Cloud: Hype, Opportunity or Disintermediation

Will such disintermediation be the final straw for the ailing Telecom giants already faced with the ultimate threat of being relegated to just bit pipe providers? 

With the growth of the ‘prosumer', Telco customers continue to search for the ultimate experience at the lowest possible price, and who can blame them? But with the vast redistribution of wealth from the operators to the ever creative software/hardware companies, is the implementation of cloud solutions just another headache for the industry?

Leaders in Voice such as AT&T, NTT and Virgin Mobile USA have called an urgent meeting at the NGT Summit (hosted by GDS International) to discuss the implications of the Cloud phenomenon in an already volatile and competitive market place.

"As with all business the customer will ultimately drive the move," said a spokesperson for NGT 20 consortium. "Disintermediation is a key concern for the industry which must be addressed."

There is no doubt the Cloud creates an improved customer service but will it be to the telecom industry what itunes was to the music industry? Will such disintermediation be the final straw for the ailing Telecom giants already faced with the ultimate threat of being relegated to just bit pipe providers?

Whatever mix of connectivity products and value-added services that are provided by the large operators, the customer needs to address its business needs, and business must be prepared to evolve to meet them. Is the industry ready?


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