Channel Guide to Connectivity, Data Centres and Cloud Based Applications – Synopsis

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Cover Publication date: September 2014


Deadline for editorial submission: 14 July 2014

Editorial submissions and questions to Ian Hunter, Editor Comms Business Magazine,, telephone 07818 043276

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Publication Synopsis

The delivery of cloud based applications that provide effective, fast alternative solution to the traditional CPE based delivery model is dependant upon many factors not least of which is the quality of connectivity and the robustness of the application hosting data centre.

These interdependencies are critical to the user experience and expectation – any one of the three failing will let down the other two no matter how good they may be individually.

This guide examines the connectivity options available to the channel and how to select the right option for the user and the application required. At the same time we will report back from key data centre operators the issues they face in getting maximum uptime and how they meet these challenges.

And what of the applications themselves? Our main thrust here will focus on how resellers can monetise the supply, build recurring revenues and retain customers.

Cloud Based Applications

The fact that Cloud Computing has achieved a mainstream deployment status across the UK market can be of little doubt these days. The latest research from the Cloud Industry Forum demonstrates that 69 per cent of organisations have formally adopted at least one Cloud-based service within their business.

Looking to the future, the trajectory of growth looks equally healthy with 68 per cent of current Cloud service users claiming they will extend the use of Cloud solutions within their business over the next 12 months, and almost a third (31 per cent) of organisations that don’t use a Cloud service today saying they intend to adopt the first service during the next 12 months. In fact, less than 4 per cent of organisations in a detailed survey of 250 stated they had no intention of adopting a Cloud service. A further sign of health of Cloud is that 78 per cent of organisations stated that they actively consider whether a new or replacement IT service should be delivered as a Cloud service versus on-premise (i.e. it is considered a credible deployment model on a case-by-case basis).

So is Cloud the nirvana of IT deployment models?

Will everything transition to the Cloud?

Are we facing the terminal demise of on-premise IT?

The short answer to all these questions is clearly, NO! The slightly longer answer is you simply can’t lump together every IT and communications need and every type of business and map out a common IT deployment model for them all, it is neither practical nor reasonable nor necessary. In fact in the case of the research, when asked if the participants had any plan or intention to move all services to the Cloud around 50 per cent said they would, but with caveats as to when, whilst the other half had no intention to move everything online.

For the foreseeable future, IT will be a truly hybrid environment for most organisations, hence we will see the formalisation of disciplines around the management of Hybrid IT!

This guide will by way of supplier interviews, contributed pieces and editorial comment, examine;

  • The pros and cons of adopting cloud based applications
  • Case study deployments
  • The economics: when looking at the Cloud model, you have to look beyond the direct costs of infrastructure and software as was the case for on-premise IT and consider the broader impact on the business in terms of reducing maintenance activity, improving time to market, increasing agility etc. to demonstrate the true benefits.
  • Emotion & Education: Trust is a hard thing to establish and for changing IT delivery models, imbuing confidence and enabling effective control over distributed IT is not just about tools and processes, but about attitude, comfort, confidence and ability to weed out hype and FUD.

Data Centres

What about the applications hosts–the data centres. Are they all the same?

If hosted and cloud based applications are to thrive then they need a secure platform and location from which to operate and with such a diverse range of applications being developed by service providers and resellers seeking to differentiate their offerings, the Data Centre is emerging as the key and core component in the mix. However, the market is getting ever more competitive and for table stakes ‘state of the art everything’ is now required as standard.

We examine what key data centre firms are doing to attract business and what they have to offer channel partners that is DIFFERENT.

  • Co-location
  • Hosting third party applications
  • Business continuity
  • Security
  • How can a data centre be channel friendly?
  • A data centre partner selection check list


Today, faster, reliable and more cost effective access is enabling business to get on with their business.

It is also opening up a vast array of opportunities for new applications at the same time which in turn is creating an exciting scenario for the channel.

However this ever changing and fast moving market presents problems for many resellers – how to keep abreast of all the developments and which solution and suppliers are best suited to their customer applications. Providing assistance in solving those issues is one of the main objectives of this guide.

The growth in IP traffic is breath-taking. Consider the following

A May 2013 survey by Cisco noted that global IP traffic has increased more than fourfold in the past 5 years, and will increase threefold over the next 5 years. The firm predicted that overall, IP traffic will grow at a compound annual growth rate (CAGR) of 23 per cent from 2012 to 2017.

Nearly half of all IP traffic will originate with non-PC devices by 2017. In 2012, only 26 per cent of consumer IP traffic originated with non-PC devices, but by 2017 the non-PC share of consumer IP traffic will grow to 49 per cent. PC-originated traffic will grow at a CAGR of 14 per cent, while TVs, tablets, mobile phones, and machine-to-machine (M2M) modules will have traffic growth rates of 24 per cent, 104 per cent, 79 per cent, and 82 per cent, respectively.

Traffic from wireless and mobile devices will exceed traffic from wired devices by 2016. By 2017, wired devices will account for 45 per cent of IP traffic, while Wi-Fi and mobile devices will account for 55 per cent of IP traffic. In 2012, wired devices accounted for the majority of IP traffic at 59 per cent.

In 2017, the gigabyte equivalent of all movies ever made will cross global IP networks every 3 minutes. Global IP networks will deliver 13.8 petabytes every 5 minutes in 2017.

The number of devices connected to IP networks will be nearly three times as high as the global population in 2017. There will be nearly three networked devices per capita in 2017, up from nearly two networked devices per capita in 2012. Accelerated in part by the increase in devices and the capabilities of those devices, IP traffic per capita will reach 16 gigabytes per capita in 2017, up from 6 gigabytes per capita in 2012.

This guide will provide information to resellers regarding the connectivity options they have for their customers and in particular will:

  • Discuss what factors should a VAR consider when debating whether to go the wholesale route or to buy from an aggregator styles suppliers.
  • Examine how resellers can differentiate themselves from their competition – is this all about price and selecting the right channel partner or is it about bundling services?
  • Ask what is the state of play with the key carriers networks and what can they offer a channel partner?
  • Illustrate examples through case studies of the type of end user resellers typically engage with.
  • Reveal reseller opinion on the market.


Please send any answers to the synopsis questions ASAP to or call 07818 043276