The CSP Opportunity for Cloud Computing Services (OT00084-009)© Ovum (Published 01/2012)Page 2This report is a licensed product and is not to be photocopied
opportunity to position themselves as a one-stop shop for SMEs across a broad range of businessapplications via an SaaS model. Communications-based SaaS solutions, often now referred to asCaaS (communications as a service), will become an important component of the SaaS market for all CSPs.IaaS will be a key component of the proposition for most CSPs entering the cloud computingmarket and this places great demands on the infrastructure, management systems, portals, andbilling processes. Leading global CSPs went early to market with IaaS offerings and have largelybuilt the cloud environment in-house using best-of-breed vendors for individual components. Thiswas a lengthy process, and it was common to spend 18 months and considerable resource to geta solution to market and further time to realize the full capabilities of cloud computing with a self-service portal and automated provisioning. Time to market is now key and fortunately CSPs goingto market with cloud computing today can greatly reduce this time through close vendor technology partnerships and adoption of a converged infrastructure.
The cloud computing model is already demonstrating its potential to transform thedelivery of enterprise IT. However, despite the hype, some important components of the market are still at an early stage of development, and this represents an importantopportunity for CSPs to gain market entry before growth steps up a gear. While theearly movers in the CSP community launched their first cloud computing offerings upto three years ago, new CSP market entrants still have an opportunity to introduceservices and establish their market presence while the market is still in an earlygrowth phase.
CSPs have an important opportunity in the provision of cloud computing services tobroaden and deepen their enterprise customer relationships. However, enabling anddelivering cloud computing services is a complex undertaking, and CSPs that arecontemplating a cloud computing proposition should have very clear objectives anddraw on the considerable industry expertise that is available to new players to securesuccessful and early market entry.
Local/national CSPs have a role to play alongside the regional/global serviceproviders that have been early movers in the market. Local/national CSPs can play anumber of roles in the market for cloud services, including that of trusted supplier of enterprise-grade services to SMEs and national enterprises and/or as a provider of wholesale cloud services to other CSPs and channel partners.