This document discusses whether telecom companies should become cloud providers. It outlines some potential benefits, such as leveraging existing investments in data centers and networks, defending existing franchises from competitors, and preserving customer relationships. However, it also notes challenges like meeting enterprise-grade service level agreements and avoiding vendor lock-in. In conclusion, the document advises telecom companies not to rely solely on cloud computing and to maintain a diverse portfolio of services and business models.

1. Telecoms and the Cloud:
Does it Make Sense?
Issue 1
www.alanquayle.com/blog
© 2011 Alan Quayle Business and Service Development

2. 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
© 2011 Alan Quayle Business and Service Development 2

4. We’ve been here
many times before.
Ridiculous hype!
Believe don’t think!
Then reality hits!
Is Cloud Computing
any different?

6. 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.
Cloudosauras Will history
repeat itself?

7. There’s only one way
from the top!

8. Why Be a Cloud Provider?
Huge datacenters cost 5-7X less for computation, storage, and
Make a Lot of
networking. Fixed software & deployment amortized over many users.
Money
Large company can leverage economies of scale and make money.
Leverage Existing Web companies had to build software and datacenters anyway. Adding
Investments a new revenue stream at (hopefully) incremental cost.
What happens as conventional server and enterprise apps embrace
Defend a
cloud computing? Application vendors will want a cloud offering. For
Franchise
example, MSFT Azure should make cloud migration easy.
Attack an A large company (with software & datacenter) will want a beachhead
Incumbent before someone else dominates in the cloud provider space.
Leverage For example, IBM Global Services may offer a branded Cloud
Customer Computing offering. IBM and their Global Services customers would
Relationships preserve their existing relationship and trust.
Become a
Facebook offers plug-in apps. Google App-Engine…
Platform

9. 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.

10. Telco’s Enterprise – Consumer Pendulum
Consumer Enterprise
• 65’s:
Mainframes in Data Centers
75’s: • Enterprise drives Tech Awareness
ISDN Telephony
1st Gen. Remote Home Workers
• 80’s:
PC on corporate desktop
90’s: • IT education of working
Multimedia PCs, Cell Phones generation
Digital Kids, Consumerization IT • 2005’s:
Cloud Computing/SaaS
2010’s: • Tech. Populism, Pay/Use, Web 2.0
Managed Devices, Media
Convergence • 2015’s:
Managed Desktops, X-Internet Enterprise 3.0
Collaborative Business Models
Cloud federated master data and
Innovators distributed business transactions
 Converged Personas 
Mass Adoptors
Consumer  Specific Personas  Enterprise

11. 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 ITaaS Vertical / M2M, 20+
Services applications inc. MS, Sage, SAP
AT&T IaaS, PaaS Synaptic Hosting / Compute,
Oracle
T-Systems IaaS, SaaS SAP, Dynamic SAP

12. Mind the SLA Gap!
Data Center SLA
MPLS SLA

13. Beware Lock-In

14. Workloads ready for Cloud Computing
• Analytics • Desktop and devices
– Data mining, text mining or – Desktop
other analytics – Service/help desk
– Data warehouses or data • Development and test
marts
– Development environment
– Transactional databases
– Test environment
• Business services • Infrastructure
– Customer relationship – Application servers
management
– Application streaming
(CRM) or sales force
– Business continuity/
automation
disaster recovery
– E-mail
– Data archiving
– Enterprise resource planning
– Data backup
(ERP) applications
– Data center network capacity
– Industry-specific applications
– Security
• Collaboration – Servers
– Audio/video/Web – Storage
conferencing – Training infrastructure
– Unified communications – Wide area network (WAN) capacity
– VoIP infrastructure

15. Conclusions
Business
Applications Mobile CRM
Analytics Data
Center
VPN
Email
Infrastructure Desktop
Software
Its what your mother told you, “Don’t put all your eggs in one basket”