BUSINESS COMMUNICATIONS. SIMPLIFIED.

Providing control, security key to unlocking the cloud opportunity

By Sanjay SrinivaSan, TeleSphere CTO
july 17, 2012
By 2016, 40% of enterprises will require prospective cloud providers to submit proof of independent security
testing before theyll sign up for service, Gartner predicts.
This priority is an opportunity for telcos, cable operators and unifed communications (UC) service providers
to differentiate themselves in the increasingly crowded cloud market. Even when enterprises, government
agencies and other organizations dont require third-party verifcation, that doesnt mean control and security
arent important enough to infuence their choice of cloud providers.
For example, many organizations believe that their computing or communications is more secure when it
remains entirely in house, including a private cloud. But the reality is just the opposite: Enterprises often have
network security implementations that become increasingly lax over time. Common vulnerabilities include
failing to change passwords on a regular basis and, often because of tight budgets, not upgrading software or
implementing security patches in a timely manner.
By comparison, service providers can offer cloud services that have much more stringent policies and frequent
audits. Cloud providers also are typically far more diligent about upgrading their software and implementing
security patches. Just one highly publicized breach can be enough to damage a cloud providers brand, so they
have a vested interest in protecting their customers data and services. Also, simply because they have so many
customers in so many industries, cloud providers have far more hands-on experience with a wide variety of
security scenarios than a typical CIO, CSO or IT manager.
Service provider clouds generally also are better at balancing security and usability. The easiest way to secure
a private cloud is to lock it down. But that strategy can backfre if employees get frustrated and look for ways
to circumvent security just so they can get access from wherever they are, including their home offce, hotel
room and airport lounge. The service provider architecture, on the other hand, has to be designed for a high
level of security and access. The provider also is in a better position to establish points of presence wherever
its customers are.
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There are at least nine other ways that service providers can foster a sense of control in existing and potential
customers:
1: Provide customers with Web portals, alarms and other tools that enable them to confgure and monitor
their cloud services 24/7. Simply because its costs are spread across multiple customers, a cloud provider
frequently can offer sophisticated tools that an enterprise might not be able to afford if it were buying them
itself.
2: Remind potential customers that the cloud provides inherent design and capability for disaster recovery and
business continuity. Their computing and communications resources are far more resilient when theyre
distributed across a service providers data centers versus residing entirely at the customers headquarters,
where a single earthquake, tornado, terrorist attack or other disaster could put them out of business for
hours, days or weeks.
One way to quantify these benefts is to ask the customer to estimate how much it would cost for it to buy all
of the IT infrastructure and connectivity necessary to duplicate its existing facility so that it has an in-house
backup ready to go following a disaster. The cloud provider also should ask the prospective customer whether
its comfortable with the prospect of having all of that redundant infrastructure and connectivity lying fallow
most of the time instead of generating revenue.
Many CIOs and IT managers already understand these benefts. For example, in Enterprise Management
Associates survey of 159 enterprises with existing or planned cloud deployments, nearly half cited disaster
recovery/business continuity planning as one of their top motivations.
3: Use standards-based platforms to overcome fears that their applications and data will be stranded on a
single cloud provider instead of being easily ported to another provider. In the case of cloud communications
services such as UC, theres a similar concern about interoperability with other providers cloud-based
services.
4: Identify and accommodate industry- and country-specifc regulations and best practices such as PCI and
HIPAA. Its also likely that its more cost-effective for the cloud provider to keep up with and then implement
all of the changing laws and best practices than it is for the customer to have its staff handle those tasks.
5: Welcome third-party audits, both for industry-specifc compliance such as Statement on Auditing Standards
(SAS) No. 70 (replaced by SSAE 16 in June 2011) and broader best practices such as ISO 27002.
6: Educate potential and existing customers about the challenge of technological obsolescence. CIOs, IT
managers and other enterprise decision-makers will be aware of this challenge at a high level. That
awareness creates opportunities to point out detailed, low-level examples of how obsolescence undermines
their bottom line and operations, such as an elderly UC platform that no longer is interoperable with other,
newer UC systems. Then demonstrate how the cloud provides them with a cost-effective solution for
overcoming those challenges, such as affordable access to the latest and greatest UC solutions.
7: Highlighting examples of how the service provider has taken the time to understand the nuances of each
customers business. This strategy also is one example of why service providers must retune their sales
teams so theyre capable of selling complex cloud services, which are more of a solutions sale than a
traditional telecom sale.
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For example, the legal industry needs to be able to track billable hours for both inbound and outbound calls.
Traditionally only outbound calls are tracked. However, a service provider that offers a way to track inbound
calls, too, and then integrate that information with the clients offce processes would have a better chance at
winning that account.
8: Offer on-demand and on-the-spot demonstrations that highlight how cloud computing and cloud
communications can transform the way that a potential customer does business. Those demos should
include a mobile component because most organizations have a signifcant and rapidly growing number
of employees, business partners and clients that need mobile access to cloud-based computing and
communications. The CIO, IT manager or other enterprise decision-maker might understand the importance
of adding mobility to the cloud, but he or she will appreciate guidance through all of the options. The demos
also should compare the ballpark costs of those business enhancements when the customer bears them
entirely in house versus using a cloud provider.
9: Offer a try-before-buying program, which provides the enterprise with a low-cost, low-risk way to try
additional features and services to see if they deliver the promised business benefts. This strategy creates
signifcant upsale opportunities.
Cloud computing and cloud communications are a major opportunity for service providers. In 2010, enterprises
were already spending $12.1 billion on cloud-based services, and they were on track to spend $35.6 billion by
2015, says the research frm Analysys Mason. For service providers, grabbing a big share of that market begins
with creating a sense of trust with customers. Thats because although enterprises, government agencies and
other organizations like how cloud enables them to reduce CapEx and OpEx, theyre unwilling to give up control
and compliance to get those bottom-line benefts.
As Telesphere CTO, Sanjay Srinivasan is responsible for all engineering and product development. He has more
than 15 years of expertise in data networks, voice services and hosted application services. For his complete
bio, visit www.telesphere.com/management_sanjay.html.
www.TELESPHERE.com | CALL 888.MY.SPHERE (697.7437)
BUSINESS COMMUNICATIONS. SIMPLIFIED.

Dgtay sgned by Teesphere
DN: cn=Teesphere gn=Teesphere
c=Unted States =US o=Teesphere
ou=Teesphere
e=teespherenetworks@gma.com
Reason: I amthe author of ths document
Locaton:
Date: 2013-09-24 11:42+05:30