It is a fact that cloud computing is transforming the communications industry. From IT modernization to network virtualization, which also has huge market impact, cloud is the driving force behind most Communication Service Provider (CSP) transformation strategies today. ). But sometimes the business case is unclear, and often the options for getting it wrong can be clearer than the path to getting it right. About the Author Francesco Venturini, Senior Director and Director, Global Communications and Media Industry, Accenture. The past decade has been a season of intense disruption and transformation in the communications industry, driven by emerging technologies, groundbreaking new services, and a complete shift in business models. And this transformation will only accelerate in the near future, as the planet becomes hyper-connected through 5G networks. However, as this occasion creates a new value chain at the intersection of connectivity and cloud, it is not only open to the telecom industry, but also offers new territory that can be captured by cloud hyperscalers. , platform companies and multiple other ecosystems. players. For each of them, a new set of cloud-based opportunities is created, software and technology quickly become a differentiator, platforms become open and standard, data and technology adoption. AI is accelerating, and modern design and engineering practices are leading the way. way to increase competition in the market. To avoid being left behind, communication service providers have no choice but to transform into a “telecom technology” organization, using technological innovation as a key differentiator and catalyst to capture value. Cloud, data mining, and a new value-focused operating model are becoming the foundation for this new path.
First of all, take the opportunity to innovate
So what is the opportunity that cloud offers for CSPs? Indeed, there is a gradual migration and modernization angle, with a business case driven eminently by cost optimization, efficiency and resiliency. Mas Cloud offers considerably more. It is going to be the driving force not only for a new economic path that provides business sustainability for the future, but also for entirely new processes, operating models, organizations, products and services. Cloud is becoming the foundation for communication service providers to take advantage of emerging opportunities. First, accelerate the adoption and automation of digital channels and lay the foundation for transforming data into information across the company. With this foundation, communication service providers can expand into the digital home, which is a hugely missed opportunity. Also thanks to the cloud, communication service providers have a great opportunity to help small and medium-sized businesses boost their economic restoration through extensive services in commerce, online collaborative communication, and security. And finally, by integrating 5G Cloud Edge into their networks and expanding its platform, including real-time data, security and software services, CSPs have an opportunity to create a single platform to drive the huge opportunity of the connected industry / B2B2X.
Remember the guiding principles
To spearhead digital innovation for their service customers, communications service providers must consider multiple principles as they accelerate their transition to the cloud. The first is scalability, which is achieved through the adoption of a multi-cloud strategy, employing both public and hybrid cloud models to leverage the strengths of multiple vendors and provide greater flexibility through choice. Maximizing hyperscalers is key to a multi-cloud strategy, but a clear strategy for your adoption of an IT, network and go-to-market approach must be clearly defined and organically executed. Jio, for example, works with Microsoft Azure as it prepares to take advantage of 5G opportunities in India. The partnership combines Jio's IT infrastructure with the Microsoft Azure cloud platform, using data centers across the country to accelerate transformation across the country. The cloud also has the potential to optimize costs, but only if CSPs embrace it and consequently reinvent their financial processes and models to be more agile and flexible. It's not a smooth fit; it is a separate process change to shape the cost curve. Rakuten Mobile achieved this by launching a fully virtualized cloud-native mobile network last year, completely reinventing the way the network is built and operated. This has allowed Rakuten Mobile to reduce its network operating costs by thirty percent compared to other mobile operators, as it develops and releases software faster than its contenders. Speed is another essential principle closely related to reinvention. Rapid change has generally not been easy for CSPs, which often have longstanding ethnicities and structures that stand in the way of progress. But to maximize cloud opportunities and keep up with continuous innovation, communications service providers must evolve at pace and at scale. This means embracing new cloud technical architect skills, new composite team organizations, and diligent methodologies, which will help unlock new untapped value opportunities in digital services.
Be careful with 'Lift and Shift'
Bottom line, communications service providers are going to approach and experience their cloud journeys in very, very different ways, depending on their circumstances, business drivers, and ambitions. And each of them will face their challenges along the way. But one thing should not be forgotten: it is not enough to simply migrate to the cloud. Any business can do it, and that in itself does not produce any significant and lasting competitive advantage. So the final leg of the journey to the cloud is the ultimate end game for CSPs: a complete transformation of the CSP into a telco. It is a software company that harnesses intelligence and innovation, thanks to a new cloud-based operating model and an open and secure software foundation. The telecom and technology paradigm places technology at the center of CSP business and innovation strategy and, essentially, is the way to do cloud right.