& cplSiteName &

Exploiting Cloud-Network Synergies to Boost Enterprise Customer Satisfaction

James Crawshaw

According to a Huawei article the digital transformation of industries can be divided into three stages: connectivity (of equipment and processes); system monitoring/optimization; and intelligence. As applications and networks evolve toward SaaS and SDN, companies are demanding greater connectivity. At the same time, the fast pace of technology obsolescence means that enterprises want to consume connectivity as a service rather than building their own infrastructure.

Large companies focus on international network access acceleration and the deployment of hybrid cloud. Midsized companies seek the flexibility of dynamic bandwidth and elastic computing. Small companies need one-stop ICT services to avoid getting bogged down in non-core activities. These differing requirements present opportunities for ICT service providers including telcos, especially the system monitoring aspect which has traditionally been an area of greater transparency for telecom operators than cloud platform providers. Adding intelligence (AI, big data analysis) into the mix is arguably a greater challenge for telcos; one where enterprise software vendors and IT service providers are better positioned.

According to a UN report on the "information economy," the ICT industry has historically been supply- rather than demand-driven. Vendors have pushed services based on the available technologies rather than on customers' needs. However, the ICT industry is shifting to be more demand-driven. Cloud services in the future will not be limited to data centers, but will rely more on connectivity and provided in an end-to-end manner. From the UN's perspective, this is important for its fight against poverty by enabling a reduction in information search and transaction costs, and improved communications within supply chains leading to increased market efficiency.

The telcos' advantages in the enterprise market versus cloud providers include localized professional services, security, bandwidth and quality of service. The challenge for telcos is to achieve cloud-network synergy: making cloud the gateway to develop new B2B services. Telcos must leverage their strengths to help governments and enterprises around the world go digital.

One example is the solution Huawei provided for Guangdong Telecom, which spanned Cloud Communications (PBX, video conferencing, contact center), Cloud Connectivity (VPN, mobile, leased line), Cloud Services (server, storage, desktop), and Cloud Applications (IoT, CRM, office mobility). Huawei claims the solution reduced the total cost of ownership for enterprises by packaging together cloud services and traditional fiber services. It also reduced the upfront cost and obsolescence risk for enterprises by allowing them to lease the customer premises equipment. Huawei claims that Guangdong was able to increase its enterprise customer base by 300,000 and raise ARPU by 1% by adding these cloud services to its portfolio. Guangdong was also able to reduce opex significantly by replacing the old TDM PBX infrastructure. Enterprise customers were happier too with churn reducing by 1.5 percentage points.

Based on this case study it would appear the primary benefits for Guangdong Telecom of adding cloud services to its portfolio were new customer wins, reduced customer churn and reduced opex.

This blog is sponsored by Huawei.

— James Crawshaw, Senior Analyst, Heavy Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
More Blogs from Heavy Lifting Analyst Notes
During the "Getting to 'Cloud Native' " panel at our NFV & Carrier SDN event, we will debate what it will take to enable telcos to execute their cloud transformations, and what the supplier community's responsibilities are in the process.
To succeed in the enterprise market telcos need to play to their strengths.
Fiber is making a comeback and converged access infrastructure is helping to push the market collectively towards 5G and other services.
By customizing cloud services and providing a more holistic solution to business customers' needs, traditional telcos can increase their chances of winning in the enterprise market.
Featured Video
From The Founder
The 'gleaming city on a hill,' Steve Saunders calls it. But who is going to take us from today's NFV componentry to the grand future of a self-driving network? Here's a look at the vendors hoping to make it happen.
Flash Poll
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 2, 2017, 8 Northumberland Avenue – London
November 10, 2017, The Westin Times Square, New York, NY
November 30, 2017, The Westin Times Square
All Upcoming Live Events
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Could 5G Have Found Its Glass Ceiling?
Dan Jones, Mobile Editor, 9/20/2017
1 Million Pirate Set-Top Boxes Sold in the UK
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 9/20/2017
Comcast Shuts Down OTT Again
Mari Silbey, Senior Editor, Cable/Video, 9/19/2017
WiCipedia: Endangered Species, 'the Pao Effect' & Bad Actors
Eryn Leavens, Special Features & Copy Editor, 9/22/2017
Charter Has a Secret TV App for Colleges
Mari Silbey, Senior Editor, Cable/Video, 9/20/2017
Animals with Phones
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed