is Key to Better LLM Performance
WebAssembly is Key to Better LLM PerformanceWebAssembly is Key to Better LLM Performance
WebAssembly is Key to Better LLM Performance
 
Your enemies use GenAI too - staying ahead of fraud with Neo4j
Your enemies use GenAI too - staying ahead of fraud with Neo4jYour enemies use GenAI too - staying ahead of fraud with Neo4j
Your enemies use GenAI too - staying ahead of fraud with Neo4j
 
Introduction to FIDO Authentication and Passkeys.pptx
Introduction to FIDO Authentication and Passkeys.pptxIntroduction to FIDO Authentication and Passkeys.pptx
Introduction to FIDO Authentication and Passkeys.pptx
 
Human Expert Website Manual WCAG 2.0 2.1 2.2 Audit - Digital Accessibility Au...
Human Expert Website Manual WCAG 2.0 2.1 2.2 Audit - Digital Accessibility Au...Human Expert Website Manual WCAG 2.0 2.1 2.2 Audit - Digital Accessibility Au...
Human Expert Website Manual WCAG 2.0 2.1 2.2 Audit - Digital Accessibility Au...
 
How Red Hat Uses FDO in Device Lifecycle _ Costin and Vitaliy at Red Hat.pdf
How Red Hat Uses FDO in Device Lifecycle _ Costin and Vitaliy at Red Hat.pdfHow Red Hat Uses FDO in Device Lifecycle _ Costin and Vitaliy at Red Hat.pdf
How Red Hat Uses FDO in Device Lifecycle _ Costin and Vitaliy at Red Hat.pdf
 
Secure Zero Touch enabled Edge compute with Dell NativeEdge via FDO _ Brad at...
Secure Zero Touch enabled Edge compute with Dell NativeEdge via FDO _ Brad at...Secure Zero Touch enabled Edge compute with Dell NativeEdge via FDO _ Brad at...
Secure Zero Touch enabled Edge compute with Dell NativeEdge via FDO _ Brad at...
 
Long journey of Ruby Standard library at RubyKaigi 2024
Long journey of Ruby Standard library at RubyKaigi 2024Long journey of Ruby Standard library at RubyKaigi 2024
Long journey of Ruby Standard library at RubyKaigi 2024
 

Cloud Services Essentials for CSPs from IBM

  • 1. Essentials for CSPs to Succeed with Cloud-based Services An Executive Brief Sponsored by IBM October 2010 1
  • 2. ESSENTIALS FOR CSPs TO SUCCEED WITH CLOUD-BASED SERVICES INTRODUCTION Cloud computing For many, cloud-based services represent a new way to do the same old things more delivers common efficiently and at lower cost. What this means is that enterprises offload data center ground among operations to a hosted Infrastructure as a Service provider. Independent Software application developers, Vendors offer scalable, pay-per-use subscriptions as an alternative to traditional packaged enterprises, suppliers software licenses. From this limited perspective, cloud services could be characterized as and customers, to create something similar to a high volume retailer’s business model: efficient operations yield a new set of service cost savings that are passed on to consumers. In other words, for many in the industry, offers that were never cloud services are a means for providing essentially the same old user experience but at envisioned, or possible, a better price. Can such a point of view really have merit? Stratecast believes there is in the past. an inherent problem with this perspective as we believe it minimizes the capabilities and opportunities represented by cloud computing, each of which involves innovation for services, business models, and technology delivery methods. In today’s world, business users, enterprises and entire industries demand technology solutions that improve productivity. Cloud computing introduces evolving service options created by the interaction among several partners and across multiple industries. In essence, cloud computing delivers common ground among application developers, enterprises, suppliers and customers, to create a new set of service offers that were never envisioned, or possible, in the past. This translates into a significant set of business requirements including: robust, high-performance networks; strong customer relationships; application delivery expertise; the continual infusion of innovation; customer-enabled self-service functionality; predictability of future customer needs; and flexible, integrated Operations Support Systems (OSS) and Business Support Systems (BSS). For Communications Service Providers (CSPs) that are launching new cloud-based services or considering entry into the cloud services marketplace, there is good news. Of all the players in the nascent cloud services market including hosting providers, IT service and equipment suppliers, over-the-top service providers and application providers, CSPs are best positioned to successfully deliver on the cloud computing vision. However, success will require most CSPs to initiate change in their services strategy, marketing approach, and their underlying service delivery (network and IT) architectures. It also sparks an evaluation of the way business is conducted and IT systems are used to address the concept-to-cash business processes. Partners must be embraced; technology must be integrated; and above all, customers must be given the flexibility to define the way services will best meet their needs. In this paper, Stratecast identifies the essentials a CSP must consider, to ensure a successful presence in the high-opportunity cloud-based services marketplace. October 2010 © 2010 Stratecast. All Rights Reserved. 2
