Monday, November 5, 2012

VCs See Cloud, OTT as the Place to Invest


It probably comes as no surprise that venture capitalists have shifted telecom start-up investment to software, services that are cloud based and run over the top. Hardware investments are viewed as having development and sales cycles that are too long. 

 “The lifecycle of infrastructure and services is very different. Services that run over-the-top of our networks can be quickly prototyped and co-created with innovative companies with less risk and smaller investment compared to infrastructure," says Ursula Oesterle, Swisscom (Palo Alto) VP.

The new business models are usually based on services that can be hosted on standard data center server hardware and software stacks and delivered to enterprises and consumers by carriers through Internet-leveraged sales campaigns.

All of that means "over the top" apps are getting much of the attention. In addition, consumer appetite has been building. 


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