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Cloud Services: The ‘$40Bn/year’ Telco 2.0 Agenda

Cloud Services offer a c.$40Bn p.a. opportunity for CSPs by 2014 and are a key focus for Telco 2.0’s Research Programme and Executive Brainstorms (Palo Alto - April 5-6, London - May 11-12, Singapore - 22-23 June 2011). Here is our agenda, covering our key hypotheses and questions for industry strategists, marketing, commercial and technical leaders developing or assessing Cloud Services.

Introduction - The Cloud and the Communications Service Provider

Cloud computing is one of the buzzwords of the year - everyone from NASA to Wikileaks is keen to move into the cloud as fast as possible. Providing infrastructure services at very high scale with strong reliability guarantees while charging by volume sounds very like a classic CSP business. In many ways, the PSTN is the original cloud. This also plays into STL Partners’ enduring focus on SMB and enterprise markets - essentially 100% of cloud computing is sold to ‘upstream’ customers of one kind or another, as an input into their business processes.

Telco 2.0’s Cloud research stream has recently explored these issues in an analyst’s note, “The Cloud: Identifying Telco Opportunities.”

We’ve also reviewed the many different ‘X-as-a-Service’ Cloud varieties, from Infrastructure-a-a-S (reselling data centre space to enterprises) to Software-a-a-S (selling software based services to SMEs and applications customers) as nicely articulated in this video presentation from the recent EMEA Brainstorm Making Sense of ‘Cloud / xAAS’: Seven Clear Examples.

Telco 2.0 Initiative Objectives

In the Cloud sessions at the H1 2011 Brainstorms, we will be further exploring the issues and where areas of opportunity for CSPs exist.

We will also be looking at the interaction between cloud computing and other elements of the Telco 2.0 agenda, notably developer communities, subscriber data, and bandwidth on demand. Major drivers of cloud usage in enterprises are rapid applications development, and scaling (up and down) applications usage volumes, according to work at past Telco 2.0 events.

In addition, in our Cloud Services research programme, we will be analysing and benchmarking the most successful and innovative cloud applications, particularly among CSPs.

Telco 2.0 Hypotheses:


  • There is a nontrivial market opportunity for CSPs in Cloud Services. Delegates at the last Telco 2.0 Executive Brainstorm converged on a rough figure of $40bn a year.

  • As cloud providers, CSPs have certain key assets that differentiate them from the IT-world competition.

  • The core CSP product is still connectivity, and the key assets cluster around it. CSPs have control of network assets and also of a geographical footprint that permits them to provide an ADN or Application Delivery Network analogous to a CDN.

  • However, a major driver of cloud adoption is the developer community “voting with its feet”. An unexpectedly strong result from the last Executive Brainstorm was the value that several presenters had derived from using cloud computing as a rapid-prototyping tool.

Key questions to debate:

  • What are the lessons from the best telco Cloud Services examples / case studies?

  • What are the key Cloud Services opportunities in SME and Enterprise Markets?

  • Should an innovative interoperable “Application Delivery Network” (ADN) be developed for Cloud Services?

  • If so, what needs to be done to deliver the ‘ADN’?

  • What are the key pricing structure options for Cloud Services and when are they most appropriate?
Presenters and Panellists

Short stimulus presentations x 3 (from representatives from the Communications, Media and Technology industries), followed by debate with participants using our ‘Mindshare’ interactive technology, followed by a panel discussion.

Next Steps

Follow these links to learn more and join the H1 Telco 2.0 Executive Brainstorms and Research programme:


  • Americas Executive Brainstorm, 5-6 April 2011 (here);

  • EMEA Executive Brainstorm, 11-12 May 2011 (here);

  • APAC Executive Brainstorm, 22-23 June 2011 (here);

  • Telco 2.0 Research Programme (here).

Alternatively, please contact us on +44 (0) 207 247 5003 or email us at contact@telco2.net.

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