Categories: Telecom

Cloud BSS – The next digital transformation, are CSPs ready to explore the opportunities and challenges?

Cloud BSS – EchelonEdge

Digital Transformation is on the rise and individuals and businesses both are embracing this by utilizing it to bring engagement and do a lot more. Now people are using mobile and other interactive tools to determine who to trust, what to buy, and where to go. With this transformation, continuous technological changes are taking place all around the globe.

One such technological advancement is Cloud Computing which is raining down on almost every industry. It is now being recognized as essential for the growth of businesses in the modern digital climate.

Based on our research, we are trying to showcase how the network operators that have recently adopted Cloud BSS (Business Support Systems) are making it work. According to a recent survey from RightScale, about 95% of the 1,000 organizations surveyed belonging to various industries are either running on the cloud or are opting for IaaS (Infrastructure as a Service).

The Future is Cloud BSS

The future of the BSS is in the cloud either private, public or hybrid though the path to get it is not simple. The fact is that telco operators are already having very complex ecosystems integrated with many surrounding systems. A smooth execution plan is required to fulfill the customizations and integrations. In the year 2010, the IBM Global CEO study also found that the complexity of the working environment can only be mitigated with cloud technology. Today the next digital transformation is taking place and to move businesses to the cloud successfully, it’s essential to explore the opportunities and challenges.

This is a time when CSPs (Communication Service Providers) are looking forward to adding next-gen competencies into their networks. Many of them don’t have a strategic roadmap to migrate their BSS to the cloud and generally, the primary reasons for cloud adoption are purely commercial. BSS market is expected to increase by $ 41.66 bn from 2021 to 2025, as per the latest report by the Technavio

What is Cloud BSS?

We can define cloud BSS as an evolved BSS application’s architecture that takes advantage of all the benefits of the cloud infrastructure, like automatic stability, deployment automation, built-in high availability and resources usage efficiency.

Cloud BSS model is designed in a way that it delivers more flexibility to the operator. With a cloud in the picture, the CSPs can pre-integrate, deploy and incorporate better processes and applications that follow a modern approach to create, deliver and operate services offering quick time to market.

The ISPs now want to have a commercial model that can deliver personalized experiences including a flexible “pay-as-you-use” and “build-as-you-grow” model enabling minimum upfront cost and low maintenance cost. Thus, all the operators are eagerly looking for a cloud-based BSS that can efficiently deliver business agility while following a standardization-friendly approach. They want to meet the increasing capacity requirements and a scalable infrastructure like cloud BSS can help with that.

Why Cloud BSS?

If we talk about the key benefits of cloud computing for an enterprise, then lower infrastructure costs and quick resolution are the primary ones. Although, things take time and even the telcos have to wait to experience the amazing benefits of cloud technology. There’s no doubt that with a tremendously increasing customer base CSPs’ traditional revenue is continuously under pressure. The reason is that the cloud providers are also competing for the control of the customer. Hence the adoption of cloud-native BSS seems to be the only option to modify business models and experiment with new ways of running a business.

Numerous telecom operators are struggling with innovation today because they lack flexibility in their back-end systems. Due to this, they might take a year or more to launch any new services or products into the market including changes in pricing plan, implementing a new way of communication with the consumers. And with such a delay costing also increases which eliminates any scope of experimentation.

Migrating to Cloud

Even though most businesses and telecom operators want to migrate to the cloud, progress is quite slow. Even an MNC like Vodafone Group which is fully committed to the cloud has only shifted 1/3 rd of its systems in its UK operating company. So, it’s necessary to have a holistic strategy when migrating to the cloud because currently, the companies are starting out slowly. This is proven in research in which out of 74% of the operators surveyed only 10% of their BSS is a cloud.

We can see various organizations that are taking their senior leadership teams on visits to leading software companies in the Silicon Valley and many others have visited startups like Reliance Jio or Japan’s Rakuten Mobile (companies that have completely moved to the cloud). This is being done to experience the nuances of cloud migration. The first challenge that CSPs have to overcome is a lack of enthusiasm at the top of the organization. Also, without a strategy, the cloud migration might fall victim to short-term budgeting decisions. There are many operators whose approaches towards cloud migration were poorly conceived and the risks backfired.

Will the lift-and-shift pay off?

The simple lift-and-shift cloud migrations seem tempting considering the cost-saving opportunities it offers. But this is not the case in reality; Brazilian CSP’s CIO stated that “Whenever I did a calculation in terms of cost benefits, I found that the numbers were not there”. The most suitable option is to leave such a job on the experts and seek advice from professionals. At Echelon Edge (CMMI L3 Company), we have a team of experienced personnel who have spent years in this industry and could help you with all your queries related to cloud BSS and its migration.

Anubhav Goel

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