Today, any hosted service is described as belonging in the cloud. We are told that cloud services are both an opportunity and a threat to the telecoms industry. On the one hand, cloud services enable Telco’s to increase the range of services and applications that they offer to their clients. On the other, the advent of cloud technology allows so-called "over the top" providers to offer services that compete with those from the Telcos. You can also navigate to to get more knowledge about the cloud-based services.

So what is the cloud? Well, in a way it's been around for a while. A couple of years ago we were using a slightly different nomenclature – remember anything as a service.  Before that, we talked about hosted services and way back in the distant past the buzz was around ASP or Application Service Provision.

For our purposes, we think there is a clear boundary to be drawn and it's illustrated by the case of classical value added services. While the term cloud services are often used to refer to the storage and processing power that is available across internet connections, it has also begun to be used to encompass more traditional hosted services.

We think the line is the boundary of the Telco network. As soon as that is broken and services interact via IP, then we may more accurately term the application a cloud service. Of course, that's an arbitrary judgment, but it seems reasonable for now.