Cloud-based VAS offers Benefits and Pitfalls

With the marginalization of bearer services, there will be a growing dependence on Value-added Service (VAS) applications for initially top line revenue growth (as data growth tapers off and margins are squeezed) and then for margin growth as bearer services become a cost-plus commodity.

We consider VAS is an additional service for which subscribers pay extra for each type of offer rather than the phone call and messaging.

Notwithstanding the benefits that Cloud Computing offers, there are numerous issues and challenges for organizations embracing this new paradigm. There are several challenges; the major challenges are the following:

  • Data management and governance
  • Service management and governance
  • Product and process control and monitoring
  • Infrastructure and system reliability and availability
  • Information and visualization security
  • Concerns over security with respect to knowledge, information and data residing on an external service device
  • Concerns over services’ and resources’ availability and business continuity
  • Concerns over data transmission across anticipated broadband speeds

Other shortcomings include no native security attributes, inadequate or no security provisioning by providers, lack of understanding of Cloud legal issues, and the failure to recognize potential liability from either legal issues or because of lack of security. Issues with respect to “control” are also real concerns. Numerous questions that arise in this regard include (1) what happens to data and information held on a Cloud resource when the company that owns it goes out of business; how these data will be retrieved and returned to the owner organization; (2) what is the guarantee that the vendor has appropriate resilience arrangements in place with respect to the Cloud consumer organization’s business continuity viewpoint, etc. In spite of the limitation and inherent issues, Cloud Computing is becoming an attractive paradigm for large and small enterprises alike:

  • In 2008, it was predicted that Cloud Computing initiatives could affect the enterprise within 2–3 years as it has the potential to significantly change IT.
  • Analysts suggested that by 2012, 80% of Fortune companies will pay for some Cloud Computing service and 30% of them will pay for Cloud Computing infrastructure.

For more information, see:

About Mind Commerce

Analysis of telecom and ICT infrastructure, technologies, and applications.
This entry was posted in Cloud Computing, Security, Value-added Service Applications, Wireless Carriers. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s