Murray Steyn
Murray Steyn Executive Head: Wholesale

Telecommunication companies do not have the luxury of being able to hide from change. As technology advances, they must be right on the cutting edge, passionately embracing innovation.

Not every new idea is worth investing in, of course, but some innovative technologies and concepts in IT services have now matured to the point where telecom companies cannot afford to ignore them any longer.

The cloud

Cloud services have revolutionised the way many businesses operate, and data centres have made it possible. It’s predicted that cloud data centre traffic will represent 95% of all data centre traffic by 2021, from 88% in 2016, according to Cisco’s Global Cloud Index.

It’s easy to understand why, as cloud technology has allowed for a level of functionality that businesses in the past would only have been able to achieve at extraordinary expense. The cloud has proved to be a real boon for SMEs, providing remarkable cost efficiency, agility and interoperability. Cloud services can also be easily upscaled as the business grows.

Telcos have a vital role to play in facilitating such services since the cloud requires on-demand network access. For cloud services to be feasible in a business context, access must be dependable and security must be assured.

Anything as a Service (XaaS)

Cloud-based on-demand services have reached the point where anything can be offered “as a service”. XaaS is a broad term that encompasses three layers of cloud computing: infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS), but it doesn’t end there. There are now a vast range of products and services on offer as a service over a network rather than as an on-site installation. These include communications as a service (CaaS), network as a service (NaaS), disaster recovery as a service (DRaaS), and even malware as a service (MaaS).

Such services greatly reduce costs for businesses while simplifying IT deployments. Every additional cloud service allows a business to dispense with elements of its IT infrastructure – this means fewer servers, hard drives and network switches, and less demand on IT staff. Selling XaaS solutions works well for most telcos, but they do require partners that are able to build them.

Wireless connectivity (4G)

Wireless technology, 4G LTE in particular, has a fundamental role to play in the connectivity mix. Fixed wireless technology is now capable enough to complement fibre with agile deployability. As such, it is increasingly being used as a last mile solution, and to bring high-speed broadband to areas that could not benefit from it before, quickly and at minimal cost. This trend that is sure to continue, especially as mobility becomes ever-more important for workforces.

These trends in IT services all necessitate high bandwidth availability, low latency, accurate synchronisation and rock-solid security. Telecommunication companies must get to grips with these changes in the technological landscape to meet the challenges and seize upon the opportunities they create.

Partnering with an established provider to offer superior wholesale solutions is the surest path to success.

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