Service providers can capture the B2B cloud market now.
October 8, 2018
Service providers have a massive opportunity in B2B cloud services before them as enterprises move aggressively to all digital and cloud-based IT and communications. As they focus on large-scale SDN and NFV initiatives to bring combinations of next-generation connectivity and high value cloud services to market, transforming to a cloud-native solution can take more time than this market opportunity will allow. Service providers have not been offered a supplier-provided, fully-managed telco cloud to help them jumpstart their B2B cloud market entry,. The landscape has now changed, however, because Netcracker has delivered on the fully managed telco cloud vision and helped service providers to bring B2B cloud services to market in weeks rather than years.
Key Challenges and Hurdles
It can take service providers 1 to 2 years to deploy new B2B connectivity and cloud services on their own because the process involves vendor selection, cloud platform readiness efforts and workforce reskilling as well as solution integration, testing and validation. But the reality of this engineering effort must be balanced against the need to go to market rapidly to win market share in rapidly growing cloud segments like SaaS and IaaS and connectivity segments like SD-WAN and cloud CPE. The window of opportunity to win substantial market share in these growing segments can close within the next two years because core cloud services markets are set to grow multiplicatively by 2020.
Service providers face competitive threats from outsiders who are already market leaders in cloud services like IaaS, PaaS and SaaS, and which are working to offer cloud-based connectivity as well. As a result, the time to market need has become extremely urgent. Enterprise demand for B2B cloud services is moving at a rapid pace and won’t wait the year or two it may take for homegrown network and service virtualization initiatives to come to market. As a result, a supplier-provided, fully managed telco cloud provides a powerful alternative to launch and win market share rapidly.
What a Full Stack Telco Cloud Supplier Must Deliver
Few technology suppliers to the global service provider community can deliver the combination of SDN-NFV solutions; service and network orchestration; BSS; OSS; digital marketplaces; robust partner ecosystems; managed services; and multi-cloud capabilities necessary to make a large-scale telco cloud solution a reality. Consider these five factors that are “must-haves” for a telco cloud solution provider:
- A supplier must be able to build and provide the full-stack telco cloud solution for the service provider.
- It must also be able to run that telco cloud for the service provider from its own data centers or in a multi-cloud environment that can include private, public and on-premises components.
- The supplier must be able to take full responsibility for implementation and operations. This is necessary to reduce the service provider’s cost, effort and risk while also allowing the service provider to focus on its core business and its ongoing cloud and virtualization initiatives.
- The supplier should also be willing and able to share risk with the service provider, offering a pay as you grow model that delivers the benefits of cloud economics and gives the supplier real skin in the game.
- Finally, the supplier needs to bring business- and market-ready services to the table so that the service provider can pick and choose from myriad service components to create and launch differentiated offerings rapidly. This reduces the service provider’s risk because the supplier has done the hard integration and commercialization work up front. That hard work is what enables a service provider to bring combinations of services like SD-WAN, network security and productivity applications to market in weeks rather than years.
Results Service Providers Should Expect to Achieve
The results service providers should expect to achieve with a fully managed telco cloud solution include 6 times faster time to market for new services; a tenfold reduction in entry cost; 90 percent effort savings; and new revenue generated from high value B2B services that utilize new business, consumption and operating models.
Netcracker Leads the Way
Delivering a complete solution that hits all these marks is not simple, but the solution needs to be simple for service providers to access, use and launch. It requires a world-class strategic technology partner that brings the end to end solution with it. Netcracker has led the charge into this massive enterprise opportunity, taking on these substantial challenges to solve real business problems for service providers worldwide and to help them capture massive growth opportunities in the high value B2B cloud services market.