Cloud Computing -- Delivered by Your Local Telecom Company?

According to a recent report, Verizon is planning to sell netbooks to consumers later this year for $99 bundled with a two-year service agreement. AT&T currently sells Acer netbooks for $99, as well. While the carriers have not yet announced plans to deliver virtual desktop services as a value-add, this is certainly the next step in the cloud computing evolution.

Telecom operators have a unique opportunity to disrupt the PC business and become a major distribution channel for operating systems, applications and services. This is bound to happen, as the OEM channel rethinks its business model - with software dwarfing the cost of the hardware it runs on. Why would 5 billion people pay $300 for an operating system and productivity suite, when the hardware it runs on is under $250? On the other hand, the same operating system and productivity suite delivered for a few dollars a month as a bundled service (with broadband connectivity) provides customers with added value.

If telecom operators do not move quickly, there is another option brewing. Big cloud providers, with huge data centers, expertise in delivering services on a massive scale and ownership of lots of dark fiber and swaths of wireless spectrum, will displace both the traditional telecom operators and providers of PC software out of the market.

Telecom operators have at least two things going for them. First, they have the geographic footprint that benefits the delivery of virtual computing services by providing low-latency connectivity necessary for a high-quality user experience. Secondly, they have experience in marketing, selling and taking care of large customer bases. If they can sell a voicemail service for over $5/month to millions of subscribers, when an answering machine costs $25, they can certainly sell Virtual PCs at $25/month loaded with software and other goodies.  They just need to decide whether they want to take advantage of this unique opportunity or let others eat their lunch.

With several trials in place throughout North America, Europe and Asia, SIMtone is equipping a number of telecom operators to offer carrier-class cloud services to enterprise, small business and consumer markets - all which are infinitely scalable and highly reliable. 

Let me know how you feel about telecom providers offering cloud service bundles.