  • 3. THE NEW BUSINESS WORLD As businesses turn to technology to solve their strategic issues, they increasingly make cloud computing a part of the solution. Industries that have embraced this concept include consumer electronics, media and entertainment, healthcare, textbook publishing, education as “distance learning”, government services, manufacturing, utilities and more. Through their cloud service offerings, CSPs have the power to help their enterprise A well designed cloud customers evolve their businesses to take advantage of the changing services strategy can communications marketplace, as they work to deliver a better experience for their place a CSP squarely in own customers. In fact, CSPs can play a central role in serving the marketplace with the middle of every cloud services. business need of every enterprise customer As shown in Figure 1, a common thread that runs within several industries is the need to within its addressable enhance the goods and services each can produce with capabilities from the market. communications marketplace, especially the mobile sector, to create new or improved customer-focused solutions. A second point is the dependence of these industries on CSPs to deliver a repeatable and cost-effective means to combine the communications- enabled products and services from one enterprise with those of another, where it makes business sense to do so. This is why a well designed cloud services strategy can place a CSP squarely in the middle of every business need of every enterprise customer within its addressable market. Figure 1 CSPs Have the Opportunity to Address Multi-Indust ry Business Models Source: Stratecast October 2010 © 2010 Stratecast. All Rights Reserved. 3
  • 4. ESSENTIALS FOR SUCCESS WITH CLOUD Cloud computing provides attractive alternatives with respect to what services can be delivered and how they are delivered, but cloud computing isn’t a “do it yourself” opportunity. Whether you have already launched a cloud portfolio, or whether you are still weighing options to determine the best approach, the following list of essentials will help ensure best positioning for future success. To achieve the highest level of success, take Getting Started time to develop a cloud services strategy that Invest Time in Developing a Cloud Services Business Strategy – The cloud supports your corporate services concept burst into the industry’s consciousness very quickly, and offers strategy. were speedily brought to market to capitalize on the hype. Unfortunately, many of the initial service offerings were delivered without the proper type of automation required for a sustained and consistent means to profitable monetization. Instead, these service offers relied on largely customized, labor-intensive ordering, installation, and billing processes that defy the precepts of cloud computing (i.e., low cost of delivery based on automation and standardization). Successful CSPs must adapt cloud service offers rapidly and seamlessly to address change in the market and in business practices. To achieve the highest level of success, take time to develop a cloud services strategy that supports your corporate strategy; addresses priority market segments where upside revenue potential may currently be dormant; and includes a solid foundation from which to launch and support such services. This foundation should include attention to people, processes, and technology, since the introduction of cloud services requires changes in each of these fundamental areas of the business to address dynamic market needs. Leverage Your Corporate Strengths – Cloud computing presents many opportunities to save and make money. In setting a cloud services strategy, you should determine which approach and business direction provides the best means to reach your target market. In general, your network and established OSS/BSS environment better positions you to deliver and manage end-to-end cloud services when weighed against other competitors such as data center-centric cloud providers. Your organization brings additional strengths including a recognized market brand, established customer relationships, skilled professional services teams, existing managed security, WAN optimization, application delivery services, and customer self -service portals. By building a strategy that leverages your corporate strengths, provides other service-specific differentiators, and simultaneously begins to address any known operational deficiencies that will get stressed upon launch of new cloud services, you will ultimately be more confident in your ability to meet your target customer’s business objectives and have a better chance of achieving the commercial success your organization seeks. Align Your Cloud and Traditional Services Offers – Cloud services should not be considered an entirely new line of business per se; instead they should complement your existing service offering lines. By adopting this approach, you can October 2010 © 2010 Stratecast. All Rights Reserved. 4
  • 5. leverage your market knowledge and in-house expertise as you launch your cloud portfolio. For example, a CSP that focuses on the consumer market should resist targeting business customers with its cloud offers. CSPs that already have a hosting or co-lo business should consider expanding with complementary cloud Infrastructure as a Service offers. A CSP that differentiates with its end-to-end application delivery capabilities should provide a managed cloud solution that includes application delivery, security, and performance guarantees – but only if the If you build your own supporting OSS and BSS can address such needs. proprietary solution you Choose Partners That Can Help You Grow – Launch of and support for cloud will likely find yourself services isn’t a “go-it-alone” model. If you build your own proprietary solution you at a competitive will likely find yourself at a competitive disadvantage as market conditions change or disadvantage as market as customer needs become more complex. Instead, involve IT industry leaders that conditions change or as can introduce you to a relevant set of innovative application