BT Eyes the Network, Migration and Security Aspects of Cloud

Event Summary

March 1, 2011: BT expands its Virtual Data Centre with ‘VDC Connect’ linking to company networks using MPLS, Ethernet or leased line. ‘Customer Virtual Server’ automates migration of existing servers to VDC On Demand. New consultancy services include ‘VDC Assess’ and ‘VDC Migrate’. BT also announced a Managed Virtual Firewall Service, providing cloud-based security where BT handles set-up for customers in a BT data centre and handles updates, configuration, maintenance, license management and monitoring.

Quick Take

Analytical Summary

• Current Perspective: Positive on BT’s expansion of its cloud service capabilities that emphasize simpler integration with existing large corporate DC and network infrastructure. These customers generally do not see carriers as their first choice of cloud service provider. BT’s focus on security and availability is a credible carrier approach to the cloud market.

• Vendor Importance: High to BT as it stakes out its MNC and large enterprise cloud service presence with network-centric credentials, and needs to be perceived as responsive to customer requests. Carriers all need to develop these competencies in a way that does not cannibalize their existing revenue streams, or exclude them from the corporate data centre.

• Market Impact: Moderate on the cloud services market as there are no groundbreaking elements to the announcements, but a solid expansion of cloud capabilities that confirms the BT commitment to cloud service delivery.

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