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CABLE AND THE CLOUD: Strategies, Services and Success Stories BUSINESS MARKET INTELLIGENCE FROM CTAM

Cable and the Cloud: Strategies, Services and Success Stories

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From CTAM Business Services Council: For small-and medium-sized U.S. businesses, moving computing operations out of the server closet and into what is broadly branded as "the cloud" is now a cornerstone IT strategy, offering cost, flexibility and speed advantages. Encompassing varying combinations of communications, infrastructure and software services that rely on remote computing systems connected over broadband networks, the business cloud computing movement has demonstrated tremendous marketplace momentum.

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Page 1: Cable and the Cloud: Strategies, Services and Success Stories

CABLE AND THE CLOUD:

Strategies, Servicesand Success Stories

BUSINESS MARKET INTELLIGENCE FROM CTAM

Page 2: Cable and the Cloud: Strategies, Services and Success Stories

Introduction 3

Cloud Business 2013: Facts and Forecasts 4

What Works: Ideas and Approaches for Market Success 5

Cable in the Cloud: Current Strategies 7

Competitive Watch 10

Cloud Competitor Market Rankings 11

CTAM Cloud Showcase 12

Addendum: Selected Cable Provider Services 13

Contents

BUSINESS MARKET INTELLIGENCE FROM CTAM — CABLE AND THE CLOUD 2

Page 3: Cable and the Cloud: Strategies, Services and Success Stories

For small-and medium-sized U.S. businesses, movingcomputing operations out of the server closet and intowhat is broadly branded as “the cloud” is now acornerstone IT strategy, offering cost, Qlexibility andspeed advantages. Encompassing varying combinationsof communications, infrastructure and softwareservices that rely on remote computing systemsconnected over broadband networks, the business cloudcomputing movement has demonstrated tremendousmarketplace momentum. Six million small and medium-sized businesses worldwide entering the cloudcomputing market last year alone (Parallels, Feb. 2013).According to an April 2013 survey of 822 U.S.businesses by the researcher Neovise, 54% ofbusinesses have by now adopted some form of cloudcomputing. In business, as Forbes writer Reuven Cohenrecently commented, “The cloud has gone mainstream.”Economic evaluations afQirm the mainstream statusfor business cloud IT services. Estimates frommarketresearch organizations suggest U.S. SMBs could spendclose to $20 billion in 2013 on cloud IT services, withprojections calling for recurring double-digitcompound annual growth rates. Even the moreconservative of the forecasts, those with narrowlydeQined interpretations of “cloud” services, showimpressive upward trajectory.The reasons by now are well known. With apay-as-you-go model that yields savings throughmultiple/shared tenancy, cloud computing is attractiveto SMBs that aim to replace seemingly endless capitalinvestment and replacement cycles with predictableand manageable operating expenses. Additionally, theimmediate scalability available through use of cloudresources supports faster deployment of services andbusiness processes while lessening the time andattention spent on technology management.

Underscoring the large and growing market forbusiness cloud computing is the broad range ofcompanies that now compete for IT budgets of SMBsby promoting some form of “cloud” solution. A Googlesearch using the terms “U.S. business cloud computingservices” yields millions of results, with providersranging from familiar business computing brands suchas Dell and Microsoft to newly launched specialists thatpackage and resell cloud solutions.The widespread adoption of business cloud IT servicesover the past several years roughly coincides with therise of the cable telecommunications industry as asigniQicant and trusted provider of broadbandtransport, communications and IT services for businesscustomers. “Cable operators, as opposed to otherproviders, are the ones that have the broadbandconnection with businesses,” observed Cisco SystemsInc. cloud services specialist Victoria Ministri in aninterview. “They have the trusted relationship and therep who calls on customers. It’s a natural evolution tomove into the cloud business.”As this dovetailing has taken place — cable’sincreasing business communications market sharecoupled with the rapid adoption of cloud computing —participants in both camps have begun to introducesolutions that marry cable’s deepening businesscommunications imprint with the embrace of cloud ITservices among SMBs. How this pairing is evolving, thepotential opportunities it creates for the cableindustry, and the challenges associated with cable’sentry into the cloud IT marketplace are the subjectsof this CTAM Business Market Intelligence report.

