Telecommunications lagging behind cloud computing

Tuesday, October 04, 2011

Cloud computing has provided an opportunity for service providers and businesses alike to benefit from the technology's advantages.

However, the telecommunications industry has been slow to adopt a cloud infrastructure or fully understand the technology. According to a recent study based on poll responses from the Management World show in Dublin, only 27 percent of telecommunications companies have a cloud strategy in place, Connected Planet reported.

The remaining 73 percent of respondents indicated they have not formulated a cloud computing plan and the monetization model has been approved. More than half of those surveyed said they would consider using a dumb pipe model, which focuses on network services rather than cloud applications and content, the report stated.

Overall, cloud computing is expected to continue its meteoric rise across the world as more companies look to take advantage of its cost effectiveness and scalability.

According to a study conducted by IDC earlier this year, spending for public cloud computing services is projected to grow at annual compound growth rate of 27.6 percent from 2010 to 2015, reaching nearly $72 billion.