Smart pipe strategy puts new services in value chain

Keith Willetts, TM Forum
03 Jun 2010
00:00
 
Because of these intrinsic synergies, TM Forum is working hard to ensure that our new program on managing services and the initiative on managing cloud computing services don't stray too far from each other. If you look at the whole cloud concept -- or what the techies would call a service-oriented architecture -- it's really this whole area of reusable capabilities that are exposed through a standard set of interfaces.
 
We're seeing software giants like Microsoft and Oracle spend serious bucks in the cloud space, and an increasing number of service providers are getting on the bandwagon. While many people think cloud computing services are a flash in the pan, I think they're here to stay because of the business freedom they afford companies that embrace the concept.
 
Cloud computing is really a fancy term for outsourcing, where companies decide what they are able to do in-house and what they are willing to pay someone else to do, whether it's handling billing, customer care, content and apps or something else. It allows the provider to have much more freedom over how it organizes and sets up its business.
 
The ultimate example of a provider that has embraced this concept is Bharti Airtel, the largest mobile provider in India, with more than 124 million subscribers. Bharti is generally recognized as the first mobile phone company in the world to essentially outsource everything except for its marketing and sales. You heard right. Bharti has no network -- it is supplied and managed by Ericsson. It has no IT -- that's managed by IBM, along with its billing. In essence, Bharti Airtel is a virtual business.
 
This concept is nothing new. People run entire businesses on eBay without any real infrastructure of their own. But this idea of a cloud-based virtual business means providers are no longer under pressure to have expertise in all parts of their business under their own roof.
 

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