SaaS: The new revolution in telecom BSS

Software as a service (SaaS) will definitely transform the way communications services providers (CSPs) are using business support system (BSS) software. This has already happened in other industries and areas of the telecom industry. And now, it’s coming to BSS. Vendors and CSPs will need to “let go” of customizations, and, in return, they will gain faster time to market, rapid deployment of systems, and new capabilities. Done right, SaaS will also eliminate the need for risky and cumbersome upgrades, deliver up to 80% savings on total cost of ownership (TCO), and offer a worry-free, “as-a-service” model. SaaS is more than just another form of managed services. It is the operational model and lifecycle management of a specific software application and its resulting business model, and is available only on the public cloud. Telecoms should consider SaaS as an alternative and revolutionary model which enables CSPs to cut costs and gain the freedom to focus on business development and customer experience. But where and how does a CSP start on its SaaS journey? I recommend a three-step model to “start, discover and accelerate” your SaaS journey.

Start! Using SaaS for BSS

With SaaS, CSPs don’t install software on-premise or on a private cloud. They also don’t customize software or manage lifecycle versions — including cumbersome, headache-creating upgrades. Instead, there is an automatic, seamless, and effortless process whereby their applications are constantly updated to the latest version with the continuous rollout of new features and capabilities. Also, you won't invest time in setting up and managing data centers, infrastructure, or hardware. And you won’t need to manage any related procurement processes. The success of SaaS-based services in other industries, such as retail, commerce, engineering, and finance, is influencing telecoms — and CSPs welcome the ability to increase their focus on their businesses while leveraging vendor expertise to manage their applications and infrastructure. SaaS also saves on customization costs. Traditionally, telecoms would customize their BSS applications and tailor them, thinking this was the only way to meet market demands. However, in time, these constant customizations and change requests (CRs) have created a very complex system to operate and upgrade. Each time an upgrade is considered, the estimation of moving all the customizations to the new product “kills” the project. Instead, when you use SaaS, you get extended capabilities through configuration and avoid (or at least minimize) customizations. Reacting to the market is done through use of the product’s out-of-the-box capabilities and functionality and enjoying the continuous stream of new functionalities introduced into the generic product each time the application is updated. With SaaS, telecoms eliminate the technical debt that increases the complexity and expense of moving to next-generation versions.

“Analysys Mason estimates that SaaS-based systems will become the preferred delivery model for all CSPs by 2021.” CSPs' digital experience needs will drive them to adopt SaaS-based customer care systems, Analysys Mason, Feb 2018 »

Discover: Why SaaS for BSS?

Telecoms face challenges that include changing customer behavior, increased competition from digital-native service providers, and urgency to invest in network infrastructure. Also, there is unprecedented demand for greater agility and faster time to market to launch new products, services, commercial bundles, and models — all while reducing operational costs and initial investments. With these factors, it’s vital to continually enhance digital customer experience and create new monetization opportunities to maintain a competitive advantage. Migrating to the public cloud with a SaaS model allows you to avoid risky and expensive transformations. It supports you on your digital journey without the burden of maintaining and operating your BSS. With rich and configurable functionalities, SaaS-based BSS empowers you to meet ever-changing market demands.

“BSS is broken. It’s a business model that can’t carry on. Operators simply cannot afford expensive change requests (customization), and even vendors who charge a fortune for those requests realize the situation has to change.” Future BSS: Say goodbye to software customization, TM Forum, Jan 2020

Accelerate: Maximum value at the lowest cost

The SaaS business model and cloud economy provide new business models and create an approach that offers new benefits, value, and flexibility. A SaaS “pay-as-­you-­go” subscription fee does not require major CAPEX investment or large upfront investment — sometimes, it completely eliminates them. This reduces risk and better aligns spending with revenue. Fully managed operations, including infrastructure management, software management, and business operations on the public cloud, also reduce ongoing internal operational costs. Telecoms are experiencing a radical change to business and revenue models. Ongoing 5G deployments and the digital economy lead to alternative models of software infrastructure to create agile, flexible, and cost-effective foundations for the future.

“SaaS-based monetisation platforms have become an important consideration thanks to its many benefits such as lower costs, faster time to market and simplified operations framework. The widespread adoption of SaaS-based solutions in other industry verticals supports this being a viable model even for mission-critical applications.” SaaS delivery models will transform CSPs’ monetisation platforms, Analysys Mason, Aug 2020