Telco Data Centers Need a Cloud Computing Makeover

Data center resources need an overhaul in order for network operators to make a serious run at cloud computing and XaaS delivery, says Light Reading Insider

Dec 10, 2009

Network operators need to revamp their data center resources to make a serious run at delivering cloud computing and XaaS to corporate customers, but finding the right technology partner for that makeover will be a big challenge, according to the latest report from Light Reading Insider (, a paid research service of TechWeb's Light Reading (

Cloud Computing & Telco Data Centers: Coping With XaaS examines the extent to which the leading data infrastructure vendors have the hardware, software, skills, and knowledge to support network operator cloud computing initiatives. It maps the end-user services that different cloud computing models can support, highlights where demand for those services is coming from, and provides real-world examples of how providers are using optimized data center infrastructure as a foundation for cloud service provision. The report also looks at what's next in cloud computing technology innovation and competition, and profiles the five leading data center infrastructure vendors looking to support network operators' cloud computing ambitions.

  For a list of companies covered in this report, please see:

"Given the complexities involved in building and optimizing cloud architectures, few suppliers can claim to provide every piece of the puzzle, and all rely on partnerships with other vendors to a greater or lesser degree," says Martin Courtney, research analyst with Light Reading Insider and author of the report. "But that has not stopped industry heavyweights from placing considerable marketing muscle into convincing interested parties that they can design, implement, and manage data center infrastructure to support cloud computing initiatives on their customers' behalf."

Along with finding the right enabling technologies, network operators need to find trusted partners to provide strategy and consulting services to make the transition to XaaS provider, Courtney says. "In addition to physical infrastructure resources around hardware and software, network operators need expert advice on where cloud computing fits within the wider spheres of IT and telecommunications, the type of services that are in demand, and how they can migrate to cloud computing architecture with minimum disruption to existing operations," he notes.

Key findings of Cloud Computing & Telco Data Centers: Coping With XaaS include the following:

  --  Network operators looking to harness the cloud should look to optimize
      and re-architect data center infrastructure, processes, and
  --  Enterprise demand for services and applications delivered via private
      and hybrid clouds is growing.
  --  Vendors are making it easier for network operators to develop new
      cloud applications using PaaS, bundled software stacks, and cloud
      operating systems.
  --  Competition for enterprise cloud customers is about to get fierce, as
      the barriers to market entry diminish.
  --  Increased interest and activity in the cloud space will prompt greater
      urgency around standardization and compliance efforts.

Cloud Computing & Telco Data Centers: Coping With XaaS is available as part of an annual single-user subscription (12 monthly issues) to Light Reading Insider, priced at $1,595. Individual reports are available for $900 (single-user license).

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  About Light Reading

Founded in 2000, Light Reading ( is the leading online media, research, and focused event company serving the $3 trillion worldwide communications market. is the ultimate source for technology and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. Light Reading's research arms, Heavy Reading and Pyramid Research, provide the most comprehensive communications research, market data, and technology analysis in close to 100 markets around the world. Light Reading produces nearly 20 targeted communications events including TelcoTV, Ethernet Expo New York and Ethernet Expo London, The Tower Summit @ CTIA, and Optical Expo, as well as focused one-day events tailored for cable, mobile, and wireline executives. Light Reading was acquired by United Business Media in August 2005 and operates as a unit of TechWeb.

About TechWeb

TechWeb (, the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 13.3 million* business technology professionals actively engage in our communities created around our global face-to-face events Interop, Web 2.0, Black Hat and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise,,, and The Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet Magazine, MSDN Magazine, Wall Street & Technology magazines. TechWeb also provides end-to-end services ranging from next-generation performance marketing, integrated media, research, and analyst services. TechWeb is a division of United Business Media, a global provider of news distribution and specialist information services with a market capitalization of more than $2.5 billion.

  * 13.3 million business decision-makers: based on # of monthly connections

  About United Business Media Limited

UBM (UBM.L) focuses on two principal activities: worldwide information distribution, targeting and monitoring; and, the development and monetization of B2B communities and markets. UBM's businesses inform markets and serve professional commercial communities - from doctors to game developers, from journalists to jewelry traders, from farmers to pharmacists - with integrated events, online, print and business information products. Our 6,500 staff in more than 30 countries are organized into specialist teams that serve these communities, bringing buyers and sellers together, helping them to do business and their markets to work effectively and efficiently. For more information, go to

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CONTACT: Dennis Mendyk, Managing Director, Insider Research Services,

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