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Cloud prevalence making telecoms more efficient, report says

Cloud computing continues to gain ground in a number of different industries, leading service providers like telecoms and multiple system operators to take advantage of the technology. As a result, these distributors are becoming important vendors for small and medium-sized businesses utilizing the cloud, according to a report by AMI Partners.

In emerging markets like China, Brazil, and Russia, SMBs will spend roughly $615 million on the cloud in 2015, increasing from only $111 million in 2011, AMI Partners noted. There are several reasons for this increase.

The first is that larger telecoms and other service providers are acquiring smaller vendors, enabling them to sell more products, such as basic Software-as-a-Service solutions for accounting and business intelligence. Additionally, these distributors can then bundle cloud solutions with high-speed internet, making them more desirable for SMBs, the report said.

"As the demand for cloud services continues to rise, SMBs in emerging markets will require access to high-speed internet to increase business efficiency; it is the service providers who are uniquely positioned to offer such packages," one analyst said in the report.

According to Innovation Observatory, this positioning will give telecoms the ability to distribute multiple clouds, turning them into brokers that basic cloud providers should be prepared to deal with in the growing competitive market.

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