Opinion: Confusing clouds and hot air

 

Should telcos stick to their knitting?

As telcos rush to the market with “cloud” offerings, David Havyatt suggests they need to focus on any-to-any connectivity and leave applications to others.

One of the recurring images in television coverage of climate change is of a coal fired power station with plumes of steam bellowing forth.  It is steam in that cloud, not carbon dioxide, but it doesn’t seem to bother the broadcasters.

It seems that telcos and the IT industry are getting to be just as careless in the imagery of “the cloud”.

Whether its AAPT’s Google-based hosted apps, Optus’ Cloud Solutions or Telstra’s ‘Network Computing’, there is a danger in labelling “cloud” what is effectively an online form of IT outsourcing.

The meaning of clouds

Telcos can perhaps be forgiven, since they have some claim to ownership of the term “cloud”.  It is derived from the diagram that has been used for decades now to represent “the part of the network the details of which are not under current consideration.” 

More recently the cloud has been labelled “the Internet”, but it originally was used to represent the PSTN. 

Customers like the banks have started to learn that buying an online outsourced solution is just the same as buying hardware and software, only the migration issue to the next solution might be harder rather than easier.  Learning about “cloud computing” contracts looks to be pretty timely!

It is understandable that the telcos think that anything on their side of the interface is “in the cloud.”  But the real concept of the cloud is much more powerful. 

The deeper concept of cloud computing is not one where the computing happens across the other side of a network boundary, but when the computing itself is dispersed through the network. 

Google itself is an example, with a vast global network of processors; but that is an entirely in-house model.

Tom Jenkins of content management software firm Open Text addressed a Committee for the Economic Development of Australia (CEDA) meeting in March on the topic “Managing Content in the Cloud – The key to creating competitive advantage in the digital economy.” 

I prefer the definition of Tom Jenkins of Open Text, who defines cloud content as essentially rich, mobile and social, not just somewhere else. 

The cloud entails the delivery of content and applications in a widely-dispersed manner with well-managed permissions that maximise availability without limiting security. 

The challenge of clouds

Hosted applications are just an alternative form of software ownership unless they come with tools to manage content in a collaborative fashion.  If you just want to save on software costs, use OpenOffice, not GoogleApps. 

But the challenge is creating that accessibility without at the same time being locked into the software environment of the vendor. 

Ultimately cloud computing rests on the ability to run end-to-end applications on the Internet, ideally with defined service quality and irrespective of the network carriers involved. 

 Cisco’s David Meyer told an IEEE conference in October 2008;

The lack of a reasoned approach to both the IPv4 run-out problem (data plane) and the growth of routing state (control plane) are life-threatening to the (end-to-end) Internet we all know and love

The first is the address space issue.  Current solutions to the IPv4 address run out that rely upon network address translation will disrupt end-to-end applications.  Telcos are at the forefront of telling policy makers not to worry, because telcos regard end-to-end applications as the enemy.

The second issue is harder to describe and to address, but ultimately revolves around the rate of increase of router tables.  Historically the problem has been solved by throwing more processing at it, but there are some who think there is now a need for a fundamental redesign of the network architecture. 

The question is - where should the telcos sit in all this? 

In 1960, Theodore Levitt wrote in the Harvard Business Review that telcos “let others take customers away from them because they assumed themselves to be in the railroad business rather than the transportation business.” 

Seldom has an idea been more passionately embraced by business executives.  No amount of invocation by management guru Tom Peters to “stick to the knitting” has dissuaded them – they want to stick to their craft and embrace crochet and macramé as well.

In particular, telecommunications providers want to variously describe themselves as in the “ICT business” or as “media-comms” companies.  But what consumers value in their telecommunications services is very rarely their content – but rather the ability to connect anything to anything, anytime and anywhere. 

I believe the telco’s focus needs to be on being in the telecommunications business.

It has been said in business that nothing happens until a sale is made.  Telcos need to promote the new message that nothing happens until data has been sent and received.

Should telcos see themselves as ICT businesses or should they focus on any-to-any connectivity?

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Opinion: Confusing clouds and hot air
"I think an examination of Telstra's current sales technique helps to fill in a missing link in your logic. For once, Telstra are selling very smart. They are approaching all their Colo and other ..."
By Griff
 
 
 
Comments: 4
vcirrus
Apr 4, 2011 9:31 AM
Here here! "Cloud" has been misused and abused with abandon for years now, to the point that it doesn't mean anything meaningful anymore. If more telcos, ISPs, colo providers / data centers focused on building reliable standard-based IaaS services we would all benefit. But in the desperate and frantic rush to draw profit from investment they are all desperately trying to find something that will drive traffic to their infrastructure while at the same time, the software companies (like Microsoft and Google) are doing the reverse - trying desperately to build infrastructure to support their software.

The end result - the cloud is dead!

http://vcirrus.bcde.com.au/blog/theendofthecloud
walteradamson
Apr 4, 2011 11:14 AM
Great article. I agree with your conclusion. Despite their wishful thinking the telcos are not the "natural owners" of cloud - or perhaps they are in the sense they understand it which is in the trivial sense you point out at the start of your article. But even in that trivial sense of "online outsourcing" there is nothing special they offer.

I'd probably go a bit further than you and say that if you use the intentions of Tom Jenkins definition then services like Google mail and Dropbox, used very often as examples of "cloud", would not qualify. Which is true, they don't. They are the things which are no different to before, which are not potential transformational to business, but the real cloud IS new and IS transformational. It's time we stopped using the trivial examples, which suit the salespeople but deny the potential.

Walter @adamson
PS I also always wince at the TV news of various steam towers and cooling towers as examples of greenhouse gas. Gullibility reigns supreme, as in cloud.

Ace
Apr 4, 2011 1:08 PM
It's very tricky to show images of CO2 or radiation clouds. Showing a shot of a power-station is not that bad I would have thought.

My take on Telco's cloud marketing was more that the amount of traffic on internet networks can increase significantly when applications are hosted remotely from their users. As such, cloud computing can bring about a substantial increase in business for Telcos.

I guess one could argue that telecommunication intrastructure is part of the cloud, because it always used to be. However, it's not part of 'Cloud Computing'. I don't see SaaS as Cloud Computing either, because the apps do not necessarily make use of and cloud infrastructure. IMHO, cloud is about hosted infrastructure that can be resized and scaled at the users command - and you only pay for what you use.

Maybe it just a case of people being more specific about what 'cloud' they're talking about.

Edited by Ace: 4/4/2011 04:53:53 PM
Griff
Apr 4, 2011 1:24 PM
I think an examination of Telstra's current sales technique helps to fill in a missing link in your logic. For once, Telstra are selling very smart.
They are approaching all their Colo and other customers to re-negotiate their communications contracts. Telstra a office big incentives to their customers to move to their IAAS offerings. In fact, they are almost giving it away, and very much glossing over the details. Why? Because the use of cloud services helps to drive larger communications requirements. I have seen sales guys mention almost free IAAS service - as long as the customer pays full service comms costs. The more they use int he cloud, the bigger their comms bills.
That's why Telco's are in the cloud business - customer lock-in. They want their customers using this platforms so they use their comms links to provide the fastest connectivity. Also saves on those expensive interlinks :-)
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