How Can Telecom Equipment Makers Take Advantage Of Cloud Services?

I've had a couple of interesting discussions about telecom and network equipment makers in the last few days. How can they take advantage of the cloud mania? Here are some quick thoughts:

1. Offer their equipment on a pay-per-use basis. Requires them to assume capital risk and bulk up the balance sheet. Might cannibalize gear sales. The usage pricing should be attractive for occasional use, but unattractive for constant use.

2. Create a cloud service that complements and advantages their telecom gear. Since the equipment sits in telecom operators and service providers around the world, work with customers to create a service that builds on data collected, with permission, from the experience of those customers.

3. Explore whether there's a service-only offering that is attractive to operators and hosters. Can a telecom equipment vendor offer capability as a cloud service, rather than as an on-premise product? There's probably something, but I don't know the market well enough to know. But I can't imagine cloud services fully replacing on-premises equipment.

What are your thoughts on how telecom equipment makers can take advantage of cloud services opportunities?

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PBX in the cloud (aka

PBX in the cloud (aka Centrex). Firewall in the cloud.