Converting software to SaaS has always centered around economies of scale, while this is a valid argument, innovation is a another big reason for doing this transition. BroadSoft worked with Frost & Sullivan (F&S) to survey the Cloud Service provider (CSP) market. F&S interviewed 20 CSPs to understand their pain points, what is working and what is not working and understand what changes they need to make to be successful in this market.
The survey provided great insights into what was going on and identified the areas where the CSPs felt they could improve. CSPs felt that innovation is critical in this market to stay ahead of the curve. They felt integrating the OSS/BSS systems and integrating multi-vendor technologies were the biggest barriers for cloud based communications. With 45% of the CSPs surveyed stating they are planning to deploy a turnkey solution hosted and operated by a third party in the next 12 months to aid them with their own innovation, this emphasizes the importance and high priority for organizations.
Are you a service provider facing the following challenges?
- Other providers offer a superior, scalable infrastructure
- Competitors are leveraging the operational, marketing, technology and cost advantages of the cloud
- Lagging implementation of software releases and updates put you at a disadvantage for features and/or security risks
- Better customer experience is offered by competitors due to enhanced digital marketing capabilities
- Your innovation cycle time-to-market is inconsistent and doesn’t meet industry best practices, where leaders are as much as 2x faster than the average
- Churn rate is high relative to growth rate; thus missing customer lifetime value (LTV) objectives
- What was once distinct competency is now slight value or a commodity
- Your buy-build-or-partner decision lanes are now blurred
- Deficient cycles for continuous assessment of IP and performance gaps to redefine and sustain distinct competencies
If you are facing these challenges then moving from a traditional software model to turnkey solution like Platform-as-a-Service (PaaS) model might be your answer.
Here are a few things to consider when looking for a PaaS vendor:
- Does the vendor own, manage and evolve the scalable cloud infrastructure?
- Are the security features designed and maintained with industry recognized best practices?
- Does the vendor provide geo-redundancy, high availability and reliable services
- Can the vendor maintain integration with your OSS/BSS?
- Are you able to control and customize your service offering while leveraging the latest software release and features?
- Are you able to migrate your software licenses to a cloud-based subscription model?
What are your next steps?
- Choose a PaaS provider who can own, manage and evolve the cloud infrastructure and service delivery
- Eliminate the burden of non-strategic OPEX and CAPEX
- Minimize your marginal cost for new features
- Focus on selling your customer experience innovation