This week, AsiaInfo announced a new strategic partnership with Amazon Web Services (AWS) to deliver its Veris BSS suite in the public cloud. AWS's strong reputation as a cost-efficient and secure public cloud provider puts AsiaInfo in a good position to win business from telcos as they search for more cost-effective delivery models for IT systems.
AsiaInfo is well positioned to capitalize on the public cloud market
Ahead of this year's Mobile World Congress in Barcelona, AsiaInfo announced a new strategic partnership with AWS to deliver Veris Cloud Core, a public cloud-enabled version of its Veris BSS suite. This announcement shows that AsiaInfo is betting big on the future success of public cloud by partnering with a leading public cloud provider such as AWS.
BSS cloud is expected to generate more than $9bn in revenue by 2020, according to Ovum's OSS/BSS Revenue Forecast. Telcos are keen to lower operational costs, increase business agility, and improve the scalability of IT systems, and thus are investing heavily in cloud delivery models. Ovum's most recent ICT Enterprise Insights survey finds that over the next 18 months, cloud deployments (private, hybrid, and public) will be the preferred delivery models over the use of traditional managed services and on-premise deployments. Sixty-eight percent of telcos plan to put at least some element of the BSS stack into the cloud – between the private, hybrid, and public domains – but only 22% of telcos surveyed stated that they plan to use the public cloud to host at least one component of the BSS stack over the next year.
In the announcement, AsiaInfo stated that through its partnership with AWS, telco BSS transformation completion times would be drastically reduced from an average of 24 months to roughly 7 months. This is because the Veris Cloud Core suite will be pre-integrated and highly configurable, meaning that less time will be spent customizing the solution for each telco. The timing of the partnership is excellent for AsiaInfo; the number of BSS and digital transformation projects has been on the rise for years, and telcos are increasingly seeking out more cost-efficient delivery models for these new systems.
To date, telco adoption of cloud delivery models have been stalled somewhat by security and privacy concerns. As a result, those BSS vendors with trusted cloud hosting capabilities and continued focus on security and privacy will be well positioned to win telcos business. This is the first partnership of its kind between AWS and a telecoms vendor. AWS's reputation as a secure public cloud provider offers an advantage to AsiaInfo over its competitors, particularly because unlike competitors such as Salesforce.com, which only offers CRM, AsiaInfo will offer the entire BSS stack in the public cloud. For years, AWS has provided public cloud support while also meeting regulatory guidelines for a number of large businesses across several industries and countries. In the long run, this expertise will benefit AsiaInfo as telco adoption of public cloud increases. However, in the immediate scope of things, AsiaInfo will have the challenge of soothing telcos' fears about placing customer-sensitive systems, such as billing and charging systems, into the public cloud domain.
2016 Trends to Watch: Telecoms Operations and IT, IT0012-000146 (November 2015)
Chantel Cary, Analyst, Telecoms Operations and IT