Cloud providers can learn from telecoms

Peter Dinham
Thursday, 04 June 2009 16:29

IT Industry - Market

Cloud computing providers should have a good look at the telecommunications industry to work out the best way to monetise their services before establishing their own billing systems, according to advice from IDC.

IDC says worldwide telecom cloud billing investments will grow from $15 million in 2008 to $350 million in 2013, and that cloud providers can learn from telecom service providers by leveraging the industry’s “proven approach for effectively charging for such services.”

According to IDC, monetising cloud computing services is not going to happen overnight, but cloud providers can “gain traction by leveraging the telecommunications industry's approach.

The research firm says that, while other industries – banking, IT, logistics, online entertainment, retail and transportation – have sought to build comprehensive and flexible billing platforms, cloud computing players are finding it “critical to evaluate these telecommunications billing solutions.”

“Leveraging a system to put a value on the transaction – "rate" in telecom language – will be a critical first step for cloud computing infrastructure projects. Telecom billing vendors like Amdocs, Comverse, Convergys, CSG, Intec, LHS, Oracle, and others include rating as a core component of a holistic billing system, which also includes capabilities such as customer care, partner billing, promotions, and payments and collections.”

Elisabeth Rainge, director NGN operations at IDC says that other telecom billing vendors focus on specific pieces such as rating, mediation, settlement, or revenue assurance, and the business and consumer experiences of complex bills for technology services is often tightly associated with voice and, increasingly data services, “thereby making the telecommunications example instructive.

"A new generation of business and consumer customers mean that cloud providers need to take a critical look at the options,” Rainge advises.

"The investment in billing systems for cloud computing is drawing upon the rigor, scale, and technology experience of the telecommunications industry,” Rainge says, adding that "in examining the existing deals for cloud billing, we identify telecommunications industry expertise as highly relevant."
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