So you’re a successful telecom provider. Maybe you’re global, but most likely, you dominate one particular region. And now you want to become a cloud services provider. How do you know you have the right tools?

Telecoms and big data, IoT and Industry 4.0

This is a perfectly sensible ambition and a perfectly sensible question. After all, you already possess a great deal of communication “real estate”: datacenters, co-locations, bandwidth, managed services. It seems only natural that you’d want to provide cloud services to your customers.

It’s time for your telecom enterprise to catch a piece of the buzz: big data, the Internet of Things (IoT), and Industry 4.0.

The telecom’s cloud services dilemma

There’s just one problem. Providing cloud services isn’t your core business.

Consider one of the most ubiquitous examples of SaaS provided by a data giant: gmail. You could go on vacation anywhere in the world, find an internet connection, and gmail will still work seamlessly.

That's the kind of cloud-based service that you want to provide your customers. They shouldn't have to worry about their physical location relative to your resources. All they should have to do is sign a service level agreement (SLA) with you, guaranteeing that you'll be able to provide them with the services they need, when they need them. Services like enterprise resource planning (ERP) and human resource management (HRM).

Some options for getting competitive in the cloud space:

  • Work alone, attempting to build out your datacenter, so that it has real cloud capabilities. But that’s a long, uphill journey. Most telecoms who attempt it get trapped in a cycle of investment on top of investment, and they eventually fail. This happens primarily for two reasons: They need to focus their energies on their core business, and their datacenters are not set up to scale gracefully.
  • Work with a data giant like Google or Amazon in a hybrid cloud situation. Yes, the data giant will, to a certain extent, take care of the hyperscale for you. But they won’t help you figure out how to use your own resources more efficiently. They won’t help you figure out when to offload data to the public cloud, and when not to. They won’t help you make decisions about the security of your data. Basically, you need that “secret sauce” that will help you become a good cloud provider to your own customers. Which means being able to offer “pay as you go” and scale on demand.

What will be your core value proposition?

Every cloud-based business (and every business in general) is on a continuous journey to discover and refine that combination of services that are, or will become, the core value proposition of the enterprise. Only your executive team understands your offerings well enough to write the recipe for your secret sauce. But to do so, it helps to have the tools that will show you how to do the most you possibly can with the resources that you currently have.

Which brings us back to our question: How do you know if you have the right tools?

Well, consider this: Have you ever used a piece of infrastructure management software that tells you to buy *less* equipment next year? Find a tool like that, and you've found a tool that works for the future of your business, and not the other way around.

Watch me explain the challenges telecoms face in becoming cloud providers.


My road to the cloud

Before I became Product Manager of Ericsson’s Datacenter Automation Platform (DAP), I owned and operated the first IaaS based in Taiwan, serving East Asia. During that time, I also partnered with Google to offer unlimited Cloud Platform resources through an integrated user interface. This taught me the ins and outs, and gave me experience developing a secret sauce to build competitive cloud services that satisfied my customer's needs. Now, my mission is to help other businesses, especially telecoms, grow into the cloud. That’s why I'm at Ericsson, which has been leading the telecom industry for 140 years.

Explore Future Digital Infrastructure

We're also looking into the future of cloud infrastructure.  So please check out our new paper on what we call Future Digital Infrastructure.  Are you ready to succeed in a zero distance world?ericsson_cloud_hyperscale_future_digital.png

  Download the paper

Background photo by Deirdre Straughan

Cloud Infrastructure

Jesse Chao

Jesse has 15 years of IT experience. Before joining Ericsson, Jesse founded and ran a public cloud IaaS for his previous company, MiTAC, which has served the Greater China market since 2011. During the same period, he also served as CIO, running both the internal IT and providing external services. Previously he spent seven years on large transportation projects, such as high speed rail control systems, highway electric toll collection backend systems, and metro central systems, as a system architect and project manager. Jesse holds a MBA in Information System and a BS degree in Statistics.

Jesse Chao