Not yet, then don’t worry; we’ll uncover all the secrets about it. in the world of telecom, the fact is that the operators can save a lot by moving IT and network stacks onto the cloud. If we talk about the exact number, then it completely depends on to whom you are talking. But there is one thing that is common in all: the scaling of services. One of the telco CTO stated that the companies can save about 50% CapEx by shifting their IT infrastructure to the cloud. Generally, 80% is the figure and it is a huge number that one can’t ignore. But, Cloudonomics is much more than just capital expenditure savings. One can define it as the operational savings that are generated by crossing over the constant hardware and software update roundabout. When you have the systems designed with the principle of customization and configuration. Now as the time to market is reduced, there’ll be additional revenue and also you can roll out more responsive offers quicker than the competition. In industrial terms, we can say that cloudonomics helps in defining the business cases that are driving the urgent need for cloud-based telco systems. Also, according to the IDC, managed services will grow to $74.9 billion by the end of this year. More businesses are moving towards cloud-based services and storage because of the cost-effectiveness and convenience being offered.
Better than the traditional
Though this approach is new, it has already started stirring up the market. It’s offering much more than the traditional telco business models; it can reduce network and IT costs by running open cloud-based systems. Now, if you are wondering about the strong competitors who have already captured a large part of the market, then the cost savings can help in undercutting established competitors bypassing a percentage of the savings onto the customers.
In the below-given figures, you can see the differentiation between the traditional CSP and Digital Service Providers. These diagrams were published by TM Forum in one of their white papers. It’s evident from the images how the evolution is taking place in the IT stacks. In the TM Forum research, it was also pointed out that 42% of the CSPs have just started on their transformation journey, but virtually all the service providers have agreed that digital transformation is the key to a successful business. If you’d ask the experts, then they’d say that the right time is now to become a cloud-based telco.
With cloudonomics comes streamlined BSS that ensures effective monetization and management of all the related services in an easier way. Now the need to change the code to add a new service on the operator’s demand is eliminated, as with 5G operators can monetize anything they need to. In short, any service that is delivered over a 5G network can be monetized. Here we are talking beyond charging for data and selling connectivity.
What’s the best thing that operators are getting?
The highly configurable 5G-based service models can be easily sold from an app-based online store. To manage QoS (Quality of Service), real-time usage, network slicing, and cost of services, there are charging rules and advanced policies. The digital operators are capable of selling highly valuable SLAs (Service Level Agreement) to serve the customers. It is just one example of how cloud-native, streamlined BSS will aid operators to take center stage in the 5G value chain. This is how the new age of cloudonomics in telecom is being defined, but there’s still a long way to go.
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