[July 21, 2011] : Telcos invested US$8 billion in cloud in first half of 2011, but generated pennies in cloud services Tweet Jul 21, 2011 (M2 PRESSWIRE via COMTEX) -- Communication service providers (CSPs) committed almost US$8 billion to cloud-related pursuits in the first six months of 2011, but recent acquisitions wont boost cloud revenues overnight and service differentiation remains poor, according to Informa Telecoms & Medias Telecom Cloud Monitor, a new analytical tool evaluating CSPs cloud strategies. The tool tracks the cloud-related activities of 90 CSP groups worldwide, including their interactions with more than 240 cloud-related equipment, software and services vendors. Informa estimates that the typical CSP generates less than 5% of its enterprise revenues from annuity cloud services. Despite growing customer wins, some CSPs need to muster 10-fold growth to hit publicized cloud revenue targets. Of the 10 acquisitions and 21 investments announced in the first half of 2011, 80% involved data centers, highlighting CSPs desire to bulk up on physical assets to sell virtual goods. Recent multiples paid for so-called cloud assets arent at Enron Era levels, but they are generous, said Camille Mendler, principal analyst at Informa Telecoms & Media. More worryingly, the companies acquired although growing generate a sixth or less of their revenues from pure cloud services. On current performance, Informa concludes that many CSPs are swapping their dumb-pipe problem for a dumb cloud: 70% of the 88 cloud services launched in the first half of 2011 were generic productivity and storage applications, often involving partners claiming a major share of the takings. Software as a service is a loss leader for most CSPs: Partners like Google, Microsoft and Salesforce offer great tools, but they want their pound of flesh, said Mendler. Profitable differentiation lies in securing seamless access to enterprises digital assets, not just SaaS resale. Informa warns CSPs not to squander their powerful differentiators in the cloud marketplace. They must: Create high-value community clouds to serve the needs of specific vertical industries Secure cloud access via any device in audited compliance with local laws Mobilize the cloud to transform business processes encompassing people and embedded devices About the Telecom Cloud Monitor The Telecom Cloud Monitor is an analytical tool from Informa Telecoms & Medias Enterprise Verticals practice. The tool tracks and evaluates the global cloud-related activities of 90 communication service provider groups worldwide, including investments, customer wins, service launches and partnerships with more than 240 cloud-related equipment, software and services vendors since 2005. For more information, please contact: Camille Mendler Principal Analyst Mob +44 7766 13 15 28 Email: [email protected] Twitter: @cmendler Denise Duffy PR Manager, Informa Telecoms & Media Mob +44 (0) 7500 330826 Email: [email protected] Twitter: @informatm_pr About Informa Telecoms & Media Informa Telecoms & Media (www.informatm.com) is the leading provider of business intelligence and strategic services to the global telecoms and media markets. Informa UK Ltd 2011. All rights reserved. ((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to [email protected]. [ Back To TMCnet.com's Homepage ]