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Service Provider Cloud

Enterprise Cloud Tortures Telcos

AUSTIN, Texas -- Big Communications Event -- Y'all are making things hard on telcos.

Enterprises are expecting the same flexibility and rapid service from carrier networks that hypercloud providers offer for compute and storage. And carriers are straining themselves to meet the demand.

Until recently, enterprises needed connectivity from hundreds of locations at most, and those locations were offices. Now, the proliferation of cloud services, mobile devices, Internet of Things and more mean enterprises have thousands or even hundreds of thousands of endpoints demanding connectivity, Roman Pacewicz, AT&T Business Solutions senior vice president for offer management and service integration, said at a panel this week.

And historically, carrier networks aren't set up to meet those demands.

Virtualization is the answer, providing networks with the flexibility to meet enterprise demands. But enterprises still demand legacy technologies, and uniting old and new technologies exacerbates enterprise difficulties.

Find out more about service providers' enterprise cloud challenges, and how they're dealing with them, on our sister site, Light Reading: Enterprises Demand On-Demand Networks.

— Mitch Wagner Follow me on Twitter Visit my LinkedIn profile Visit my blog Friend me on Facebook Editor, Enterprise Cloud News

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[email protected] 5/18/2017 | 11:02:14 AM
Transition Mitch it is a careful dance moving customers off their old technology to impact their overall ability to function effectively in the short term and the long term there is often cost resistance and fear of lost jobs. Ultimately its a case by case basis since some companies are still entrenched in legacy systems that the unhooking and migration would be an enormous expense. the best solution for some is a gradual migration plan that addresses the issue without too much sticker shock in the short term!
Phil_Britt 5/18/2017 | 1:41:03 PM
Re: Transition Maryam is right that there is a two-fold process in leaving legacy technology -- new technology must be shown that it works much better, and corporate thinking (including top managers and top employees) need to change corporate culture/corporate strategy.

New technology often means elimination of jobs, so there will always be resistence from employees who don't have convertible skills or can't be easily trained to work in the new environment.

Another hurdle in adopting new technology is the amount paid for the legacy tech and the expected lifespan -- accountants/financial executives tend to resist change until old tech is fully amortized.
[email protected] 5/18/2017 | 5:47:47 PM
Re: Transition Very true especially in the US where quarterly reporting drives so many companies.
Phil_Britt 5/18/2017 | 6:00:17 PM
Re: Transition You're absolutely correct. Too many times short-term results outweigh what makes long-term sense. It's almost a no-win situation. Investors will punish those stocks that underperform. But there are times companies have to bite the bullet for a quarter or more to make those investments that will pay off (in terms of better revenues or in sharply reduced costs) in the future.
[email protected] 5/22/2017 | 5:22:23 PM
Re: Transition Phillbrit it's almost like American investors have created a short-term infrastructure and then complain when companies can't compete in a rapidly evolving environment. There needs to be an understanding of investment for growth and competition long term.
Phil_Britt 5/22/2017 | 5:54:50 PM
Re: Transition You're right about the short-sightedness of American investors and companies. However, there are firms like Amazon and Netflix that prove that there are times to forego short-term profits and the investor and the company won't have to wait too long for long-term benefits.
Joe Stanganelli 5/22/2017 | 8:42:31 PM
AMZN as your cell carrier? Honestly, at this point, I think it's a really good bet that tech/cloud giants like Amazon will wind up entering the telco space -- and easily dominate.
Joe Stanganelli 5/22/2017 | 8:43:21 PM
Re: Transition @maryam: Well, that's the thing about investors.  You're only as good as your last quarter.
[email protected] 5/23/2017 | 11:24:59 AM
Re: Transition Joe and it creates so many issues here for companies. We cycle through CEO because of quarterly results rather than looking at performance holistically. In European companies, there are not married to this reporting cycles and it creates more market and company stability
Mitch Wagner 5/23/2017 | 3:24:03 PM
Re: AMZN as your cell carrier? The hypercloud providers have the agility, and clout. 

But why would they want to enter the telco space? There's no money in it. 
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