and services partners customer needs become that can also deliver an evolving supply of new services and applications for your more complex. customers. Select business oriented technology partners that have extensive and long -standing IT knowledge, particularly in the data center area, in addition to OSS BSS industry domain knowledge so they can work with you to establish a robust, and highly scalable cloud services environment. They should also be charged with ensuring such new business functions are integrated with existing processes and systems. Finally, they must have the insight to help you capture the innovation from application partners to bring diversity to your service portfolio and to enable your sales force, care representatives, and Web portal to sell, manage and support new services once put into play. Harnessing the power of the ecosystem is paramount in the cloud services world so don’t underestimate the importance and impact to the business of selecting the best partners most able to enrich your service portfolio. Automation is Essent ial for Suc cess Invest In an Integrated Cloud Services Management Platform – Cloud computing is about automation and standardization. In many cases, your organization is only part of the end-to-end service offering. As the network connectivity supplier, among other things, you are best equipped to manage the complex services encompassing the means from multiple suppliers brought together under a cloud service offer. This is why you can be at the heart of every business need of every one of your customers with the help of a centralized management control platform. Such a platform will likely overlay your existing OSS BSS environment but will be enabled to handle the business relationship needs between applications, services, content suppliers, your business processes, and end customers. It will have enough flexibility to support multiple customer environments (private data center, private cloud, public cloud). It will be highly automated so as to be a very low/no touch operation for achieving the attractive and sustainable profit margins that cloud services can deliver. It must integrate with your existing business and operations environment as seamlessly as possible, with a readiness for operation within weeks of project launch. October 2010 © 2010 Stratecast. All Rights Reserved. 5
  • 6. Consider a single supplier’s cloud service management platform as long as it is designed to meet key cloud-based business functions including: rapid partner enablement; automated resource provisioning; high transaction throughput performance and scalability; service lifecycle support; customer self-service especially for business customers who typically demand high levels of visibility and control; application and service search, review, selection, purchase, and delivery; integrated trouble management between your processes and other suppliers; wholesale and Such a platform will retail convergent charging; and service quality monitoring and management. likely overlay your existing OSS BSS Finally, be sure your installed OSS and BSS environment can address current network environment but will be connectivity service requests in a flow-through manner. Doing so will enable you to enabled to handle the meet the pay-as-you-grow expectations that most enterprise customers now have for business relationship cloud-based services, while minimizing your upfront investment and accelerating your needs between time to revenue. applications, services, Build Appropriate Security and Performance Specifications Into Your Service content suppliers, your Offers – In any shared environment, customers have major concerns about business processes, and application security, availability, and performance. If you plan to offer mission critical end customers. business applications, select a cloud service management platform with built-in security. Adjunct security offerings may not be capable enough to meet the stringent requirements that are likely to come from your largest and most important customers. For example, your platform should enable you to create service offers that are fortified with security components and strong Service Level Agreement (SLA) monitoring and enforcement mechanisms. Because customer needs vary, a flexible suite of cloud service selections will then allow customers to pick different security options (including data encryption, safeguards against unauthorized access, and protection from data loss or leakage) and performance SLAs (including availability, latency, and packet loss) according to need. Establish Automated Partner Processes – To help differentiate your brand, and for cloud services to remain competitively strong, application, service, and content partners require an easy means to interface between their software development environment and your cloud services management platform. As evidenced by the growth of App Stores for the mobile communications market, a rich and steady influx of new applications is the easiest way to demonstrate value to users, to keep them engaged, and to prevent churn. A developer-friendly way to add partner-provided content to an always available, always on network connection can shorten time-to- market; minimize re-coding through standard APIs and templates; and support conversion of certain applications for mobile access. Such actions will bring solid value to customers, and deliver profitable margins to all involved. Support On-Demand Customer Self-Care – A critical aspect of cloud services is flexibility, through automation, in delivering a meaningful service experience from the end customer’s perspective. Compared to the way things were just a few years ago, customers who have experienced interactive video, mobile TV, mobile banking, and distance learning have already gained an appreciation for automated and easy-to-use October 2010 © 2010 Stratecast. All Rights Reserved. 6