Introduction

BUSINESS MARKET INTELLIGENCE FROM CTAM — CABLE AND THE CLOUD 3

Page 4: Cable and the Cloud: Strategies, Services and Success Stories

Clarifying the market dimensions for businessspending on cloud IT services is an inexact pursuitbecause of the absence of commonly accepteddeQinitions. As CableLabs® Vice President Glenn Russellnoted during a 2013 CTAM panel discussion,Wikipedia’s deQinition of “cloud computing” dismissesthe term as “ambiguous jargon.” At the other endof the spectrum, Deloitte identiQies cloud computing as“a collection of Internet-based or private networkservices providing users with scalable, abstracted ITcapabilities, including software, development platformsand virtualized servers and storage.”From a cable industry perspective, one prominentcompany, TimeWarner Cable Business Class, hascharacterized cloud services as encompassing thesecharacteristics:On-demand availabilityConsumption-based (customers are billed basedon what they use)Opex-driven (cloud services may remove upfrontcapital expenses entirely)Based on self-service and customer-led automationDespite differences around deQinition, there is broadagreement among researchers around the trajectoryof U.S. and/or global business investment in cloud ITresources and services.

Overall market growthParallels, a cloud services provider, estimates theU.S. SMB cloud market at $18.9 billion in 2013 andforecasts that it will grow at a 19% CAGR through2015.Deloitte sees cloud computing alternativesreplacing about 14.5% of premise-based ITspending worldwide by 2020, a sharp accelerationfrom about 2% in 2013.Cisco’s Internet Business Services Group projectseven more rapid replacement of premise spendingin the U.S., estimating half of U.S. SMBs will devoteat least one third of their total IT budgets to cloudand managed services in 2013.To be sure, cloud IT expenditures make up only afraction of the estimated $300 billion-plus spentannually by U.S. business on information technologyand telecommunications. But it’s the trajectory of cloudspending that makes the category stand out.CTAM’s 2012 cloud computing market initiativecoalesced several analysts’ estimates into the tablesbelow, which depict both the momentum of the NorthAmerican business cloud IT marketplace and thecloud’s share of SMB spending on key IT services.

Cloud Business 2013: Facts and Forecasts

BUSINESS MARKET INTELLIGENCE FROM CTAM — CABLE AND THE CLOUD 4

North America cloud services revenue, $BProportion of total IT budget spend on SaaS/IaaS+Mgnd. services, SMBs w/5–20 employees

$100B

$90B

$80B

$70B

$60B

$50B

$40B

$30B

$20B

$10B

$0B2010 2011 2012 2013 2014 2015

$45.4

$53.7

$63.2

$73.2

$82.9

$92.1100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

CAGR=15%

2011 2012 2013

17%

31%

22%

12%

8%4% 19%7%

9%

17%

25%

23%

13%

5%8%

8%

14%

19%

19%

13%

11%

16%26%

40%

>50%41–50%31–40%21–30%11–20%1–10%0%

>30% of ITbudget onSaaS/IaaS

Sources: IDC, OVUM, Information Week, CSMG Sources: Cisco IBSG, CSMG

Page 5: Cable and the Cloud: Strategies, Services and Success Stories

There are no “killer apps”…yet: Cloud services thathave exhibited early market momentum for BrightHouse Networks include hosted PBX and hosted voiceservices, according to Vice President Craig Cowden. Onthe data side, it’s a challenge to differentiate from a hostof “me-too” products and services (such as data backupand hosted exchange) that are widely available frommany providers. One possible breakthrough, Cowdenbelieves, may come from desktop-as-a-service offeringsthat essentially replace the need to purchase, install andmaintain business software machine-by-machine.Instead, applications are abstracted into the cloud, thusreducing capital expenses and improving reliability.“I don’t think that cable companies are necessarilythought of as the natural provider of desktop as aservice today…but as we grow deeper with managedservices, (clients) really do change their perception ofwhat a cable company is as a business class servicesprovider,” Cowden said.Product needs vary by customer size: For smallerbusinesses, observed TimeWarner Cable’s Greg King,cloud services are appealing mostly for their deliveryof quick access to resources and services and the“immediate gratiQication” it produces. Movingupmarket, security and reliability begin to loom largeras purchase incentives. And for larger enterprisecustomers, the focus tends to shift to “transformative”ideals that can reshape the role of IT to support moreagile, faster business processes.

