|By Mohammed Sha||
|July 5, 2011 08:00 AM EDT||
For as much buzz as cloud computing is generating in the telecom industry these days, it has created an equal number of questions. Many of these have to do with the complex and demanding application of cloud in relation to business support systems. The following are seven questions regarding cloud billing that my colleague, Fiona Fulton, and I addressed during a webinar (Billing Brightens in the Cloud) and follow up podcast conducted with TM Forum.
1. Is Cloud really being adopted by operators around the world?
The short answer to this is, absolutely. While cloud may not be seeing the traction of some forms of technology, like 4G, it has outpaced others, like fixed mobile convergence. There has been a lot of attention paid to cloud and many major telecom operators – including Deutsche Telekom, AT&T, Verizon, British Telecom, and France Telecom, to name a few – have already rolled out cloud-based service offerings. It may have taken a while for this particular cloud to rain down, but it is certainly being adopted.
2. What’s the difference between the existing billing system and billing in private cloud?
This is a question we get asked quite a lot. It might be helpful to first explain the difference between private and public cloud. A private cloud is really a dedicated cloud environment for a single enterprise. They have complete control over that resource, and it’s theirs to do with as they wish. A public cloud is a cloud resource that’s shared between all paying users. Because of the shared nature of the public cloud it is more difficult to demand certain levels of latency and availability and discuss SLAs with your provider. This is why people don’t think that public cloud is going to be used for billing services. While this may be true today, I think we may see that opinion change as we move into the future and cloud technology advances.
As for the difference between existing billing systems and billing in a private cloud, it really comes down to the way you’re deploying the system. In an existing billing system, you deploy on dedicated hardware. In a private cloud environment you’re going to deploy in a virtualized environment. By deploying in the cloud, what you are really doing is maximizing the use of your hardware resources. This virtualization layer allows you to do lots of things with dynamic management and the dynamic allocation of resources, which helps maximize the use of your resource and drives down your costs.
3. Do cloud services really need sophisticated billing models?
Yes. If you look at the consumer business models that we might see for cloud, they seem very simplistic on the surface, and there’s a good reason for that. Consumers don’t like things to be complicated. When they don’t understand what they are paying for, they get frustrated and start to call customer care. But behind the scenes there needs to be a higher degree of sophistication. Certainly at the consumer level billing systems will need to be able to seamlessly facilitate complex service bundles. The SLA and QoS requirements of the wholesale and partnership models will also give way to enhanced sophistication. Basically, you’re going to see the same levels of sophistication that telco’s have built up in their traditional service being applied to cloud.
4. Margins are expected to be tight for cloud. The more flexibility we build into the billing systems, the more operations cost we have and the lower the margins become. Yet, you strongly suggest telcos run out and grab a share of this market. Why?
This is a very, very good question, and one not just specific to this opportunity. Any venture comes with its own set of risks. The only thing that does not have any risk is doing nothing. Most businesses would rather be active and take the risk to build a strong positioning than sit idle.
In cloud, just as in other opportunities such as M2M, the margins are extremely low and the revenue opportunity is limited. However to be a player in the market, you have to have a sound portfolio of offerings for two reasons: 1) to establish and secure your competitive positioning within the market; and 2) to add a level of “stickiness” to your offerings. Specifically for the SMB and enterprise sector, it’s important to have really strong and appealing offerings. Indeed, you will have the challenge of balancing that strategic positioning with tight margins and the need to maintain low costs, but you can combat these issues by finding relevant solutions and infrastructure deployment models that are able to help you achieve a decent margin.
5. How will different systems like mediation, CRM, and billing interact in the cloud environment? Do all systems need to be deployed in the same cloud?
These systems are going to have to continue to interact in the same way they do today. Cloud is not about recreating the application it’s about deploying it in a different way. Whether systems need to be deployed in the same cloud really comes down to factors such as latency, availability and security. If you look at a tightly coupled system like mediation and a rating engine, for example, the latency and the need for communication is very tight. You can’t have a 10 second delay between those two systems. So, it really comes down to your own cloud infrastructure to determine whether or not you can deploy these systems in different clouds. Will your latency be good enough? Will your ability to communicate between systems be good enough? In many cases, the answer may be, no. But, if you look at something like CRM, where the communication isn’t so immediate, it’s much more feasible that this system could be sitting somewhere else. It really comes down to the organization to look at the cloud infrastructure it has in place to see what’s possible within that infrastructure.
