What Role Should Service Providers Play in Cloud Computing?

Next Generation Communications Blog

What Role Should Service Providers Play in Cloud Computing?

By David Sims
According to a recent white paper by Alcatel-Lucent, cloud computing is changing the way consumers and businesses purchase and use a wide range of computing capabilities. It also presents new business models for service providers to consider.
"For decades, hardware and software have typically been installed at the end users' premises - and on individual computer devices," the paper finds, adding that "now cloud computing offers a different approach: Applications, platforms and infrastructure are available on demand by using the Internet to connect end users with online services."
And although application and content providers were the first to become active in the cloud computing marketplace, the paper discovers "a growing number of network providers are now launching - or announcing - new cloud services."
As an example, one Tier 1 operator now offers enterprise services in more than two dozen countries across the globe: "The offerings include on-demand virtualized infrastructure with service level agreements, rapid support and management of off-the-shelf applications."
There are advantages to being a service provider when it comes to cloud computing, the paper concludes:
Trusted relationships. Network providers assign dedicated teams to work with an enterprise throughout the lifecycle of a product or service, beginning with sales and continuing through after-sales service and support. These collaborations can provide the enterprise with greater control over purchasing processes and increased responsiveness to their unique needs, including 24/7 service support.
Reliable operations that scale. While some application and content providers maintain services in a "perpetual preview" state (i.e., beta), network providers carry out extensive testing and certification processes before services are launched.
Service level agreements with real impact. Network providers also offer truly "meaningful" service level agreements. That is, they are supported by clear metrics, regular performance monitoring - and financial penalties if the SLA standards are not met.


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