Verticals are drawn to unique “cloud” product sets:Educational institutions, for example, may favormanaged wide-area network services over managedLANs as a way to maximize investment in IT/telecomservices that qualify for subsidies under the FCC-directed E-Rate program for schools and libraries. Forcertain health care sector clients, managed contentQiltering solutions may be especially appealing to aid incompliance with privacy requirements of the federalHealth Insurance Portability and Accountability Act(HIPPA).Service sets providers apart:With a large numberof competitors in the (broadly deQined) cloud ITmarketplace, cable companies can stand out bydelivering outstanding service. Time Warner Cablebelieves its “white glove” onboarding process for SMBcustomers that are moving to hosted exchange serviceshas helped to create a positive Qirst experience inmigrating to the cloud. Bright House Networks’Cowden noted many competitors are distantcompanies with little more than email help deskfunctionality, in contrast to cable’s local feet-on-the-street service presence.

What Works: Ideas and Approachesfor Market Success

BUSINESS MARKET INTELLIGENCE FROM CTAM — CABLE AND THE CLOUD 5

Because cable’s entry into the cloud is in its early stages, it’s difficult to draw firm conclusionsabout ideal product mixes, implementation approaches and sales practices. Here are somethemes that are emerging, however, as cable companies pursue a bigger role in the cloud:

Page 6: Cable and the Cloud: Strategies, Services and Success Stories

Language matters: Despite the fervor associated withthe term “cloud” at large, not all cable companies areintentionally branding their hosted services as such. Inthe mid-market space, business customers “tend to use‘cloud’ and ‘managed services’ interchangeably, so thelines are very blurred,” pointed out Lightpath SeniorVice President, Marketing and Business DevelopmentJulia McGrath at CTAM’s June 2013 cloud servicespanel. Industry business services strategists insteadsuggest talking more about functionality and serviceadvantages rather than labeling offerings as “cloud”or otherwise. Also, Bright House Networks’ Cowdencautioned against lapsing into tech jargon: “You caneasily fall in the trap of using common terminology thatis consistent with telecom professionals that we workwith, and many of our customers are not that.”Network ownership can be a critical differentiator.Experts see an evolution in which their facilities-basednetworks become more tightly integrated with cloudservices over time, creating important competitivedistinctions. Even today, however, cable businessservices strategists see advantages springing from theirtransport-based relationships with customers, whichcan create opportunities for conversations aroundnewer cloud products. As TimeWarner Cable’s Kingcommented, “There’s a very low barrier of entry to bean over-the-top provider of software as a service or ofmany of the other cloud services. But there's a prettyhigh barrier of entry to become a network provider.”

Partnerships can be fruitful: For a growing numberof cloud services, other providers including softwaredevelopers, network components companies andothers offer proven solutions cable companies may notcare to replicate internally. “In some situations some ofthese cloud companies may actually provide (solutions)we can’t, so we could end up partnering with them,”said Cablevision’s McGrath.Product specialists are essential: Although certaincloud services such as hosted Exchange may lendthemselves to transactional sales models and evenautomated ordering, more complex IaaS and hostedPBX services require product specialists who can workclosely with larger customers to devise morecustomized solutions — and to close sales. Althoughexperts suggest this sort of “sales overlay” approach—a mix of transactional access plus product specialistsfor more complicated implementations —may prevailfor a long time, they believe a critical success factor willbe the ability to collapse certain cloud services intoeasy-to-order offerings that deliver sales efQiciencies.Cloud IT offerings can enhance company brands andperceptions: In the same way that entry into thebusiness telecommunications realm has helped totransform perceptions of cable providers, a deeperinvolving in cloud-based IT services can have apositive impact on the way companies are viewed bycustomers. BendBroadband believes its introductionof colocation and cloud services has done just that. “Ithink in the past, we were perceived as a residentialservices provider for the most part, even withDOCSIS® and even phone services in the businessspace,” said Vice President Wade Holmes. “Once weestablished The Vault, it really changed the perceptionof BendBroadband in the community as a truebusiness services provider.”

