There are several trends in the cloud market that service providers and telcos must embrace; calling for an alignment of business strategy. Here are three of these trends:
Hybrid cloud
This approach means companies can pick and mix private and public clouds, place workloads in the cloud based on how well they fit, share workloads on multiple public clouds and scale up or down as needed. Our view is that hybrid cloud is a means to moving all workloads eventually to the cloud. You can see our thoughts here. Business Cloud News suggests that hybrid cloud has been held back to date, but that a “strong backing for open application programming interfaces (APIs) and multi-cloud orchestration platforms is making it far easier to integrate cloud services and on-premise workloads alike. As a result, we will continue to see hybrid cloud dominate the conversation.”
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Cloud scalability concerns the ability of a cloud system to scale, and the cost and performance implications of doing so. As any cloud system is made up of a multitude of components, cloud scalability raises two questions:
Scalability issues thus result in a maximum size and an optimum size (where the cost of providing service is lowest).
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Latest figures from IDC show that revenue from public cloud infrastructure sales grew by almost 26 percent to $4.6 billion in the third quarter of 2015, beating private cloud infrastructure sales, which grew 18.8 percent.
Key stats include:
Recently I came across another service provider that is just now thinking beyond IaaS and how to position for the cloud. In 2016, I’m surprised this is still the case especially given the size of the market. By 2017 the public cloud services market is predicted to exceed $244B. There is a huge cloud service opportunity out there and one that you need to position your business to take. Check out our infographic which offers key statistics and advice for taking advantage of this market opportunity.
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Previously we blogged about why telcos in the cloud can be ugly. We showed that there are common reasons why they haven’t fully seized the opportunity. First, telcos focus on network ownership rather than the needs of the existing captive customer base. Next, the telco culture can be prohibitive.
Today we want to talk about the good side of telcos in the cloud. The UK and U.S. SMB cloud services market could be worth more than $22 billion to UK and U.S. service providers collectively. Even better, the market is untapped and willing to participate.
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