February 3, 2012

Planning for Cloud Services from Telecommunications Service Providers

The widespread adoption of cloud computing presents a tremendous opportunity for Telecommunications Service Providers to leverage their networks, data centers, existing customer relationships and other business assets to generate significant new revenue streams derived from delivering public cloud computing services to enterprises of all sizes.

The first step that a service provider should take in planning for a rollout of cloud computing services is to prepare a detailed, multi-year, rolling business plan that outlines both their cloud computing strategy as well as their data center architecture and implementation strategy.  The second step is to simultaneously engage in ongoing conversations with potential customers and potential suppliers of key enabling technologies.  The third step is to update and adjust their rolling cloud computing business plan in an iterative fashion.  Each iteration or phase of the business plan is based in part on the service provider's ongoing conversations with potential customers and suppliers and in part on the desire and the ability of the service provider to leverage wherever possible the technology base and market adoption of the previous phases.  

One of the goals of this white paper is to create an outline for a cloud services business plan and to identify and discuss some of the major topics that should be included in the plan.  It is expected that service providers will modify this outline for use in their environment.  Another goal of this white paper is to identify some of the input that needs to be gathered from both customers and suppliers in order for service providers to be able to update their business plans in such a way that they continually reflect the realities of the burgeoning marketplace for public cloud services.

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As is well known, led by companies such as Salesforce.com and Webex, the SaaS market is large and growing. As is also well known, led by companies such as Rackspace, the market for commodity storage and compute services is good sized and growing.

What is not well known, however, is what comes next. This paper gives a detailed overview of how the public cloud computing market will likely evolve and creates an outline for how service providers can plan for the deployment of new services. This outline strikes a balance between the need to experiment in an emerging market and the need to leverage synergies wherever they exist.

The primary audience for this white paper is service providers who are looking to expand their cloud computing service offerings. The secondary audience for this white paper is enterprise IT organizations who are interested in knowing the types of cloud computing service offerings that they can expect to see being introduced into the market over the next two years.

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