The natural fit of Cloud with Telecommunications

Winning in a new game through new business models

As an industry, Telecommunications has been wandering in the mist that is Cloud for the past 18 months. Now, the mist is starting to clear. The industry is beginning to see what Cloud really means to its future success. The good news is that communications service providers can stop considering the Cloud as the end goal, and start pursuing specific Cloud-enabled business moves that can generate substantial growth in revenue and profit.

Cloud is a continuation of the virtualization trend that has been underway for over 15 years. The trend has now reached a tipping point where Cloud can create and deliver business value. Business value can be created in three main areas:

A wide variety of players is rushing to exploit these business opportunities in the new evolving Cloud ecosystem. Over-the-top (OTT) providers (for example, Google and Amazon), system integrators, pure Cloud providers and many others seem eager to grab a slice of the Cloud pie. Also, Communications Service Providers (CSPs) have recognized Cloud as a source of new revenues. A number of them have made offering Cloud-based services to clients an integral part of their business strategies.

As providers of connecting networks, CSPs have a unique advantage over other players in the Cloud marketplace and can play a key role in value creation on the back of Cloud technologies. Though only a handful of CSPs generate significant value from Cloud services today, it is now their time to reap the benefits.

Download the complete IBM Institute for Business Value study

About the authors

  • Bob Fox

    Global Telecom and Media & Entertainment Industry Consulting Leader

  • Rob van den Dam

    Rob van dem Dam

    Global Telecommunications Industry Leader, IBM Institute for Business Value

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