How Do You Make it Rain in the Cloud?

Peter : On Rad's Radar?
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

How Do You Make it Rain in the Cloud?

Here at Microcorp's One-on-One event, I moderated a panel this morning about various cloud services with Level3 (CDN), Cbeyond (Virtual Servers), Intercall (Microsoft 365/Linc), EarthLink (Security), and PAETEC (Visual Messaging). It's an eclectic mix, but that should tell you that there are many ways to leverage this thing called CLOUD to make money.

The Cloud is really a value for IT services. It's about leveraging the technology and the technical skill set of another company in order to let the business focus on their own finctionality, instead of the tech that might help the business operate.

The move to the Cloud by carriers is due to the lack of margin growth in the primary business of access. It's moving up the OSI stack from Layer 1 (wireless, copper, fiber) to Layer 3 (Internet) to Layer 7 (Apps). As we have learned with the iPhone, people use apps. Apps drive traffic. So if you go after the apps and move them into a data center (into the Cloud!), then you make it possible for the business to have access to that data 24/7 from any where with many devices - laptops, smartphones, etc. That's the trend in the marketplace.

Just to simplify Cloud for you: email, anti-virus, websites (hosting), Salesforce, Amazon Web Services, Google Apps, Gmail, Hosted PBX, conferencing (GoToMeeting, Webex), Skype - are all examples of cloud applications. 

The three things driving the cloud trend: ubiquious broadband, the economy, and the fast paced technology space.  The economy means that companies have to do more with less (less people and less money). It means that there is cost cutting. Broadband is available in most places - DSL, cable modem, 3G, 4G, WiMax, LTE, satellite, wi-fi. This means you can get access to your data and apps (Gmail, Google Apps, Dropbox, whatever) from any where. Finally, the technology is changing so fast that by the time you install it, the tech is probably almost obsolete. Cloud apps means that you lessen CAPEX and upgrades (like with Microsoft software) are taken care of my the service provider.

There's revenue here. Either you be the one to have the conversation with your customers or someone else will. And they will get those commodity services like broadband, T1 and PRI after they get the cloud services.

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