Telcos ready to capitalize on cloud computing services opportunities

- Wednesday, May 18, 2011

Telcos ready to capitalize on cloud computing services opportunities

Major Jamaican telecoms players are betting on cloud computing services in the country as they invest in initiatives geared towards this business area, according to local newspaper the Jamaica Observer.

According to the Observer, local telecoms operators Digicel, LIME and Flow have all made efforts in the area and have made it clear cloud computing services will be an important part of business operations in the coming years.

Head of ICT sales at Digicel Business, David Bates, said in 2009 global revenues from cloud services hit US$41bn and by 2020 this figure is projected to reach US$214bn.

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Digicel has begun offering cloud backup, managed hosting and co-location to its corporate customers. The operator also expects to launch additional services like Hosted Email, Hosted BlackBerry Server, Virtual Server and Cloud Telephony.

Making Jamaica the hub for its cloud services business, Digicel Business opened in November 2009 and invested US$600mn in an 8,000 square foot facility for business in Jamaica and throughout the Caribbean.

Local triple play cable operator Flow's parent company Columbus Communications has partnered with Ignition Technology Group to offer cloud services under the Columbus Business Solutions (CBS) brand, housing its 40,000 square foot facility in Curaçao. Demand for cloud services grew 68% over the last 12 months, said Michael HoShue, principal consultant at the Ignition Technology Group, which partnered with Columbus to launch CBS.

Meanwhile, CBS VP for regional business solutions, Niall Sheehy, highlighted the importance of cloud backup services for SMEs. According to Sheehy, 40% of businesses that lose data as a result of a natural disaster fail to start operations up again.

According to LIME's managing director of managed services Ian Galt, the telco starting offering cloud computing services last year and has highlighted it as a "key growth area." Caribbean telecoms operator LIME, a unit of the UK's Cable & Wireless Communications (C&WC), has cloud facilities in the Caribbean as well as in North, South and Central America.