8/2/2019 210 Opinion

1/2

Send your contrbuton to the editor-in-chief at mats.thoren@jgcommunication.se

58 EBR #2 2010

Justthe mentionof cloud computing can spur passionatedebate over everything from how to define it to whether the

model will move the IT industry forward or set it back. Yet even as argu-

ments rage about whether cloud computing is a major advance or an

inherently insecure delivery model, uncertain economic times are driving

businesses attracted by the promise of radical cost

reductions to take a serious look at where it could fit in

their organization.

The attraction is obvious. After all, what business

wouldnt want a lower-cost, more flexible IT service

alternative to conventional hosted or insourcing models

that still allows a level of control over deployment?

IT professionals are therefore looking at handing over

the keys to the kingdom to a third party. But displace-

ment isnt the only concern; IT administrators grapple

with questions about security, transparency, compli-

ance, stability and performance. However, serious long-

term IT budget constraints are forcing even the most

reticent into the on-demand sector.

The near-universal appeal of lower-cost technology

services at a time of deep financial cuts is expected to only fuel market

growth. Merrill Lynch estimates cloud computing services will generate

USD 95 billion in revenues by 2011.This demand for operational expenditure-based services represents

a tantalizing opportunity for IT providers that are able to deliver high-

performing managed solutions. However, trepidation about the stability

and security of the cloud puts intense pressure on providers to deliver

on the promise of the model.

characterizingthe cloud

So what does this model involve? There are probably nearly as many

definitions of cloud computing today as there are companies selling

products and services in this space. However, the US National Institute

of Standards and Technology (NIST) has produced a comprehensive list

of the elements involved. These include:

On-demand self-service: automation limits human intervention around

provisioning, and allows customers to access cloud content from any

device

Resource pooling: multi-tenant architecture improves efficiency and

reduces costs

Rapid elasticity: IT services can be deployed quickly and customers pay

only for what they use

Measured service: resource utilization is optimized

automatically

NIST also defines three general service models:

Infrastructure as a Service (IaaS): The customer can

provision processing, storage, networks and other basic

computing resources. The customer does not have any

direct control over the underlying cloud environment

but can administer operating systems, storage, or other

resources where the customer is able to deploy and

run arbitrary software, which can include operating

systems and applications.

Platform as a Service (PaaS): The provider supplies the

end customers with a hosted environment from which

they can access applications created by the provider

and third parties using tools supplied by the provider.

Software as a Service (SaaS): Clients access application software via

any number of devices through an interface such as a web browser. Inthe NIST definition, cloud services can be delivered using one of four

deployment models:

Private Cloud: the cloud infrastructure supports a single customer

Public Cloud: multiple customers share the same environment

Community Cloud: multiple organizations with a common interest

share the same cloud infrastructure

Hybrid Cloud: the cloud infrastructure consists of multiple connected

clouds that share resources (more about cloud definitions, see

page 56)

thelayofthe land

Drawn by the promising growth potential, any number of companies

are jockeying for position in the cloud from conventional software

Dont enter the cloud aloneis there room n the cloud for operators or will integrators dominate? The answer comes down to how

successful carriers are in both capitalizing on the strengths of their own infrastructure and in putting together

productive partner alliances.

oPinion

aMy DeCarlo

...operators are at adisadvantage withrespect to higher level

services or cloud

computing deployments

that rise above the

foundational IaaS layer

or involve the connection

of multiple clouds.

8/2/2019 210 Opinion

2/2EBR #2 2010 59

companies to traditional hosting providers. For telecom

operators facing declining profit margins for voice serv-

ices, there is a particular urgency about moving to

on-demand service delivery. This pressure is increasing as

customers push them to deliver core services using a

model that allows for more self-service provisioning and

pay-for-use options.

However, telecom operators face a myriad of challenges

as they look to make their presence known in the cloud,

not least that many customers think of them as suppliers

of commodity communications services, not solutions that

are tightly integrated with key corporate applications.

This is unfortunate because operators are particularly

well-suited to play a role in the cloud that effectively lever-

ages their network and data center assets, along with the

reach these resources give them. Operators also often have

an installed base of customers who might be inclined to invest in solu-

tions, such as utility computing, delivered through the cloud.

However, operators are at a disadvantage with respect to higher-level

services or cloud computing deployments that rise above the founda-

tional IaaS layer or involve the connection of multiple clouds.

Most telecom operators, even those with substantial application

hosting skill sets, lack market credibility when it comes to the mostambitious and potentially lucrative cloud services agendas. And it

is these that generate the large-scale engagements covering strategic

business areas.

Enterprise customers are more likely to seek out IT providers with appli-

cation development and integration expertise, and vertical industry

knowledge for help with strategic cloud initiatives.

powerin numbers

This is where partnerships come into play but not superficial marketing

relationships. Operators need close collaborations with IT solution

providers that marry the application development and integration exper-

tise, and vertical skill set of a traditional integrator with their own scale

and networking skill set. Investing in these kinds of alliances can help

telecom operators engage better with the market by

developing and deploying cloud services quickly.

In these relationships, the telecom operator may

maintain a lower profile while the integrator partner

has the primary role in building the business case

for the cloud and helping deploy it.

Telecom operators do provide more than simply a set of data center

facilities and a pipe to the end user. Operators give customers access to

a highly efficient virtual environment through a portal, supplying

resources that run the gamut from firewalls and load balancers to the

servers themselves.

Partners can create particular use cases such as dynamic network

provisioning that allow customers to quickly set up and then tear downa cloud environment that can be used to support effective project

collaboration or initiatives built around the customers specific corpo-

rate objectives.

While integrator partners can help a telecom operator establish its

credibility in the space, the operator can differentiate itself from rivals on

the basis of the flexibility and stability of its service delivery and the

breadth of its ISV partner ecosystem. Operators can take a page from the

books of Microsoft and Google, which are building up significant

networks of software and hardware suppliers, and create a much more

high-functioning environment that provides customers (or even part-

ners) with the tools and applications they need for particular tasks.

The cloud, after all, is vast. No one company can successfully go it

alone in this space.

amy laRsen decaRlo wks s Pincip ans,

security nd Dt Center service t mrket intelligence

firm Current anlyi. she pplie 17 yer experience in

cving h It indus ssss h mngd It sv-

ices sector with a particular emphasis on security and

dt center olution delivered through the cloud includ-

ing on demnd ppliction, unified communiction nd

collbortion, nd mnged torge offering. she cn be

chd adecarlo@currentanalysis.com