  • 7. self-service functionality. Your web portal should provide the end user with a similar way to find, buy and manage the service offers they desire. In essence, through integration with the cloud management platform, the search functionality should be optimized such that customers can find what they need and more of what they need including access to applications, storage, and computing capacity. It also must provide users with self-service tools such as policy-defined usability or financial controls for A critical aspect of managing their subscribed services. cloud services is Your customer self-service portal should allow your organization to capitalize on flexibility, through cross-sell or up-sell opportunities by automatically offering targeted, personalized automation, in recommendations for logical companion apps and services that the user is likely to delivering a meaningful buy based on analysis of service adoption and usage patterns captured about other service experience from users. It means offering customers spontaneously created service bundles that fit the end customer’s their unique needs, by bringing to bear the entire service portfolio and allowing a perspective. certain amount of user involvement in combining multiple service options into packages based on pre-established pricing policies. Most importantly, the “behind-the-scenes” functions to enable this customer-facing simplicity are not likely to come from existing systems and business processes for any of the standard operations functions including ordering, fulfillment, assurance and billing, since they were never designed to address most of the on-demand needs cloud services require. Success will come from flexible systems that can interface with existing business functions and that will deliver the functionality to address all of the requirements from this new breed of services. Managing and Monetizing the I nvestment Rely on Business Analytics – A successful cloud strategy will anticipate the future while addressing current customer needs. Tools are now available to optimize business insight about key market segments and to gain an understanding about which services provide high customer value and high margin for your organization. Tailoring up-sell and cross-sell offers based on customer usage trends, service adoption patterns, social networking analysis and insight from other data sources, both historical and real-time, are available today from leading vendors with business intelligence and analytics applications. Such focus is essential in a cloud-enabled future where you will, over time, offer potentially hundreds of thousands of new services. In this environment, business involves cross-industry and closer partner/ supplier collaboration, machine-to-machine communications, and a deeper level of customer defined service and account management. Analytics tools enable you to stay on top of changing customer needs, dynamic applications and the evolving services marketplace. This is important for anticipating new business opportunities and to shape marketing or sales strategies according to actual or anticipated customer demand. Enable Your Sales Force – A cloud service management platform will enable new services and hence sales opportunities in a myriad of ways. Part of the equation for October 2010 © 2010 Stratecast. All Rights Reserved. 7
  • 8. success involves breathing new life into existing service packages through real-time on-demand pricing options. Cloud services can expand your organization into new markets by combining services from two or more content suppliers, through a broadband connection, to create service options that previously were not possible. They can even enable partners or resellers to deliver your branded end-to-end solutions involving network connectivity, application availability and customer equipment as a simple package targeted to meet specific Small or Medium Enterprise Tools are now available (SME) business needs across multiple sectors as well as within such sectors as to optimize business education, retail, hospitality, and the professional services domain. Addressing these insight about key opportunities requires enhanced business processes, flexible systems and, market segments and to comprehensive training of all sales and support personnel in how to provide gain an understanding customers and prospects with the cloud services information they need to recognize about which services the business value supplied from such flexible service options. provide high customer In selecting a partner for executing your platform strategy, be mindful that a value and high margin technology-only partner will deliver the right technology components to place cloud for your organization. services into the competitive marketplace, but it will not necessarily provide help in ensuring commercial success once these services are in play. The larger IT vendors not only deal with the critical technology needs for implementing a cloud services strategy, but typically have sales training arms that will devise a program for you to equip your sellers and channels with the right knowledge to help ensure success with your targeted enterprise segments. October 2010 © 2010 Stratecast. All Rights Reserved. 8
