Research firm says EU telecoms reform could boost cloud computing

Monday, May 23, 2011

New rules governing service levels and transparency for EU telecom companies which are set to go into effect this week are likely to help cloud services providers expand their businesses, researchers from Canalys said.

The company characterized the reforms as being supportive of a more open and neutral internet, which would make it easier to sell cloud services across multiple EU member states.

"A neutral internet would increase fair access for customers, but also give operators able to capitalize on cloud services a competitive advantage. To remain competitive in a pan-European telecoms market, these operators must invest in content delivery network platforms, in addition to accelerating the conversion to high-speed broadband," said Calalys analyst Alex Smith.

Legal challenges that currently force cloud services providers to comply with regulations of every country in which they do business are likely to be simplified by the standardization in the reform, the firm said.

Numerous businesses have been moving operations to the cloud recently, according to other experts, looking to take advantage of the framework's flexibility and price.