Welcome!

Java IoT Authors: Greg Schulz, Daniel Khan, Liz McMillan, Teridion Blog, William Schmarzo

Related Topics: @CloudExpo, Java IoT, Mobile IoT, Linux Containers, Containers Expo Blog, SDN Journal

@CloudExpo: Article

The Telco Cloud Opportunity

The emergence of cloud and intelligent networking are drivers of even more rapid change requirements

The cloud ecosystem for information technology today is an interesting mix of companies, products and solutions. Information Communications Technology (ICT) refers to the convergence and expansion of telecommunications with information processing and storage. In short, ICT and the cloud mean a combination of compute, storage and network, running a variety of applications.

These resources have been commonly located on premise by businesses, ranging from a few racks of equipment in a room for small businesses to football-field size facilities for large companies. Separately owned data center facilities, called Multi-tenant Data Centers (MTDC) enable organizations to augment on premise resources by placing equipment in a rented MTDC space without owning the facility.

Figure 1: The Cloud Ecosystem

The cloud business model changed these dynamics by adding a new source and business model for data center resources, available over the wide area network, on an on-demand basis. As the cloud brings added emphasis to both the access network and the inter-data center network, carriers have not only added their network expertise to the ecosystem but have also added cloud services.

The cloud Infrastructure as a Service (IaaS) market is dominated by a select number of global enterprises, with the market as a whole growing steadily since 2010. 451 Research market data shown in Figure 2 represents revenue from 53 IaaS vendors and 37 telcos, with the telcos accounting for 16 percent of the revenue ($207 million) in 2011. EMEA accounts for approximately 24 percent of the cloud market and has the same dominant cloud providers, although many local in-country cloud providers are emerging.

Figure 2: Total IaaS Market Forecast ($M)

The telco companies are clearly involved in the cloud, but are they positioned properly as the market continues to expand from IaaS and Content Delivery Networks (CDN) into software defined "everything" as a service? Given the opportunities outlined above, it's a good bet that the business strategy personnel at every carrier are hard at work exploring this question for strategies that best fit their organizations. The following strategic focal points across the organization might be useful to frame this business opportunity.

  • CEO - Grow through innovation. New on-demand services such as IaaS, Network as a Service (NaaS) and Network Function Virtualization (NFV) provide new ways to monetize and leverage physical network infrastructure. Telcos can expand the portfolio with new dynamic performance-on-demand billing options linked to applications and cloud services. Improved customer operation builds loyalty and reduces churn.
  • CFO - Monetization. The emergence of cloud forces more emphasis on developing on-demand network services. Telcos need to model this new business by including a customer and traffic forecast, capital and operation expense impact, new costs such as software licenses and a service revenue forecast. The resulting analysis needs to show a positive return on investment in a reasonable amount of time.
  • CTO/Operations - Intelligent network architecture. The cloud model means the communications infrastructure needs to change by offering better scalability, programmability and application awareness. The network, especially the access and inter-data center network, becomes an equal participant in cloud services with compute and store. Similar to how the World Wide Web browser unlocked the Internet, the service delivery network needs to be simplified to dramatically expand usability.
  • Sales/Marketing Go-to-Market - Performance-on-demand. Virtualizing the network infrastructure with software defined networking (SDN) enables efficient partitioning of resources to multiple users and accessing the right network capabilities for their applications. Application performance is now driven by policy with a network strategy enabling quick, efficient, and economical workload deployment. Cloud operations and workload orchestration can request and schedule network resources without understanding the network complexity. New solutions can be available combining cloud services and network for a premium service level agreement. New network services can drive the expansion of cloud use cases for workload mobility and fundamentally change ICT operations, which in turn will drive a broader base of service revenue.

Summary
Telcos have evolved services from fixed line telephony and business circuits to mobile, and to data and Internet services. The emergence of cloud and intelligent networking are drivers of even more rapid change requirements and offer an opportunity for telcos to take their place as an important market participant. The on-demand cloud network, SDN intelligence and the ability to virtualize network functions provide new technologies for the telcos that will mean change, yet is within their potential.

More Stories By Jim Morin

Jim Morin is a Product Line Director working in Ciena’s Industry Marketing segment. He is responsible for developing and communicating solutions and the business value for Ciena’s enterprise data center networking and cloud networking opportunities. Prior to joining Ciena in 2008 he held roles in business development and product management for several high technology storage and networking companies in Minneapolis.

Jim holds an MBA from the University of St. Thomas and a BA from the University of Notre Dame. He recently served on the Commission on the Leadership Opportunity in US Deployment of the Cloud (CLOUD2).

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
ReadyTalk has expanded the capabilities of the FoxDen collaboration platform announced late last year to include FoxDen Connect, an in-room video collaboration experience that launches with a single touch. With FoxDen Connect, users can now not only engage in HD video conferencing between iOS and Android mobile devices or Chrome browsers, but also set up in-person meeting rooms for video interactions. A host’s mobile device automatically recognizes the presence of a meeting room via beacon tech...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
On Dice.com, the number of job postings asking for skill in Amazon Web Services increased 76 percent between June 2015 and June 2016. Salesforce.com saw its own skill mentions increase 37 percent, while DevOps and Cloud rose 35 percent and 28 percent, respectively. Even as they expand their presence in the cloud, companies are also looking for tech professionals who can manage projects, crunch data, and figure out how to make systems run more autonomously. Mentions of ‘data science’ as a skill ...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
“delaPlex Software provides software outsourcing services. We have a hybrid model where we have onshore developers and project managers that we can place anywhere in the U.S. or in Europe,” explained Manish Sachdeva, CEO at delaPlex Software, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.