Yesterday, Verizon Business introduced an on-demand, “cloud-based” Computing-as-a-Service (CaaS) solution that will be an important indicator of whether telcos can succeed in the cloud.

Anyone who has followed my writings knows that my roots are in the telecom industry, having helped to launch IDC’s Communications Industry Research program in 1983 at the time of the AT&T divestiture.

I’ve watched the telecommunications giants make many failed efforts to penetrate the data center. In the late 1980s and early 1990s, they tried their hand at systems integration and IT outsourcing.  In the late 1990s, they aggressively provisioned fiber optic cables and built out showcase network operations centers (NOCs) to exploit the Internet explosion and capitalize on the over-hyped demand for managed services which never fully materialized.

After the telecom industry shakeout at the beginning of this decade, the telcos bought their way into the Application Service Provider (ASP) market. Verizon acquired Digex and Totality via MCI, and AT&T … Read More »