BUSINESS MARKET INTELLIGENCE FROM CTAM — CABLE AND THE CLOUD 6

viewpoints“It’s important to recognize that we havea history as cloud companies. We don’toften think of it that way, but our videoservices are fundamentally cloud services.There’s content being delivered over anetwork to a thin client that the customerhas, and some of it, such as pay-per-view,uses consumption-based billing. We arecloud services companies, and have beensince the beginning.”— Greg King, Time Warner Cable

Page 7: Cable and the Cloud: Strategies, Services and Success Stories

Illustrating some of the more aggressive approaches are:TimeWarner Cable, which has acquired a well-knownnational provider of cloud computing services, NaviSiteBright House Networks, which has acquired a hosted PBXvoice provider, Telovations, in its anchor Florida marketsBendBroadband, which has built and operates its ownregional data center offering a broad collection of cloudservices for business customersComcast, which has acquired two providers in the cloudIT space, Cimco and New Global Telecom(A list of selected cable provider cloud services beginson p. 13.)The most common approach among cable companies,however, is to offer a selected range of managed and hostedservices and products that fall under the broad rubric of“cloud” computing for business.One reason for the mix of offerings and a diversityof opinion on cloud services as a business has to do withdiffering perspectives about the role of cable companies inserving business customers historically. Until recently,most of the inroads cable has made in the SMB and largerbusiness markets have sprung from a transport role. Fromhigh-speed Internet connectivity for the small office/homeoffice market to dedicated private line Ethernet for largegovernment and enterprise customers, cable has mainlybeen adopted by businesses as a competitively priced,extremely capable alternative to incumbent carriers fordata connectivity and transport.

U.S. cable companies have exhibited varying strategies around cloud services.Some have deep portfolios of managed and/or hosted business services thatare branded as "cloud" offerings, while others have resisted overt entry into afragmented marketplace that seems to invite new competitors by the week.

Cable in the Cloud: Current Strategies

BUSINESS MARKET INTELLIGENCE FROM CTAM — CABLE AND THE CLOUD 7

viewpointsIn 2011, Oregon cable companyBendBroadband openedBendBroadband Vault, a Tier III datacenter that is a cornerstone ofBendBroadband’s strategy to become aregional leader in cloud computing forbusinesses. Wade Holmes,BendBroadband’s Vice President ofTechnology, believes the alignmentbetween BendBroadband’s expandedQiber optic network and the data center isa key differentiator: “Our thinking wasthat we’d be extending our physicalfootprint to so many businesses thatwere minimally served; and byconnecting them, we could make theirofQices an extension of our data center.”

Page 8: Cable and the Cloud: Strategies, Services and Success Stories

The “cloud” differs by thrusting cable providers intothe role of product provider and caretaker of essentialcomputing and IT functions businesses rely on everyday. One example here is providing a sales managementapplication via the cloud— a service that does notdepend entirely on providing underlying transport andnetwork. Another example is remote data storage, acommon application of cloud computing in whichbusinesses entrust their data to a third party that isresponsible for archiving and in some cases restoringdata in the event of a disruption. Here again, althoughcable companies may have some differentiatingadvantages by virtue of their managed networks andtheir trusted relationships with business customers,the end product is not inextricably tied to theownership and operation of a data network. As TimeWarner Cable Vice President of Product Managementand Vertical Markets Satyanarayana Parimi said duringan interview for this report, “The cloud is more aboutIT than it is about telecom.”Understanding how cloud services intermix and playoff the foundational role of cable companies asowners/operators of high-capacity data networks iscurrently an essential question companies are facing. Inthe most positive light, the trusted relationships cablecompanies have with thousands of businesses are seenas an entry point or invitation to establish deeperbusiness relationships and sell products that, as someput it, “go beyond the demarc,” orthe point where cable networkshand off trafQic to internal businessdevices. A more cautious point ofview is that it is exactly that samedemarcation point where cablecompanies concede marketdifferentiation and enter a highlycompetitive market for cloudservices that is populated withthe likes of Microsoft, Google,salesforce.com and (literally)thousands of independent, smalleraggregators of services.

BUSINESS MARKET INTELLIGENCE FROM CTAM — CABLE AND THE CLOUD 8

viewpointsAs it considers its cloud strategy, thecable company Bright House Networksmakes distinctions between “managedservices” that tend to be premise-based,such as managed Wi-Fi networks andmanaged local area networks forbusiness customers, and “hostedservices” such as hosted PBX, whichexhibit more of a “cloud” Qlavor. “I look atcloud as a hosted extension of a managedservices portfolio,” said Bright House VicePresident Craig Cowden at CTAM’s June2013 panel discussion on cloud servicesduring The Cable Show 2013.

