Revolutionizing the Cost Equation for Telcos

Research shows that 83% of Telcos see cloud-driven transformation as very or extremely important to their organization’s future strategy and growth, with 66% recognizing cost reduction as a key benefit. However, 61% don’t have a data management strategy in place and only 18% understand the potential of data, highlighting just how many Telcos clearly still underestimate the true value of their own data.

Read the full story below

Revolutionizing the Cost Equation for Telcos


Digital transformation is the buzzword of choice across many industries at the moment but it’s of particular relevance for the Communication Service Provider (CSP) sector, where successful digital transformation initiatives have the potential to revolutionize the industry. For CSPs, the focus should be on cloud-driven transformation, embracing the public cloud to not only modernize their IT infrastructures but to serve customers digitally in new ways, all while optimizing performance, reducing costs, and significantly boosting revenues.

Research shows that 83% of Telcos see cloud-driven transformation as very or extremely important to their organization’s future strategy and growth, with 66% recognizing cost reduction as a key benefit. However, 61% don’t have a data management strategy in place and only 18% understand the potential of data, highlighting just how many Telcos clearly still underestimate the true value of their own data.

Meet us at MWC Barcelona

MWC Web Banner.png

The power of the public cloud has the potential to change this perception, enabling organizations to use their data to its full potential and revolutionizing the cost equation for CSPs. It can deliver multiple benefits right across the business, all of which serve to reduce costs. But the net benefits of moving to the public cloud include more than just reduced cost - It can also contribute to improved revenue, with benefits to be gained from new innovation and data insights you can gather, both of which can be a major driver of new Customer Revenue.

Increased cost effectiveness

One primary benefit of moving to the public cloud means lower data center costs, with CSPs able to fully leverage pay-as-you-use models. Costly overheads such as server utilization, hardware, and hardware maintenance, disaster recovery, and service assurance are eradicated, along with the expense of the third-party software needed to support these. Lowering your data center costs fundamentally relates to your existing and future infrastructure needs. Many enterprises that have embraced public cloud have seen dramatic reductions in their costs.

At the same time, staff budgets can be optimized. Operations is a hugely manual task that requires people above all else. By increasing automation, making full use of machine learning and AI capabilities, CSPs need fewer people dedicated to time-consuming manual operations. This not only reduces costs but frees up staff to focus on more added-value tasks, which has the knock-on effect of generating more revenue.

Driven by data

Improving customer experience has been seen as a major factor in increased revenues in many industries, and while having data is important, knowing what to do with this data is vital. By harnessing the power of the public cloud, CSPs can become truly data-driven, making sense of the mountains of data available to underpin and inform valuable business initiatives. These could be cost-saving initiatives, such as reducing the amount of ‘care resources’ in contact centers, or revenue generation initiatives, such as the introduction of new products and services to improve the overall customer experience.

By leveraging the available data across all applications and infrastructures, CSPs can benefit from new levels of business agility, with data-driven decisions at the heart of all operations and decisions. Additionally, the scalability and flexibility that only the public cloud can deliver enhance this agility further still, enabling organizations to move more quickly in response to fluctuating market conditions and changing customer demands. It’s only by achieving this agility that CSPs can readily seize any opportunities that arise and confidently handle any challenges that come their way, no matter how disruptive.

It’s widely agreed that CSPs need to accelerate digital transformation and a move to the public cloud represents the most effective way of doing this successfully. The power of the public cloud can result in a 50% decrease in costs. Coupled with a potential 30% increase in revenue, this could equate to an 80% net improvement on the bottom line, a figure that certainly warrants further investigation by CSPs who are serious about their digital transformation plans. The public cloud has the potential to revolutionize the cost equation for CSPs. For businesses considering making the move cloud-ward, surely it’s no longer a question of ‘if’ but ‘when’?

For more information on how ZephyrTel’s experts can help with your move to the cloud, contact sales@zephyrtel.com.