With the tremendous growth in the telecom sector in the past two decades, the amount of data generated is also huge that has increased a substantial burden on the CSPs’ (Communication Service Providers) legacy IT systems.CSPs are under the constant pressure of modifying their business models in order to better compete with the affordable cost and digital services of ICPs (Internet Content Providers). The market is changing continuously and in order to keep up the pace, CSPs are now exploring new business models, expanding into new industries, and even launching digital services. Nonetheless, to ensure the success of these novel endeavours the Telecommunication Service Providers (TSPs) must adopt agile IT systems to develop the business and to support the existing business operations. Until last year (2020) almost 15% of operators surveyed by the TM forum were expected to migrate all their BSS to the cloud in comparison to 4% in 2016. Out of these, 44% believed that more than half of BSS will be in the cloud by 2021.
What’s driving TSPs to move to cloud BSS?
In a recent interview the VP of one of the renowned BSS suppliers in the market stated the challenges of moving BSS to the cloud “If I go to an operator and offer them a BSS cloud service or capability, the customer says, ‘that’s lovely – I have 130 systems, some of which are mission-critical, some need to respond within milliseconds and I have auditors breathing down my neck.’ It’s difficult than to make the case.” With the traditional BSS system this was a challenge, but now with the cloud BSS operators can overcome such issues. In fact, telecom operators can achieve various objectives for digital transformation with this technology. Also, good business sense can be made from cloud BSS when CSPs can deliver more cloud-based products.
Though migration of BSS to the cloud has started slowly, one of the recent researches by TM Forum found out that it is gaining momentum. This research was conducted on 50 professionals belonging to 49 different CSPs including CTOs, CIOs, Chief architects, VPs, and IT architects. Most of the operators agreed that migrating to BSS is going to be an evolutionary process. Also, when asked
How to Get There?
TSPs can start migrating to the cloud by adopting hybrid models by following one of the two approaches given below:
With this migration, TSPs are expecting to relish scalability in their systems, followed by consolidation, decreased OpEx, more agility, and savings due to less CapEx.
Being Cloud Confident
It’s true that earlier Tier 1 CSPs were not in favor of ripping out their BSS due to the size and complexity, but now with the option of Cloud BSS, they are very comfortable. The reason is rapidly increasing familiarity and confidence with the cloud. Now TSPs have a clear vision about their networks shifting to the cloud in the next five years. If we consider the Tier 2 and Tier 3 operators, then their cloud experience is less than that of Tier 1. Also, if these organizations are offering cloud services to their B2B clients, then they are most likely to be third-party that are bundled with their core propositions. Thus, only the executives who have been given a strong mandate to shift towards the cloud for customer-centric decision making can know the real benefits of new cloud-based systems. The Tier 4 and 5 operators incorporating mobile virtual network operators (MVNOs) and niche TSPS are most likely to shift to cloud BSS. They know that SaaS models require little up-front investment, thus find them attractive. When we are talking about SaaS-based cloud BSS, Echelon Edge is the one offering it with the option to customize and flexibility to the TSPs by taking responsibility for software and infrastructure.
How better ROI is generated with Cloud BSS?
Now when CSPs have moved to cloud BSS, they are reaping numerous benefits including accelerated time-to-revenue (TTR) and time-to-market (TTM), improvement in top-line growth, reduction in capital expenditure, and scaling with elasticity. Various other operation advantages are also there such as the ability to extricate IT teams from a manual, broader focus on business missions and commercial enablement, lower levels of the infrastructure stacks and legacy-laden tasks like non-core competencies of managing compute. When a CSP moves to the cloud it locks in key financial, technological, and operational benefits that even pave the way for the 5G technology. When it’s combined with the BSS components, cloud adoption can help in cost reduction and also enhance agility.
In summary, TSPs are aggressively moving monolith OSS and BSS to the cloud and the reason is not just higher revenue generation, but also cost reduction with more agility, innovation, and personalized experiences.
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