Cloud services by telcos face roadblocks: Report

Telcos are yet to reap more success in the cloud computing services domain. Find out what an independent analyst has to say about cloud services by telcos.

Cloud services offered by telcos are marred by significant challenges when it comes to supporting and selling, this despite the fact that they are fit enough to garner success in the ever-increasing cloud computing services market, according to an independent telecom analyst, Ovum’s report.

Ovum labels the operational hurdles faced by telcos as ‘significant’ that prove to be a roadblock for the success of cloud services.

Mark Giles, Ovum analyst and author of the report, says: “Much has been made of the potential for telcos to leverage existing assets, such as their communications networks, data centers, OSS and BSS systems and existing customer relationships, to offer cloud services to enterprises. However, while telcos’ assets do provide them with some key advantages over other cloud services providers, there are a number of significant challenges that they face.

“Besides a perceived lack of brand identity in the supply of IT services, obstacles such as bringing internal network and IT teams together, enabling sales teams, and ensuring that OSS (operations support system) and BSS (business support system) can deliver on cloud services’ on-demand nature, must be overcome,” Giles says.

He further states that the pace of innovation required for cloud services is different from traditional network services and requires telcos to reduce their time to market. “While this is a challenge for the back-office, it also raises questions as to how telcos price and monitor the profitability of the cloud services,” he says.

A joint branding, marketing and even sales partnership with an existing IT services player to maximize their potential impact in the cloud services market should be considered by telcos as a possible remedial measure, as per the report.

“In addition to helping them overcome their internal operational challenges, a partnership can help telcos to expand their number of sales channels and profit from an association with a premium IT services brand,” Giles adds.

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