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Understanding the Value of Service Delivery in the Cloud

18 Oct 2016 - 4 min read

The as-a-service concept has exploded in popularity over the last couple of years, and many communications service providers are weighing up the advantages of cloud deployments.

Much has been written about the virtues of moving functionality to the cloud. However, the focus has most often been on generic advantages that are not specific to the telecommunications industry.

To fill in this gap, we will use this blog post to dive into the daily business of communication service providers to highlight the tangible value of the cloud in our industry. At Symsoft, we see how our customers work smarter and focus better on their core business thanks to cloud technology, and we believe that this technology could help even more service providers thrive.

Thriving in a Rapidly Changing Market

The market for telecommunications services is currently experiencing rapid change in response to forces inside and outside the industry. The maturity of traditional services, relentless competition and the tremendous growth of mobile data are trends that affects all of the market. Combined with third-party applications relying on mobile connectivity and an increase in connected devices for the Internet-of-Things (IoT), this alters the playing field for the service providers that we serve.

This new playing field holds challenges as well as opportunities. To succeed, service providers must find new ways of differentiating themselves against the competition, moving faster and working smarter. It is our firm belief that cloud technology can help service providers achieve much of this.

From our experience, we see four ways in which cloud deployments place service providers ahead of the competition:

  • Responsiveness to market change
  • Operational efficiency
  • Capital expenditure
  • Security and service quality

Responsiveness to Market Changes

Moving service delivery to the cloud relieves you from the daily operation and maintenance of infrastructure, so that you can devote yourself to the creation of a superior customer experience.

While specific service features are still central to customers, they have lost their status as the key differentiator. As services have matured, it is no longer the superiority of individual services that attracts customers, but a superior total customer experience.

Purchasing service delivery capabilities on an as-a-Service basis helps service providers adapt their capabilities to match customer needs, whether it be by pursuing new channels, providing cost savings or by building partnerships which can further add value to the service offering.

Operational efficiency

For many years, service providers leveraged consolidated service delivery platforms to increase efficiency. Cloud deployments take this development even further to enable you to work smarter.

By moving service delivery to the cloud, economies of scale can be exploited, potentially lowering costs substantially. For example, hardware as well as system maintenance and monitoring can be shared across several providers, minimising the overall cost of delivering services.

Cloud deployments also allow for superior scalability. This is especially important for service providers and specific services with low traffic volumes that cannot always justify costly infrastructure investments. Today, some services are required by the market but are used to such a limited degree that stand-alone systems does not scale down to the levels even near the capacity needed. Cloud deployments can efficiently offer much lower capacities, with the ability to grow when the need arises.

Capital expenditure

The as-a-Service business model allows service providers to pay for the capacity they need rather than investing in and upgrading physical systems.

Service delivery infrastructure represents a major investment for service providers. In addition to having a major effect on cash-flow, it also represents a risk: hardware depreciates and it can be hard to predict future customer service preferences or market growth.

Cloud deployments ensure that service providers never pay for more capacity than they need, creating a more scalable business model.

Security and service quality

Today’s businesses can greatly improve the security and service quality by relying on managed service experts and virtualised platforms.

Keeping infrastructure secure, up-to-date and adequately monitored requires considerable skill and effort, all of which comes at a cost. Using a virtualised platform in a cloud environment increases system stability and security because cloud vendors can intercept potentially harmful traffic before it causes issues, and due to the sheer scale of the cloud vendor they can afford the specialist skills to keep the underlying and standardized infrastructure secure.

Realising the promise of the cloud

In all the areas we’ve explored, cloud technology shows great promise for service providers. Moving into the cloud gives you access to fully managed service delivery solutions that can quickly scale to meet your capacity needs and pay only for that capacity. To fully realise the potential of the cloud, be sure to talk to an expert in the field to better understand what you should think about when planning for your transition to the cloud.

Originally posted on www.symsoft.com, find out more about Symsoft’s rebrand to Sinch in the press release here.

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