  • 9. Stratecast The Last Word The communications industry is undergoing change at a monumental pace when compared with how business was conducted even just 10 years ago. Technology evolution and customer demand are driving new ways to satisfy wanting more for less and doing things faster, better and cheaper than ever before. Cloud services are an integral part of this process as they have enticed customers in all segments to embrace the new self-service procurement and management model within a world of ever-increasing information, entertainment, and communications-enhanced IT applications and services. Cloud computing is both a new service offer and a new way to provide services to a rising tide of customers – business enterprise and consumers. For the CSP community, cloud computing represents a new era for real-time service offers and real-time accountability for how customers use and pay for services, which often extends beyond the traditional walls of network connectivity. It also means embracing new business models to stay synchronized with changing market conditions. The largest business challenge to the global CSP community is in support for these new business needs because existing systems and processes were never designed to address real-time business operations or pay-as-you-grow business models. However, this challenge can be met by seeking cost-effective ways to augment existing systems and processes with flexible technology and business solutions that will drive the service creation and delivery environment to a lower cost structure while providing the opportunity to infuse innovation into the new services environment. Gaining customer attention in a crowded marketplace requires CSPs to seek a competitive advantage if they want to succeed in this evolving, dynamic, and increasingly competitive environment. For example, it requires a dedicated focus on directing your organization Karl Whitelock toward a new business and operating model while, at the same time continuing current .. operations to meet today’s business needs. Defining the right cloud services strategy is not Director Strategy – OSS/BSS Global Competitive the same for every CSP. Your strategy, and especially your business focus for supporting Strategies your customer base, must be different from other cloud operators. What is common is a Stratecast (a Division of Frost solid realization that cloud services are different from anything delivered in the past because & Sullivan) they intensify the dependence on all types of partners (business, application, technology). kwhitelock@stratecast.com As such, they will illuminate the weaknesses that current systems and processes display. Customer demand for more innovative services with increasing complexity will only intensify over time. Lynda Stadtmueller The cloud services evolution is here to stay. Are you competitively tuned to your Program Manager – customer’s needs? In this new world, working with a trusted partner for both IT and Business Communication business management issues may seem like age-old advice. However, when it comes to Services changing business models, real-time processes, and deepened external partner interactions, Stratecast (a Division of Frost you need to count on the proven capabilities of an organization that can help bring all of the & Sullivan) important elements of service creation, management and monetization together for gaining lstadtmueller@stratecast.com the competitive advantage you need to succeed. Cloud computing is quickly becoming the new business reality. The real question is: will you be ready when customers ask for help? October 2010 © 2010 Stratecast. All Rights Reserved. 9
  • 10. Silicon Valley 331 E. Evelyn Ave., Suite 100 Mountain View, CA 94041 Tel 650.475.4500 Fax 650.475.1570 San Antonio 7550 West Interstate 10, Suite 400, San Antonio, Texas 78229-5616 Tel 210.348.1000 Fax 210.348.1003 CONTACT London US 4, Grosvenor Gardens, London SWIW ODH,UK Tel 44(0)20 7730 3438 Fax 44(0)20 7730 3343 877.GoFrost Beijing myfrost@frost.com Bengaluru http://www.frost.com Bogotá Buenos Aires Cape Town Chennai Delhi Dubai Frankfurt Kolkata Kuala Lumpur London Manhattan ABOUT STRATECAST Melbourne Stratecast assists clients in achieving their strategic and growth objectives by providing critical, objective Mexico City and accurate strategic insight on the global communications industry. As a division of Frost & Sullivan, Milan Stratecast’s strategic consulting and analysis services complement Frost & Sullivan's Market Engineering Mumbai and Growth Partnership services. Stratecast's product line includes subscription-based recurring analysis programs focused on Business Communication Services (BCS), Consumer Communication Services (CCS), Oxford Communications Infrastructure and Convergence (CIC), OSS and BSS Global Competitive Strategies Palo Alto (OSSCS), and our weekly opinion editorial, Stratecast Perspectives and Insight for Executives (SPIE). Paris Stratecast also produces research modules focused on a single research theme or technology area such as IMS and Service Delivery Platforms (IMS&SDP), Managed and Professional Services (M&PS), Mobility and Rockville Centre Wireless (M&W), Multi-Channel Video Programming Distribution (MVPD), and Secure Networking (SN). San Antonio Custom consulting engagements are available. Contact your Stratecast Account Executive for advice on São Paulo the best collection of services for your growth needs. Seoul ABOUT FROST & SULLIVAN Shanghai Singapore Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best- Sydney in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to Tel Aviv drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan Tokyo leverages 49 years of experience in partnering with Global 1000 companies, emerging businesses and the Toronto investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com. Warsaw TLE03002-USEN-00