& 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
From The Founder
Light Reading sits down at CES with the head of Cisco's service provider video business, Conrad Clemson, to discuss how NFV and cloud security relate to video, the challenge of managing 4K/8K traffic, the global expansion of Netflix and virtual reality.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Huawei Video Resource Center
TeliaSonera: Striving for Independence

2|12|16   |     |   (0) comments


Peter Lagergren discusses the importance of decoupling the network from services.
LRTV Huawei Video Resource Center
Ken Wang on U-vMOS

2|12|16   |     |   (0) comments


Ken Wang discusses how video will take of the traffic on carrier networks and become a basic service to provide to end users.
LRTV Documentaries
All Change in Video

2|11|16   |   33:12   |   (1) comment


At this moderated panel at 2020 Vision in Dublin, Alan Breznick, Cable/Video Practice Leader of Light Reading, sits down with Jeff Finkelstein, director of network architecture at Cox Communications, to discuss the rapidly changing video market.
LRTV Custom TV
Hosting in Ireland, Past & Present

2|10|16   |   16:07   |   (0) comments


Garry Connolly, president of Host in Ireland, presents the keynote at Light Reading's 2020 Vision Executive Summit in Dublin.
Women in Comms Introduction Videos
What's Hot in Mobile Commerce?

2|10|16   |   12:18   |   (1) comment


Claire Maslen, financial services relationship manager at the GSMA, talks about the development of the digital commerce sector and the types of relationships that mobile operators are developing to further their m-commerce strategies.
LRTV Documentaries
EANTC Tests Nokia IP Routing & Mobile Gateway VNFs for Real World Deployment

2|9|16   |   5:08   |   (1) comment


Nokia obtained validation of its virtualized router and virtualized mobile gateway capabilities through rigorous testing performed by EANTC. The results set a new industry benchmark for outstanding performance, scalability, resiliency and manageability. Nokia VNFs are ready for telco cloud deployment, so that service providers can accelerate mobile, business and ...
Between the CEOs
CEO Chat With Level 3's Jack Waters

2|8|16   |   26:15   |   (1) comment


Light Reading CEO and founder Steve Saunders sits down with Level 3 Communications' CTO Jack Waters to discuss hot topics like virtualization, 4K and the future of telecom...
LRTV Custom TV
The Composable Telco

2|8|16   |   24:46   |   (0) comments


Heavy Reading's Principal Analyst Caroline Chappell presents the keynote at Light Reading's 2020 Vision Executive Summit in Dublin.
LRTV Custom TV
Join Us at the Digital Operations Transformation Summit

2|4|16   |   03:52   |   (0) comments


The Digital Operations Transformation Summit on February 21, 2016 at the Crowne Plaza Barcelona Fira Centre will bring together 50 senior executives to engage in a unique debate on the opportunities and challenges presented by the transformative evolving digital landscape. RSVP now at events@lightreading.com.
LRTV Custom TV
Making the Test: ADVA Ensemble Connector vs. Open vSwitch

2|4|16   |   01:28   |   (0) comments


Light Reading, in partnership with EANTC, recently tested ADVA's Ensemble Connector, which replaces open vSwitch and offers carrier-grade capability and interoperability. The test results strengthen ADVA's credibility as a provider in the virtualization space.
LRTV Custom TV
Bridging the Gap Between PoCs & Deployment in NFV

2|4|16   |   31:50   |   (0) comments


Charlie Ashton of Wind River presents the keynote at Light Reading's 2020 Vision executive summit in Dublin.
Between the CEOs
CEO Chat With Mike Aquino

2|3|16   |   17:34   |   (0) comments


The former CEO of Overture Networks, Mike Aquino, discusses why truly open virtualization solutions provide service providers with the greatest choice.
Upcoming Live Events
March 10, 2016, The Cable Center, Denver, CO
April 5, 2016, The Ritz Carlton, Charlotte, NC
May 23, 2016, Austin, TX
May 24-25, 2016, Austin Convention Center, Austin, TX
All Upcoming Live Events
Hot Topics
Yahoo & Verizon Sitting in a Tree...
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 2/8/2016
Vodafone: Flexible Work Policies Boost Profits
Sarah Thomas, Editorial Operations Director, 2/8/2016
AT&T Lights Fire Under 5G, Plans 2016 Trials
Iain Morris, News Editor, 2/12/2016
Andreessen Facepalms on Facebook Free Basics
Mitch Wagner, West Coast Bureau Chief, Light Reading, 2/10/2016
It's Time to Integrate OTT Video
Alan Breznick, Cable/Video Practice Leader, 2/8/2016
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO and founder Steve Saunders sits down with Level 3 Communications' CTO Jack Waters to discuss hot topics like virtualization, 4K and the future of telecom...
The former CEO of Overture Networks, Mike Aquino, discusses why truly open virtualization solutions provide service providers with the greatest choice.
Live Digital Audio

Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and G.fast for copper plant evolution and the various deployment possibilities for FTTH/B.