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There is a big difference in what is expected from Telcos in developed world vs what is available from them in developing world. The focus of Telcos in developing countries is still limited to providing the basic services. For them to move towards providing Cloud services will require a lot of forward thinking on their behalf. Till that time, users have to be content with Amazons and Rackspace of this world.

Dear KLC, I agree that providing Cloud computing services like hosting or even delivering SaaS is potentially an additional source of added value for Telcos. This being said, they will need to provide such services at the right performance/reliablity/price combination and compete with specialized supplier like Equinix, Amazon, Rackspace or toher. Moreover the end-user experience will still depend on how the traffic is controlled over the WAN, mainly from the branch (the Telco's hosted cloud traffic will combine with the entreprise's private traffic anyway). Cheers, Thierry.

Since the telcos own the network and control access, and since the telco infrastructure that runs their networks is comprised of many robust centers spread geographically, why wouldn't the telcos simply add processing and storage in their network locations and sell cloud computing. From what I've seen out of the current lot of public providers (Amazon, Google, Microsoft, Rackspace, etc.), I am certain the telcos would provide far superior reliability, especially in light of the horrific track record in cloud in that last 6 months. They should also be able to be competitive since they are combining network, processing, and storage.

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