Page 9: Cable and the Cloud: Strategies, Services and Success Stories

A third perspective, one expressed by several cablebusiness services strategists who shared their thoughtswith CTAM, is that not all “cloud” services can be neatlyplaced on either side of the network handoff point.Instead, there is a continuum of cloud services that havevarying relationships with cable’s familiar world ofnetworks and transport services. Some have a closerafQinity to cable’s network/transport heritage thanothers. They include offerings such as managed networkrouting in which the relationship between the cloud ITservice and the underlying network is tightly aligned, ormanaged security and intrusion detection services thatinvolve examination and treatment of trafQic Qlowingacross a network. More distant in terms of product-network kinship are services such as SaaS ordesktop-as-a-service, where it’s possible for customersto unshackle from a dependence on any particularnetwork provider in a “bring your own bandwidth” sortof accommodation.A thoughtful review of this continuum— from highlynetwork-dependent cloud services to those that aremore removed from network management —may behelpful in establishing priorities for entry and forsustained proQitability in the cloud computing market.Time Warner Cable’s Parimi suggests that thedetermining consideration may revolve aroundfocusing Qirst on network-dependent cloud services,where cable companies, by virtue of their ownershipand operation of managed networks, can differentiatethemselves from “over-the-top” competitors.

BUSINESS MARKET INTELLIGENCE FROM CTAM — CABLE AND THE CLOUD 9

viewpoints“We’re not relying on last mile accessfrom any other providers. We are doing itourselves. We’re extending the Qlexibility,reliability, the secure environment, toevery single one of our customers. As wedo that, and we gain their trust as aservice provider, it’s a naturalconversation to explore what otherproducts you can bring to them anddeliver over your Qiber network.”— Julia McGrath, Lightpath

Page 10: Cable and the Cloud: Strategies, Services and Success Stories

AT&T: Cloud solutions (under the brand name AT&TSynaptic) include storage, Computing-as-a-Service,Platform-as-a-Service and a specialty medical imagingportfolio. Alliance with IBM also offers high-end,enterprise secure cloud services backed by servicelevel agreements. Branding language: “Reduceinfrastructure costs by aligning business expensewith business value.”

CenturyLink: Branded “Enterprise Cloud Networking,”CenturyLink’s family of services includes virtualprivate data center, colocation, managed hosting. The2011 acquisition of data center operator Savvis for$2.7 billion signaled keen intent to play a large rolein the cloud. Main target for now is large businesses;CenturyLink does not advertise cloud servicesspecifically for SMBs.Frontier Communications: Little or no focus on cloudIT, but does offer data backup and recovery plusbandwidth on demand through an owned/operatedTier 3 data center facility. Branding language:“Ensure that your business is never interruptedby equipment bottlenecks, failures or unforeseendisasters.”

Level3 Communications: Attempts to createlinkage between cloud computing and networkownership/expertise. Assets offered include publicclouds accessed via core Internet backbone, privateclouds accessed via dedicated MPLS, private line andwavelength connections, and hybrid clouds connectedthrough any of the above. Solutions include storage,disaster recover, SaaS. Branding language: “Withcloud computing, the network becomes part of theapplication. Level 3 uses our networking expertiseto bring cloud service providers and cloud serviceusers together over a network cloud optimized foryour unique needs.”

TW Telecom: The largest business Ethernet providerpromotes an ability to create private networkconnections into public and private cloudenvironments. Branding language: “Our IntelligentNetwork provides better scalability, performanceand security than any other provider in theindustry—with no upgrades or changes requiredto existing network infrastructure.”

Verizon: A key competitive move was the 2011acquisition of the cloud computing and hostingcompany Terremark for $1.4 billion. Current family of“cloud” IT products revolves around the 2010 launchof a Computing-as-a-Service (CaaS) offering targetingcompanies with 20 to 1,000 users and allowing forautomated ordering and conQiguration of cloud serversfor storage, security, software applications and more.Branding language: “Helping revolutionize the waythe world shares, collaborates, buys, and sells.”

XO Communications: The national networking providerdescribes a range of cloud-based offerings includingon-demand IT infrastructure, security, contact centerand VoIP services. Branding language: “XO cloudservices can help you simplify the delivery andmanagement of services to your employees,customers and partners. In addition to making yourbusiness more agile, XO cloud services can helpimprove your bottom line so that you can investcapital back into your business.”

