Smart pipes can boost cloud

Jennifer Scott News
28 Feb, 2012

The CEO of Deutsche Telekom claims the telco industry can make the cloud reliable with smarter networks

It is time to put the representation of telcos as just ‘dumb pipes’ to bed and look forward to more intelligent connections helping improve cloud service delivery.

This was the belief of Rene Obermann, CEO of Deutsche Telekom, which he expressed passionately during his keynote at today’s Mobile World Congress in Barcelona.

“It doesn’t amaze me that people expect us to become just dumb pipes,” he said, “but I think it will be proved wrong.”

Obermann claimed the cloud was a big opportunity for operators to “make the most out of their assets” but the connectivity had to be better than what it is today. “We cannot continue to handle connectivity on the best effort basis alone,” he said.

“Only a superior cloud experience can develop this cloud opportunity and we have to grow this market together as an ecosystem.”

The CEO believes networks will get smarter and, as an advocate of traffic management, he believes the best connectivity will be given by priority networks

“Some say just build big enough pipes but that is not a solution,” said Obermann. “It is not affordable and just not possible. Look at mobile and spectrum... the resources we have are limited to meet this exploding demand.”

“Intelligent, not discriminatory, traffic management is essential to deliver the real quality experience and in our view this is what customers will pay for. Regulators should have [this] in mind.”

He concluded by saying the face off between smart networks and dumb pipes “belongs to the past.”

“Smart will be where telcos show their innovation, smart will be where [we take on the] cloud opportunity, and we will provide smart connectivity for the digital value chain, thus enabling innovation,” he added.

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