Whale Cloud lays out path to telco diversification

Ben Zhou, CEO of Whale Cloud International, discusses with Mark Newman, Chief Analyst, TM Forum, how telcos can plot a path to revenues beyond core connectivity services.

Q1: In order to thrive in a dynamic business environment, it's important to embrace change and continually adapt strategy to meet the needs of the ever-changing market. What’s the digital strategy of Whale Cloud?

In recent years, the world has been undergoing rapid and profound transformations. The key to effectively dealing with these changes lies in developing a greater tolerance for uncertainty and embracing the need to adapt. As technology continues to advance at an unprecedented pace and global challenges become increasingly complex, it is crucial to stay abreast of these shifts and remain open to new ideas and perspectives. It is exactly what Whale Cloud always does– we have transformed from ZTEsoft to be better equipped to help CSPs grow the core connectivity and explore opportunities beyond.

Whale Cloud has adopted the strategy of “STRATO” to provide customers with a comprehensive perspective on digital transformation, enabling them to gain a top-view of digital transformation and propel their business into the stratosphere in a stable and sustainable manner. Whale Cloud's continuous strategic evolution, shaped by the process of exploration, is now known as Digital Transformation 2.0. In contrast to the prevalent focus on IT architecture upgrades in Digital Transformation 1.0, Digital Transformation 2.0 emphasizes three critical aspects: improving core connectivity of CSPs, innovative businesses to make a difference, and accountable transformation services to succeed.

Despite the widespread adoption in the market, connectivity remains the primary focus for CSPs. Enhancing core connectivity entails optimizing the IT infrastructure and improving business performance for our customers. To this end, we have created an open platform and a diverse range of plugins, enabling CSPs of all sizes to adapt swiftly to market dynamics, reduce time to market, minimize customer attrition, and enhance customer engagement.

In addition to supporting CSPs in enhancing their connectivity services, we understand the challenges faced by CSPs in selecting the right approach to diversify their businesses. Rather than employing a generic approach, we offer business plan consulting services to align goals and provide tailored digital solutions that best suit their specific needs.

Accountable digital transformation services help CSPs navigate and execute their digital transformation initiatives in a responsible and effective manner. We are actively exploring digital transformation services to ensure accountability throughout the transformation process, from strategy development to implementation and beyond.

Q2: What is your competitive edge to keep creating value for customers?

With a combination of technological prowess, industry know-how, and a commitment to customer success, Whale Cloud has become the trusted partner for CSPs worldwide. We hold a distinct advantage that mastered both the technologies & best practices in the telecoms industry and the understanding & experience of tech players in China, which provides a comprehensive and tailored approach to CSPs’ digital transformation, incorporating the unique insights gained from the Chinese market. The technologies and business models of China’s tech players also enable us to put more invigoration and innovation in the telecoms industry. With a track record of successfully supporting CSPs of all sizes in diverse markets across the globe, Whale Cloud brings invaluable industry know-how and best practices to every project. This extensive experience ensures that CSPs can embark on their digital journeys with confidence.

Whale Cloud is also continuously evolving technologies and embracing innovation to adapt and stay ahead of the competition. We know that CSPs often face the challenge of heavy IT legacies, which requires decision-makers to consider various factors when planning their ideal architecture, such as cost, efficiency, impact, outcomes, and time. To tackle these challenges, we developed an open platform that supports plug-and-play functionality, enabling our customers to reap the benefits of a “best of platform” approach and empowering them with the freedom to choose and integrate diversified services effortlessly.

We have been steadily working on the development of products and solutions that come with Out-of-the-Box (OOTB) features. Furthermore, we have also developed an OOTB business model that enables CSPs to expedite their time-to-market, and minimize the complexities associated with building and managing these capabilities internally.

Q3: As you mentioned, Whale Cloud is strengthening capabilities to empower CSPs to move beyond connectivity. What is Whale Cloud’s differentiation to support CSPs in this journey?

Moving beyond connectivity is not a new concept as it has already become a key strategy for CSPs. They are transitioning from being focused on digital efficiency to digital enablement, transforming from traditional telecom service providers to digital service providers. CSPs may or may not fully realize that entering adjacent markets is a natural progression for them. They already have control over connectivity and possess a large and loyal customer base, which provides the potential for traffic conversion. What CSPs require is a catalyst or an opportunity to enter new markets, along with the technological expertise to successfully operate in these areas. This is where our advantage as a partner lies.

Working closely with Alibaba Cloud and Alipay+, Whale Cloud has expertise in emerging areas like eCommerce, fintech, and cloud services, providing valuable insights and guidance to help CSPs understand these new markets and navigate the challenges associated with them. For example, Whale Cloud has implemented Local Public Cloud services for two Saudi Arabian enterprise customers, ensuring data sovereignty and driving revenue growth. In South Africa, we supported a local operator to establish a leading mobile payment service. In Kazakhstan, we assisted a local bank in building a digital financial platform that offers a diverse range of digital financial services. Additionally, in Indonesia, we developed an eCommerce platform for an operator with over 20 million subscribers.

Q4: From your perspective, what does the future hold for the telecoms industry?

The future of the telecoms industry is likely to be characterized by rapid technological advancements and an increasing focus on AI, autonomous networks, open digital architectures and capability exposure for a sustainable ecosystem. CSPs are increasingly recognizing the value of exposing their capabilities through open APIs, and leading players have already taken part in initiatives to accelerate the adoption of open APIs, for example, the open APIs program of TM Forum and the GSMA-led Open Gateway, to open up CSPs’ capabilities in an interoperable, intuitive and programmable way.

Apart from network resources, we firmly believe that operators possess a plethora of resources that are often underestimated in terms of their value. These resources, including channels, customer evaluation systems, and operational capabilities, hold immense value and are highly appealing to 2B customers. By opening up their platforms and services to third-party enterprises, CSPs can monetize their key capabilities as a service and even leverage the creativity and expertise of external partners to develop new applications, services, and technologies.