By: Monica Ricci

While revenue growth and, more critically, margins have been slowing or have even stalled for traditional voice and text services, business services provide a bright spot for providers, showing the most potential for growth in an otherwise economically gloomy telecom market.

Companies in many industries are finding compelling reasons, from cloud computing to machine-to-machine communications (M2M), to seek out advanced services as part of their technology strategy. As a result, enterprise services are truly big business for communications service providers (CSPs): by some estimates, cloud and M2M revenue will grow at 25 percent CAGR (compound annual growth rate) over the next five years. Understandably, CSPs are focusing on strategies that can capitalize on these services as a growth opportunity, and are recognizing the need for flexibility, scalability and real-time processes in order to manage the complexities of enabling next-generation enterprise services.

The cloud: pie in the sky?

The pace of business, like the pace of life, has increased. Whether they’re automakers or farmers, healthcare providers or retailers, enterprises of all kinds have been affected by the transformative power of ubiquitous networks, and have had to respond quickly to harness the “anywhere, anytime” capabilities that the internet and mobility have brought to them and their customers. CSPs have been partners to businesses from the get-go, connecting them to their customers, prospects, employees, and value chain, and cloud computing has evolved to deliver the epitome of “anytime, anywhere” service to consumers and businesses alike. With the cloud CSPs have the opportunity to use their position as trusted partners to facilitate a host of new business-service offerings.

Cloud services are expected to hit the $150 billion mark this year because they strike a chord with CEOs, CIOs and CFOs alike. CEOs in enterprises of all shapes, sizes and markets recognize the need to be swift, nimble and innovative in their respective business areas. The quick deployment of cloud offerings and the offloading of non-core IT tasks ensure that an enterprise is poised to make the most of key revenue and profit opportunities.

Meanwhile, the cloud allows CIOs to deliver functionality and proficiency without the expensive challenge of recruiting, training and retaining an efficient cadre of talented IT professionals. And last but not least, CFOs are attracted by the cloud’s cost advantages. In the face of perennial financial pressures they can shift capital expenditures (CAPEX) to operational expenditures (OPEX), and they’re finding real value in tying costs to usage, especially in cases where capacity needs fluctuate on a seasonal/cyclical basis; no extra capital is tied up in computing resources and licenses scaled to accommodate a brief, intensive peak period.