6. How can offering cloud services reduce customer churn?
By offering cloud-based services telcos stand a very good chance of improving revenues. However, as I stated before, margins will be small and the revenue benefit is going to be limited. The significant benefit of offering cloud services will be seen in improved brand positioning within the target market, and this will have a considerable impact on reducing churn. Just as triple- or quad-play offerings have a higher rate of customer retention when compared to the individual service offerings, operators who include cloud-based services in their portfolios will have an edge with a new bundling opportunity to provide SaaS access alongside their telecommunications services. The bundling effect would help customer stickiness for the traditional services whilst increasing revenue from the cloud services.
7. Is there any implication of cloud on mergers and acquisitions in the telecom sector?
Actually, I think cloud should actually enable smoother mergers when compared to non-cloud infrastructures. It should be easier to move subscribers of one company to the other’s systems residing in cloud, because these cloud-based systems are not only scalable, but they also provide open interfacing technologies that allow easy access to data enabling migration. On the other hand, non-cloud-based systems force the acquirer to maintain the two subscriber bases separate for a considerable amount of time, which leads to long delays in realizing the benefits of these acquisitions.
In high-production environments where release cycles are measured in hours or minutes — not days or weeks — there's little room for mistakes and no room for confusion. Everyone has to understand what's happening, in real time, and have the means to do whatever is necessary to keep applications up and running optimally. DevOps is a high-stakes world, but done well, it delivers the agility and performance to significantly impact business competitiveness.
Dec. 21, 2014 07:00 PM EST Reads: 1,114
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 21, 2014 06:00 PM EST Reads: 2,703
ScriptRock makes GuardRail, a DevOps-ready platform for configuration monitoring. Realizing we were spending way too much time digging up, cataloguing, and tracking machine configurations, we began writing our own scripts and tools to handle what is normally an enormous chore. Then we took the concept a step further, giving it a beautiful interface and making it simple enough for our bosses to understand. We named it GuardRail after its function - to allow businesses to move fast and stay sa...
Dec. 21, 2014 02:30 PM EST Reads: 1,160
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
Dec. 21, 2014 02:00 PM EST Reads: 3,039
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 21, 2014 01:00 PM EST Reads: 2,578
SYS-CON Media announced today that Sematext launched a popular blog feed on DevOps Journal with over 6,000 story reads over the weekend. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Sematext is a globally distributed organization that builds innovative Cloud and On Premises solutions for performance monitoring, alerting an...
Dec. 21, 2014 01:00 PM EST Reads: 1,130
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
Dec. 21, 2014 11:30 AM EST Reads: 3,129
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
Dec. 21, 2014 11:00 AM EST Reads: 2,625
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
Dec. 21, 2014 11:00 AM EST Reads: 2,762
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada...
Dec. 21, 2014 10:00 AM EST Reads: 2,705
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Dec. 21, 2014 10:00 AM EST Reads: 2,772
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
Dec. 21, 2014 08:30 AM EST Reads: 2,920
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...
Dec. 21, 2014 06:30 AM EST Reads: 2,569
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
Dec. 20, 2014 11:00 PM EST Reads: 2,056
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
Dec. 20, 2014 11:00 PM EST Reads: 1,933
AppZero has announced that its award-winning application migration software is now fully qualified within the Microsoft Azure Certified program. AppZero has undergone extensive technical evaluation with Microsoft Corp., earning its designation as Microsoft Azure Certified. As a result of AppZero's work with Microsoft, customers are able to easily find, purchase and deploy AppZero from the Azure Marketplace. With just a few clicks, users have an Azure-based solution for moving applications to the...
Dec. 20, 2014 09:00 AM EST Reads: 1,669
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 20, 2014 08:00 AM EST Reads: 2,209
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
Dec. 20, 2014 05:00 AM EST Reads: 2,124
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 19, 2014 11:45 PM EST Reads: 2,119