The provisioning and availability of virtualized resources through the Internet is transforming the business models of applications and communications services providers. Cloud Computing potentially provides all customer segments with enhanced usability and functionality at lower total cost.  

The opportunities are huge, but they come with key strategic challenges.

Critical Issues Include:

• How to manage the transition away from their traditional business model to address the hosted/virtualized model, from sales to implementation and support
• How to effectively price services for each target market
• When and how to collaborate effectively in a complex ecosystem of complementary and competitive, sometimes competing partners
• What is the value proposition required for customers in target market segments to upgrade from legacy solutions?
• How to evaluate which solutions- hosted, on-premises or a hybrid- best meet the needs of each customer segment