BUSINESS MARKET INTELLIGENCE FROM CTAM — CABLE AND THE CLOUD 10

Competitive WatchAlthough a wide variety of telecom, software and service providers are vying for various slicesof the “cloud” IT market for business, the cable industry encounters particularly intensepressure from rival telecommunications companies that have ambitions similar to cable’s.

Page 11: Cable and the Cloud: Strategies, Services and Success Stories

Facilities-based providers are part of a wider range of cloudcomputing companies that includes companies operating large datacenters accessible through independent or unaligned networks.The top 10 cloud computing companies as ranked by the newsaggregator SearchCloudComputing.com for 2012 were:1 Amazon Web Services: Targets enterprise IT, employs massiveserver infrastructure used by prominent companies includingNetQlix Inc.2 Rackspace: $1.3 billion in 2011 revenue; 80,000-plus serversin more than 233,000 square feet of data center space.3 CenturyLink/Savvis: 2011 combination of CenturyLink andSavvis combined CenturyLink networking/hosting assets withSavvis’s colocation and managed/hosted cloud services.4 Salesforce.com: Leader in enterprise-class CRM pioneeredmulti-tenant applications and computing.5 Terremark (Verizon): In 2012, launched a single-tenant cloudinfrastructure to answer demands for heightened securityfrom larger customers.6 Joyent: Provides enterprise cloud solutions for big customersincluding Dell; now licensing its platform to telcos as apartnership play.7 Citrix: Rising proQile for its open stack IaaS platform thatsupports large public cloud implementations.8 Bluelock: Focuses on small and midsized companies withblend of cloud hosting and managed IT services.9 Microsoft: Continues expansion of data centers to supportOfQice 365 cloud-based productivity suite plus public cloudconstellation named Azure.10 VMWare: Positioning its VCloud automation engine as a sort ofmiddleman for private cloud providers.

Source for rankings: SearchCloudComputing.com, 2012

BUSINESS MARKET INTELLIGENCE FROM CTAM — CABLE AND THE CLOUD 11

Cloud Competitor Market Rankings

Page 12: Cable and the Cloud: Strategies, Services and Success Stories

CTAM Cloud Business Showcase

BUSINESS MARKET INTELLIGENCE FROM CTAM — CABLE AND THE CLOUD 12

Numerous CTAM Business Services Council member companiesprovide technology, resources and guidance to cable companiesas they migrate to cloud-based business telecom and IT services.Members with expertise in cloud business services include:Business & Operational Support SystemsNetcracker www.netcracker.comCollaboration and Content ToolsAdobe www.adobe.comConsulting & StrategyTMNG Global www.tmng.comSand Cherry Associates www.sandcherryassociates.comCMG Partners www.cmgpartners.comData Acquisition & AnalysisESRI www.esri.comNeustar www.neustar.bizTNS www.tnsglobal.comData Centers, Hosting and IT ServicesBendBroadband vaultdatasolutions.comHostway www.hostway.comNaviSite www.navisite.comNetwork InfrastructureAlcatel Lucent www.alcatel-lucent.comArris www.arrisi.comCiena www.ciena.comCisco Systems www.cisco.com

Page 13: Cable and the Cloud: Strategies, Services and Success Stories

BendBroadband: The independent Oregon cable companystands out in the cable/cloudmarketplace by virtue of itswholly owned regional data center, BendBroadbandVault, launched in 2011 and certiQied by the UptimeInstitute as a Tier III facility. In addition to offeringcollocated leased data center space, BendBroadbandVault offers cloud services through partnerships withVMware and CommVault. They include:Vault Restore: cloud-based online backup anddisaster recovery servicesVirtual Data Center: Server and storagevirtualizationInfrastructure-as-a-ServicePrivate cloud designBright House Networks: Hosted Microsoft Exchangeand remote data backup are two pillars of the businesscloud portfolio. Also of note: A hosted voice service,branded Gadget, that combines elements of BrightHouse Networks’ business phone and broadbandInternet services to enable a full-featured businesscommunication solution allowing anywhere access tocalls and messages frommultiple devices (PCs, mobilephones and tablets).Cablevision (Lightpath): Cloud services includeOptimum Lightpath Hosted Voice, a cloud hostedbusiness voice service offering a variety of call features(auto attendant, call forward, selective call treatmentand more) plus uniQied messaging, mobility applicationsand collaboration/ conferencing features. In addition, adeep lineup of “Lightpath Managed Services” can beconstrued as cloud-based, although Optimum Lightpathintentionally does not use the term “cloud” in itsproduct branding. Among these are:Managed Wi-FiManaged backupCollaboration and conferencing servicesManaged video services

