The Digital Telco Opportunity: Radical Industry change’s forcing CSP’s to drive into a new orbit


Sreekumar Vadakkepat

October 23, 2015

 The Communications Services Providers (CSP) market is being disrupted from all sides. Content providers and OTT players are establishing direct consumer Telco relationships using the CSP backbone. Eg. Google launched Project Fi a disruptive CSP model while Apple has announced Apple SIM. The lines of who owns the customer relationship versus the traditional last mile customer relationship models are getting refined , all the while millennial’ s are expecting a very different customer experience model. Facebook acquired mobile app firm WhatsApp , redefining the existing CSP business models with over 900 M users.

 New technology disruptions like Software Defined Networking (SDN), Network Function Virtualization (NFV) etc. are compelling organizations to significantly rethink their CSP backbone models that are driving the next generation of Business Model’s. The CSP backbone is very capex intensive and market opportunities like IOT and Cloud represent that spectrum for CSPs to reinvent their business models with an agile business model transformation. In fact, according to analyst firm IDC, the Worldwide Cloud Services spending is estimated to grow to US$107.2 billion by 2017[1]. Meanwhile, IDC estimates the Internet of Things Market to reach $1.7 Trillion by 2020[2].

 It is crucial for CSPs to radically alter their business models and drive a roadmap of business transformation using Digital disruptions in a simple and agile manner. To do that, it’s especially important for CSPs to think in terms of firm-wide digital transformation that encompasses customer experience, organizational change and technology, closely coupled with innovation. Indeed, we’re seeing a trend towards investment in innovation centers to drive digital transformation, which is an encouraging sign. Speed to value and innovation are the key dimensions needed to support this journey and at the heart of technology-driven innovation are platforms that allow for flexibility, customization, speed, scale and low risk.

 Gartner[3] in its report Hype Cycle for Communications Service Provider Digital Services Enablement quotes “The transition to become a digital services provider will be difficult for CSPs. The behaviors and skills that CSPs have mastered for legacy IT are potential hindrances. Adopting and instilling new methodologies and approaches will be crucial in enabling the CSP to respond rapidly to capture market opportunities and deal with the high levels of uncertainty inherent in emerging digital ecosystems.

 In this context, Capgemini is championing a game-changing offering for realizing the above mission. It is launching the FAST Digital Telco offerings addressing the simplification and transformation of the CSP market place at Oracle Open World (OOW) 2015.  The digital ecosystem based business innovation model was announced, press release, as a lead upto Capgemini@OOW2015 at San Francisco.

 As an example, we are co-innovating with Oracle to develop a cloud based CSP grade solution which in our belief will harness disruptive technology trends such as cloud to reinvent core business processes and to innovate. Oracle executives (Oracle Executive Chairman Larry Ellison @ Forbes)have announced their intentions to drive the next generation of cloud based business models to support this initiative. The real promise of this Capgemini DIGITAL solution is a commitment based model tied to Client’s business results and outcomes.

 The market making offer is being launched with a speaking session at OOW 2015. Oct 28th at 2 PM PST: Conference Session – Speakers: Jacques Assaraf CVP Head of Telecom, Fernando Alvarez CVP and CDO and John Jorgensen, Sr. solution executive: Simplifying telco operating models using Oracle communications RODOD on a hybrid cloud. Capgemini is also launching the Applied Innovation Exchange (AIE) at OOW 2015 to drive the innovation dimension in this digital journey. Oct 26th at 2 45 PM PST: Executive Solution Session: Speaker Lanny Cohen, Group CTO: To Innovate or not to innovate—Applied Innovation sets the benchmark for success

 Visit the Capgemini booth to learn more of this solution and innovation aspects. Capgemini@OOW2015.

[1] IDC Report: Worldwide Quarterly Cloud IT Infrastructure Tracker

[2] IDC Report: IDC’s Worldwide Internet of Things Taxonomy, 2015, Worldwide Internet of Things Forecast, 2015–2020, and the Worldwide IoT Spending Guide by Vertical

[3] Gartner Report: Hype Cycle for Communications Service Provider Digital Services Enablement, 2015 Published: 14 July 2015

This article was written by Sreekumar Vadakkepat from CapGemini: Capping IT Off and was legally licensed through the NewsCred publisher network.

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