& cplSiteName &

Is the Cloud Eating the World?

Jason Meyers
6/18/2014
50%
50%

CHICAGO -- Light Reading's Big Telecom Event 2014 -- Heavy Reading senior analyst Caroline Chappell kicked off a panel on enterprise cloud services here at BTE by invoking a popular Marc Andreessen quip: "Software is eating the world."

"Even physical products have been designed and manufactured with the help of software, and now the most-used products on the planet are based on software," Chappell said. "That's driving this massive need for an agile infrastructure -- an infrastructure that's managed by software.”

That sentiment set the stage for a spirited discussion about the importance of cloud services -- in particular whether telecom network operators are best equipped to provide those services to enterprises.

The general consensus of the panelists was that the combination of network ownership, service delivery capability and customer familiarity do make telecom service providers the best cloud providers.

"There’s no doubt in my mind that telcos that have access to both network and cloud resources really have a leg up," said Nirav Modi, director of software innovations for Cyan Inc. "Customers are worried about their experience when they stream the movie or send a large file. Telcos can control that experience."

The panelist representing the voice of the cloud provider concurred that when it comes to the cloud, network ownership and the ability to manage cloud services is what gives service providers that edge over the Amazons of the world.

"Being a pure-play hosting provider is becoming less and less viable," says Chris Nicolini, senior vice president of data center operators for Windstream Communications Inc. (NYSE: WIN) "If you buy cloud services from Amazon you still have to manage them. We'll meet the customers wherever they want to be met."

Panelist Shauli Rozen, director of product strategy for Amdocs Ltd. (NYSE: DOX), supported the notion that network operators have the best insight into customers' cloud needs, adding that one of the things enterprises often want from their cloud providers is to hand off the hassle -- which is, after all, the idea behind the concept of managed services.

"CIOs want control over experience, but they don't want to know every nitty-gritty detail about the service," he said. "They want to have the carrier manage it for them."

Lane Patterson, vice president of cloud platform engineering for Symantec Corp. (Nasdaq: SYMC), was, not surprisingly, very focused on the security aspects of enterprise cloud services. "The key to the maturity of the cloud," he said, "is about earning trust -- about getting the trust of the CIO, and in some cases a broader compliance community."

Despite the agreement among panelists that service providers are in a good position to serve the enterprise with cloud services, Rozen of Amdocs said many of them still have to prove to the CIOs of the world their business focus.

"Most carriers still make their money from consumers -- selling voice and data to consumers," he said. "Making the shift to enterprise -- and being able to operate the cloud for enterprises -- is a huge challenge.

— Jason Meyers, Contributing Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Infostack
50%
50%
Infostack,
User Rank: Moderator
6/20/2014 | 6:43:27 AM
The Emperor's New Clothes
Reading the articles from BTE and other recent industry symposiums reminds me of the parable of the Emperor's New Clothes.  

Everyday vendors and trade consultants trot the Emperor out and assure him how beautiful his new outfit will look.  And everyone else goes along for fear of rubbing his highness the wrong way.

The reality is that cloud economics from the core at every layer are eating the balkanized edge access providers; aka ISPs, MNOs and MSOs.  The current trend is network densification out to the edge to support rapidly developing 4K VoD, 2-way HD video collaboration, seamless mobile BB, and the internet of things markets.

The horizontal, digital, packetized train left the station 30 years ago and few have woken up to the fact.  Edge access providers need to restructure rapidly and imbue a culture that wakes up everyday and asks, "how do we provide more for less to more people across more contexts?" 

Because that's what the core application and content providers (OTT) are doing.  And they have the benefit of a complete and holistic view of demand ex ante.  That's like pitting a mobile army with cannon and telescopes up against a fortified castle; in other words sitting ducks and ultimately indefensible.
Educational Resources
sponsor supplied content
Educational Resources Archive
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 14, 1:00PM EDT
What Is Agile?
Kent J. McDonald, Product Owner, Agile Alliance
UPCOMING COURSE SCHEDULE
Friday, September 16, 1:00PM EDT
How to Implement Agile
,
Wednesday, September 21, 1:00PM EDT
What Is DevOps?
Colin Kincaid, CTO, Service Provider, Cisco
Friday, September 23, 1:00PM EDT
How to Implement DevOps
,
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (2) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
Cisco Developing 'Monica' Digital Assistant
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/22/2016
VoLTE Can Drive 4G Small Cells Adoption
Ravi Narayanan, Senior Analyst – Cloud & Next Generation Mobile Networks, Heavy Reading, 8/18/2016
'Most Wanted' Kobi Comes Home
Ray Le Maistre, Editor-in-chief, 8/23/2016
Rocket Fiber Lights Up Detroit With Gigabit
Elizabeth Miller Coyne, Managing Editor, 8/22/2016
Arista Banned From Importing Products – Cisco
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/23/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
Animals with Phones
Live Digital Audio

Bridging the tech skills gap is a major challenge for service providers and suppliers alike today – and the challenge is two-fold when it comes to increasing the number of women in the comms space. Level 3 Communications has made it a priority to overcome both challenges by implementing several unique programs focused on building the right candidates from within – in addition to filling the funnel by supporting STEM and other education programs. During this radio show, you’ll learn about these programs from Mary Beth McGrath, SVP of Global Talent Management at Level 3, and the best ways to bridge your own skills gap so that you are motivated and equipped for change. Plus you’ll have the chance to ask Mary Beth your questions live on the air.