Charter Business: Cloud services for SMBs areprovided through a partnership with servicesenablement specialist Parallels. They include hostedexchange, data backup and website management,backed by a self-service portal designed to appeal tosmall businesses that may lack internal IT resources.Comcast Business Services: Prominent cloud servicesinclude:

Business VoiceEdge, a hosted PBX offering thatallows business customers to replace premise-based telephone equipment with a hosted solutionthat reduces capital outlays and allows moreQlexibility in adding lines and managing servicefeatures.The Upware™ Marketplace, a collection of cloud-based, third-party business applications targetedto SMBs and available for purchase via Comcast’sbusiness portal. Upware applications include databackup solutions from Carbonite and Mozy;security products from Norton and Websense,collaboration tools from Box (online storage),Microsoft (Web collaboration); Soonr (online Qilesharing) and YouSendIt (document collaboration).The Upware product set is designed to help smallbusiness owners simplify “what can be a complexworld of choices when evaluating cloud-basedservices,” explained Kevin O’Toole, Senior VicePresident and General Manager of New BusinessSolutions for Comcast Business Services in a blog post.Comcast’s cloud-for-business portfolio draws in part onresources of Colorado-based New Global Telecom, an IPvoice services provider acquired by Comcast in 2010,and Cimco, a Chicago-based telecommunications andcloud services provider Comcast acquired in 2011.

Large U.S. cable companies have deployed a mix of business IT services that fall looselyunder the “cloud” umbrella, with products, branding approaches and go-to-marketstrategies varying by provider. The following capsules offer selected examples:

BUSINESS MARKET INTELLIGENCE FROM CTAM — CABLE AND THE CLOUD 13

Addendum: Selected Cable Provider Services

Page 14: Cable and the Cloud: Strategies, Services and Success Stories

Cox Communications: Cloud offerings includeVoiceManager IP Centrex, an advanced cloud-basedhosted VoIP telephone system, delivering business-grade voice service over Cox’s private network. Thehosted voice service is positioned as a way to“eliminate the complexity of traditional PBX or keysystems and unite your entire business with a singlecommunications platform.”In some markets Cox allows offers virtualenvironments for storage and access to networkedcomputing resources, including Tier 4 data centersecurity/backup plus CaaS offerings featuring virtualportals that enable self-management of operatingsystems, leased servers and CPU/memory/storagerequirements. Among beneQits highlighted are:Pay less for hardware handling and housingGain improved business continuity with offsitecomputing and built-in redundancyDeploy repetitive computing solutions faster withfewer issuesIn August 2013, Cox announced a strategic partnershipwith data center operator ViaWest that adds colocationand cloud infrastructure services offerings in Cox’sLas Vegas, Phoenix and Southern California markets.

Suddenlink Communications: Services SuddenlinkdeQines as “cloud” based account for roughly 10 percentof total commercial and carrier services revenue,according to Mary Meduski, Executive Vice Presidentand Chief Financial OfQicer. They also represent a“mission critical” set of services for SMBs. Thattranslates to “stickier” relationships that bode well forcustomer longevity, she commented during a 2013Cable Show panel discussion.Cloud services offered by Suddenlink include managedWi-Fi networks and managed VPNs.Time Warner Cable: Hosted communication andcollaboration solutions for SMBs include MicrosoftHosted Exchange, SharePoint and Outlook applications,plus online backup.Enterprise and larger-business solutions are deliveredvia Navisite, the cloud services provider TimeWarnerCable acquired in 2011. Navisite/TWC Businessofferings include:Application servicesEnterprise hostingManaged cloud services

BUSINESS MARKET INTELLIGENCE FROM CTAM — CABLE AND THE CLOUD 14

Page 15: Cable and the Cloud: Strategies, Services and Success Stories

© 2013 CTAM: Cable & Telecommunications Association for Marketing All rights reserved.

Written for CTAM by Stewart Schley Content, LLC.