Coopetition Model for Cloud App Providers and Telcos?

Discussing the future of apps in the cloud, IBM enterprise initiatives VP Mike Hill and Salesforce.com director platform research Peter Coffee said the line between competing and cooperating was becoming blurred, with "coopetition" the likely result.

“The only place we tend to have some level of friction with service providers is when you’re up in to the largest organisations,” says Hill. “We see service providers as a huge platform opportunity for us here, because we’re going to take the platforms that we build in IBM to deliver these services, and we’re going to pitch and sell it to service providers so they have the opportunity to white label services from us; or even white label to start with so they don’t have to invest capital up front.

Coffee says the Salesforce.com model provides one example of how application providers and Internet service providers can cooperate for mutual benefit.

“We have our services being re-sold by telecom providers who want to take advantage of the fact they already have more than their foot in the door, they’re already completely inside the door as a small business service-suite provider.”

"British Telecom packages and sells our CRM application as a service as part of BT’s small enterprise suite, and there’s absolutely no reason why we wouldn’t want to foster that because that means their skills, their knowledge of the local marketplace, local business customs, local regulations, becomes a leveraging factor for us to do what we do, which is to provide enterprise functionality, and then they make it relevant to the local market," Coffee says.