Video makes its way into the IP cloud

By Jim Barthold

In this three-part article, Jim Barthold takes a look at ways video is entering cloud computing, both in the enterprise and consumer market.

Like Judy Collins, the telecom industry is looking at clouds from both sides now. In this instance, though, the cloud is the amorphous IP-in-the-ether and both sides are consumer and enterprise.

Computing in the cloud is a buzzword in the enterprise space with backing from such big names as Microsoft, Google, IBM and others hoping to manage IP services for businesses-generally starting with lower level small-medium-business (SMB) customers who can't afford or don't want an IT staff. With cloud computing an outside agency takes care of the company's IP needs from phones to data and even, but not as often, video, in a model that mimics the Application Service Providers (ASPs) of earlier this decade. 

Video in the cloud is a different story. There are still commercial applications-sales training videos, educational, even company-wide infomercials-but video has been a consumer function traditionally. As a result video services in the cloud are targeted at average consumers and their laptops, desktops, cell phones and, as a surprising afterthought, their televisions. 

Unlike its enterprise counterpart, the consumer video business is just getting started and has many, many hurdles to overcome before anyone will become rich from it. Still, while the content will be in the cloud, those supporting it won't have their heads there but will be well grounded with good business plans. 

"While we think of cloud computing as an enterprise thing there's applicability within the consumer entertainment space and we're not the only ones talking about it," said Greg Ireland, research manager of consumer markets: video for IDC. "Whether it's your over-the-top video provider, service provider, equipment folks, consumers looking for content on their terms, all these things are going on that may someday coalesce into the big bang of cloud-based video." 

Someday is not tomorrow and probably not even this year. Right now cloud computing, even with video, is an enterprise activity with a bit here and there in the consumer space. 

A surprisingly big enterprise cloud player is Google, the company that paid billions for the user-generated video content pioneer YouTube. 

"The big difference between Video for Business and YouTube is it's ‘YouTube in a suit,' as one journalist called it," said Andrew Kovacs, a Google spokesman. "We've put this protective wrapping around it so that there's secure sharing and access control; it's not possible for users within a company to share their video publicly." 

That protective coating factors when video moves into the consumer cloud.

"The big barriers (become) content rights issues," said Ireland. "That's tied to the evolution of the business model, tied to the erosion of legacy businesses."

Continued...