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Aiming for the stars? It may be better to end up in the everything as a service cloud

Everything as a service, also known as “X as a Service” (Xaas) allows telecom service providers to follow market demand on the road to digital transformation with cloud computing service models.

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Aiming for the stars? It may be better to end up in the cloud

Today, many service providers are struggling with their identity, and struggling with their current portfolio. At the same time, their enterprise customers are also struggling to define what digital transformation means, and how to achieve it.

Service providers have a real opportunity to take a leadership role in the new digital economy, but to do so, they need to first transform their network and their offerings. XaaS gives service providers a shortcut to digital transformation, both for themselves and for their customers.

Rapid transition can happen with XaaS, bypassing much of the upfront cost associated with R&D, and the ongoing costs of security and optimization. Additionally, the predictability and flexibility of cloud-based digital services allow service providers to build solid business plans focused on their targeted market segments.

Catch up to today’s demands with XaaS

So what’s the rush for digital transformation? Will IoT and video really make up for the cost of transforming a cellular network? We at Ericsson would tend to believe that those are markets worth pursuing, but even if you don’t buy that argument for digitalization, the operational benefits of transformation are hard to deny.

Forget tomorrow, digitalization is needed just to meet today’s network demands. Operational efficiency, agile ways of working, and expanded digital services for customers – to achieve those lofty goals on their own, a service provider must dedicate a lot of time and resources, and take on a lot of risk.

Choosing a XaaS mitigates the risk and lowers initial investment of catching up with digital transformation. Going forward, predictable spending and unrestricted scaling capability makes it easy to grow at any pace, paying only for what you use.

What does XaaS look like?

After years of dealing with physical networks and their components, it may be hard to imagine what using an XaaS platform looks like in practice. An important part of that picture is the relationship between th vendor and the service provider.

At Ericsson, we are increasing our efforts to provide cloud-based XaaS platforms and services. As we do so, we are building on our long experience working with networks, and listening to the needs of our longtime telco partners.

Today, Network Management as a Service (NMaas) and our IoT Accelerator are well established parts of our XaaS platform. In 2018, we are increasing our efforts with new offerings such as Revenue Management and connectivity services. Watch this space, there’s more to come.

Enabling successful ecosystems via XaaS

Ecosystem is a word we hear a lot, but with good reason. Success in the digital economy will rely on collaborative efforts between a wide range of players, including service providers.

One key role of the transformed network is to support new business flows in the digital ecosystem. By providing enterprise customers with the tools they need for their digital transformation, service providers take a central role in the ecosystem, with access to the data that will support even more new business flows.

XaaS gives service providers the opportunity to start leveraging the possibilities of the cloud, adapting their network to follow market demand rather than technology maturity. Making that happen requires adding a trusted XaaS vendor to the ecosystem.

Going digital requires top down transformation

So, now you’re convinced that you can achieve business transformation through “X as a Service, right? But what are the first steps to getting there?

For an innovative idea to spark organizational change, that idea needs to be valued by leadership. Top management can’t just wait for someone to walk into the C-Suite say ‘Hey, I have a great idea,’ and expect transformation to occur magically.

Instead, management should appoint a team dedicated to exploring digitalization and say, ‘Hey, go find great ideas!’ This way, a service provider can align business goals with market demands and technological opportunities. With that vision (and a trusted partner) service providers can aim for the stars with some help from the cloud.

Want to learn more about what smart service providers already know about XaaS? 

Read more about how to achieve business transformation through XaaS.

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At the Ericsson Blog, we provide insight to make complex ideas on technology, innovation and business simple. In a world that is increasingly complex, we are on a quest for easy.