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Cloud Computing Presents Value Opportunities

Cloud computing is increasing in popularity among consumers and businesses as it provides a cost effective option to on-demand, pay-as-you-go software, developer platforms and storage capabilities all delivered over the Internet. As this trend continues to grow, it is putting increased pressure on bandwidth capacity, while also creating new revenue opportunities.

To make the most of such opportunities in delivering IaaS, PaaS and

SaaS, network providers should consider switching enterprise hosted services to provide or virtual private clouds. Not only do such environments offer better margins, they can also provide for easier management. In addition, these network providers can develop valuable partnerships with application and content providers seeking carrier-grade capabilities to enhance their cloud services.

As cloud computing offers a full range of cost and use benefits to the end user, there are still obstacles in place that are keeping some from migrating to this platform. Concerns abound surrounding security and privacy as many companies want to be sure information in the hands of cloud computing suppliers is safe. At the same time, they want to know if cloud services are meeting local, regional and national regulations.

Control is an issue for some as enterprises may want to maintain control over users, applications and resources. Reliability and availability are always a priority and many are asking questions about whether or not the Internet can handle the challenges of high volumes of diverse traffic. In addition, cloud computing is a form of outsourcing and it could threaten the existing structure and jobs within the enterprise.

Even with such challenges, cloud computing is being adopted and network providers are facing growing opportunities to capitalize on this movement. In fact, according to research provided by

Alcatel-Lucent, 80 percent of cloud computing opportunities over the next three years lie in switching current enterprise-hosted services to private or virtual private clouds.

Network providers will be able to increase their revenues through non-traditional partnerships with application and content providers (ACPs) to combine the speed and innovation of the Web with the strengths of the network. ACPs will continue to look for ways to enhance their services, control delivery and ensure quality.

As network providers will be able to provide this and more, they will enable new cloud applications that can incorporate presence and location information to make new services more useful and meaningful to end users, while they also maintain privacy and a higher degree of personalization.

The movement to cloud computing is more than just a trend – is a complete change to the way in which companies do business and consumers access content, contacts, information and so much more. Those network providers who jump on board to capitalize on these opportunities will be able to achieve leadership in this space and enjoy greater revenues and healthy margins.

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