Carriers that cede control of their own data centers will be disadvantaged in the competitive battle against OTT providers, according to experts interviewed for a Light Reading Prime Reading report.
To remain competitive, telcos need to provide the kind of cloud-based value-added services that require total control over data center functions and facilities. Otherwise, carriers will become bit pipes, offering a commodity service at lowest cost: Most carriers will be unable to stay in business on those terms.
So for some telcos, it will be a case of do or die.
Huge competitive pressures from OTT providers such as Google (Nasdaq: GOOG), Amazon.com Inc. (Nasdaq: AMZN), and Facebook are weighing on the traditional communications service providers: The OTT giants run their own data centers, and there are plenty of reasons why telcos should do the same.
To compete effectively with the OTTs, carriers need to optimize their networks for services such as security, content optimization and optimal use of radio frequency. To deliver those services competitively, carriers need to run their own data centers.
And it seems that most of you, the Light Reading community, agree: More than half of the more than 1,400 people who voted in our recent poll on the topic believe carriers should own and operate their own data centers. (See Poll: Telcos Should Operate Data Centers.)
For more reasons why carriers should to run their own data centers, read our Prime Reading feature, Telco Data Centers: 7 Reasons Carriers Should Run Their Own Facilities.
And because this is a controversial topic, we'll soon give you the other side of the argument -- reasons why telcos shouldn't host their own data centers.