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TM Forum data suggests that more than 70% of CSPs plan to increase their spend on BSS as-a-service solutions through 2025. Aria Systems discuss why CSPs are making this strategic move, the cost and how to spot imitations.
Akil Chomoko, Aria Systems Inc.
Unlocking agility in CSP operations: embracing true SaaS BSS
In a digital age where agility equates to survival, communications service providers (CSPs) are increasingly turning to software-as-a-service (SaaS) solutions for their business support systems (BSS). In fact, TM Forum data suggests that more than 70% of CSPs plan to increase their spending on SaaS-based BSS solutions through 2025.
The promise of SaaS is clear: streamlined operations, reduced costs, and enhanced flexibility. But there’s a challenge lurking – the risk of adopting solutions masquerading as SaaS but which are, in reality, repackaged legacy systems.
Why CSPs are betting big on SaaS BSS
A shift towards SaaS-based BSS is not just a trend; it’s a strategic move. One group-level senior architect whose multinational organization is shifting to SaaS-based BSS offers these five key reasons why SaaS just makes sense for CSPs:
Spotting the imitations: How to avoid ‘fake’ SaaS
As CSPs have begun to demand SaaS BSS options, the market has been flooded with BSS products that wear the SaaS label but lack some, most, or all of the characteristics that make true SaaS so valuable. Worse, these imposters come with additional hidden costs and limitations – maintenance fees, inflexibility, and a lack of scalability. To avoid these pitfalls, look for these true SaaS indicators:
Cost: The deciding factor
True SaaS BSS solutions offer more than just a feature set; they provide tangible financial benefits. At Aria, we’ve found that an authentic SaaS BSS should not exceed 25-75 basis points per revenue dollar managed. This is in stark contrast to the 200-400 basis points per revenue dollar of traditional BSS.
Genuine SaaS demands minimal operational staffing, harnessing standardized, API-based integrations and incorporates auto-scaling and support into its pricing structure. Conversely, a legacy system masquerading as SaaS may lead to significant extra costs for customization, scaling, and support.
The true SaaS advantage
The technical and financial benefits are evident: authentic SaaS BSS is a transformative force for CSPs. That’s why discerning the real from the counterfeit is critical, as well as capitalizing on the full range of SaaS benefits – not only in terms of cost but also in scalability and capability. As CSPs embark on their BSS transformation, staying alert to ‘pseudo’ SaaS offerings is of utmost importance.
