Program link, with Grahame Lynch moderating, Drew Kelton and Diarmid Massey.
Grahame: enterprise communications, state of global markets?
Diarmid: 2010 has been a challenge, strong push to take cost out of network. We’re seeing established western companies taking cost out while Asian markets are trying to expand, find new markets.
Drew: Market in India: western-developed markets looking for cost efficiencies. We saw uplift in volume but price pressure. Consolidation is an opportunity, Indian global companies had opportunities. Bullish on enterprise space, need to be realistic about how to move forward with differentiated services. Was a balanced year, slightly better.
Grahame: hot services?
Diarmid: from cable worldwide, our business grows thru our partners, other telecom service partners. Growth of tablets, P2P, social networking is driving massive expansion on global IP network. Need more resiliency. Push for cloud services, means different things, demand also taking off as people understand more. Individuals, then multinationals looking for host-based services.
Drew: couple of perspectives. Market in India, market into/out of India. Market in India: 2500 enterprise clients market is growing in domestic business. Age of maturity, pure infrastructure issues, India will take a couple of leaps out, NPLS has some traction, banks; nothing exciting over core. More exciting: basic carrier services into cloud. International into-out of India, enterprise indirectly: opportunities to leverage distribution in India market. Geographically disbursed populus. Inbound distribution.
Grahame: cloud: supply side is big about cloud. Industry and user base disconnect?
Diarmid: yes. Big terminal/modem, where was intelligence. As individual users, we’ve come to know that Internet has functionality. Put it in a data center where I can… benefits not clearly explained to CIOs, also data privacy, availability or failure issues to client base, unknown value proposition.
Drew: Cloud isn’t centralized, availability of much more processing, storage at lower cost to wider audience, scale has changed. Use of capability (VMware, etc), little bit of maturity issue, DIY issue in India, infrastructure as an enabler? Types of apps in hosted environment is likely to happen. Where we start to see non-mission critical apps is where early adopters have opportunities, use of gmail in enterprise environment.
Grahame: confidence in infrastructure, quality of connections, particularly in other countries?
Drew: Indian way isn’t always appropriate response on international level. App-centric networking: can’t stop development, but minimize pain by not committing to certain terms that are inconsistent with Indian way. What’s going to happen with emerging markets, utilization, in wireless and 3G; we haven’t seen yet supply-demand. Local access is biggest issue.
Diarmid: consumers are demanding of our devices, expect wireless and Internet to be there. When it fails, causes major disruptions. Need resiliency. For most countries, is sub-sea, prone to disruption. Global infrastructure. Seeing evolution of mobile device as what most people have. Infrastructure is not capable of dealing with flat rate data plans. As networks evolve, increasing resiliency.
Grahame: rise of mobility is a challenge for multinational enterprise carriers?
Diarmid: they hate mobile devices. They get lost with sensitive data, networking challenges. From central control perspective, IT managers have a challenge. We’re not there yet in terms of how to deal, can’t stop people from using them.
Drew: Challenge by CIO to diverse customer base needs to be mindful of continuation of this trend. By 2015, 80% of content will be accessible by mobile. Disparity between 5-9s of fixed line but don’t remember the phone number, vs mobile that drops out. Implementation is mind blowing. Financial objective and outcomes: drive assets as hard/long as you can, oversubscribe (AT&T), there’s nothing free. As an industry, need to be a bit more considered.
Grahame: how important to own your own infrastructure?
Diarmid: decision long ago that it’s not going to happen. Gives opportunity to use partner services and integrate, interconnect. Have to play well with others. Managing your path with multiple providers is key to success.
Drew: economics and reality of trying to do it isn’t viable. Mobility: 10 years ago wasn’t an option. Utilization of partner-based assets will happen more and more. Don’t need to own it to operate it well. Going forward, huge ownership isn’t necessary, economics don’t work. Struggle to raise capital too.
Grahame: most enthusiastic about?
Diarmid: about solving some ideas we’ve had in the past, and how to structure about partnering. Few companies are good at it. Airlines work well together. In our industry, we need to learn that better: same look-n-feel, roaming charges, user experiences. Try to make the world smaller, create an ecosystem that works well.
Drew: I’m excited about moving to India, growth opportunity of country. B2B: every enterprise has end-user customers, B2B/E2C opportunities and transactions. Content to media exchange to cinemas to customers. Growth areas in B2B, 150M subscribers may want access to some content.