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services. Furthermore the network is supporting multitenancy isolating
multiple client organisations from each other.
The network will be the primary mechanism that allows providers to extend
over distance, monitor and manage Cloud services end to end. By
aggregating the management of diverse services, the Cloud service provider
becomes an exchange that adds value, provides the platform, supports the
customer, and handles the billing. This allows him to recognise and
monetise cross‐selling and upselling opportunities.
Cloud computing allows the deployment of services over an IP network.
When an enterprise is concerned about security in the Public Cloud, a Cloud
provider could aggregate the desired services and manage them as a
secured Private Cloud entity for the customer, on premise or remote.
The Network Service Provider as a Cloud Enabler
The network service provider (NSP) takes over an important role as Cloud
enabler. The NSP is an organisation that sells network access and bandwidth
by providing direct backbone access to the Internet through network access
points (NAPs). Network service providers may consist of
telecommunications companies, data carriers, wireless communications
providers, Internet service providers, and cable television operators offering
high‐speed Internet access. A few IT companies are also emerging into the
NSP market, notably IBM, EDS, CSC, Vanco and Atos Origin. This is due to the
convergence of information technology and communications technology
into one Information and Communications Technology (ICT). Taking into
account this additional complexity resulting from the ICT integration
generates an even deeper insight into the Cloud computing value chain.
Network service providers have an interest in understanding Cloud value
chain dynamics. For telecommunications companies, it often makes sense to
grow a Cloud portfolio from a base of hosted communications and
collaboration products. Mobile access accelerates the adoption of SaaS, so
mobility should be integrated into every SaaS.
The Cloud Business Model
Cloud is not about new product or technology as much as it is about
applying technologies to enable important innovations to the business
model like resilient business processes becoming competitive assets. The
concept of a Cloud enablement of a business model is highly relevant in the
context of making best use of Cloud computing. Cloud computing is an
evolution of the dominant business model for delivering IT‐based solutions.
It distinguishes itself from previous computing paradigms like outsourcing
