Benefits of Cloud Computing in the Telecom Industry

Cloud Computing is gaining immense popularity for the last half a decade. It has made its impact on IT, Technology, and Business industries. This has led to a surge in global spend in the Cloud Computing domain. We will discuss the overview of Cloud Computing and its benefits in the telecom industry.

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Overview of Cloud Computing

Let’s see the formal definition of Cloud Computing:

“Cloud Computing enables on-demand services like compute, storage, networking, software, database, etc., which can be accessed through the internet, and the user is not required to manage these resources.”

The main advantage of cloud computing is that you only pay for the cloud services you use, reducing your operating costs. Subsequently, you can run your infrastructure more efficiently.

Some of the essential Cloud services are:

• Pay as you go, payment model
• It is accessible from most parts of the world
• It can be accessed through the internet
• A vendor takes care of managing and monitoring these services
• The resources provided can scale up and down depending upon the requirement

Learn the basics of Cloud Computing with this Free Cloud Foundations Course.

Benefits of Cloud Computing in the Telecom Industry

Cloud Computing has made an enormous impact on the telecom industries. It has reduced operational and administrative costs for the telecom sectors and maintained a unified communication and collaboration with a massive Content Delivery Network. Cloud service providers allow telecom sectors to focus on essential business services rather than IT, server updates, or maintenance issues.

Let’s go through some vital benefits of cloud computing from the perspectives of telecommunications, service providers, and users.

Benefits of Cloud Computing from a Telecommunications perspective

Cloud Computing has significantly increased the reach of telecommunications across the world using advanced technologies. Some of its benefits include:

• Cloud Delivery Model: The platform delivers IT and communication services over any network (fixed, mobile, worldwide coverage) and can be used by any end-user connected devices, such as smartphones, PCs, televisions, etc.
• Communication Services: It delivers a vast range of communication services, such as audio calls and conferences, video calls and conferences, messaging, broadcasting, etc.
• Network Services: It provides high-grade network services, such as VPN, L4-L7 connections, etc., to ensure secure and high-performance services with end-to-end quality assurance for end users. 

Benefits of Cloud Computing from a Service Provider’s perspective

Cloud Computing can benefit itself by providing cloud services to telecom sectors. Some of its benefits include:

• Reduction in costs: Using cloud computing, service providers can provide software at lower rates with the help of virtualization and provisioning software, allocating efficient computing resources, thus reducing hardware costs as well.
• Highly scalable and flexible infrastructure: A vast scalable engine delivers building highly scalable and flexible infrastructure for users and partners, meeting the peak loads and seasonal variations demands.
• Efficient and flexible resource allocation and management: Using virtualization technology in cloud computing, cloud service providers can use flexible and efficient resources, such as IT, server, storage, network, etc.

Benefits of Cloud Computing from a User’s (Telecom) perspective

Cloud Computing has significantly increased several telecom industries’ business revenues by providing efficient and effective operations, leading to advanced technologies. Some of its benefits include:

• Reduction in costs: As previously mentioned, cloud computing helps in the reduction of operating costs of software and hardware resources, thus increasing the infrastructure’s efficiency and scalability.
• Data Centers: Cloud computing improves data centres’ efficiency and server utilisation through the collaboration between cloud service providers and telecom sectors.
• Scalable engine: Cloud service providers deliver a massively scalable engine to build scalable and flexible services to improve the business performance and revenue of telecom sectors.
• Pay-per-use payment model: Cloud service providers offer pay-as-you-go payment models where telecom sectors only need to pay for the services they utilised or subscription-based pricing.
• Low migration costs: If the telecom sectors (customers) are not satisfied with the cloud service, it is quite easy to migrate to a new solution by simple signing a new contract, transferring or migrating data, and retraining the customers at minimal costs.
• Service-mobility: Cloud services can be used by anyone who has internet access to devices that are not only desktops but also by mobile phones. It results in growing your business across the globe.
• Securing important data: Cloud computing offers data backup, where it allows telecom sectors to backup, store, and secure their critical data in multiple locations to carry on with the business immediately, although there is a natural disaster.
• Eco-friendly technology: Telecommunications and cloud computing together help to develop eco-friendly technologies. 

Now, let’s see a real-time example of a telecom company called SingTel that use cloud services.

SingTel: Singapore-based Telecommunications Company

The company launched SingTel Video-Analytics-as-a-Service (VAaaS), which is a cloud-based video analytics service developed by KAI Square Pte Ltd, a Singapore-based startup. The cloud service utilises a state-of-the-art cloud-based analytics platform for converting video data into customer intelligence to grow in the retail industry. The service takes untapped video images to utilise powerful analytics for translating them into commercially useful data. The information includes:

• It analyses the customer profiles and improvises the customer experience correspondingly
• It improves sales by putting up advertisements where customers mostly access or encounter
• It Improves staffing effectiveness
• It gains quick insights into performance across multiple store locations, which subsequently enables faster and more efficient business decisions

Using this information, retailers can improve their effectiveness and efficiency of their sales and marketing efforts, eventually enhancing their traffic flow.

To conclude, cloud computing has significantly impacted the telecom industries and various sectors like government and public enterprises, etc. The majority of organisations use cloud services to grow their business operations and meet customers’ demands. Many services-based organisations, like the cloud telecommunication sectors, are witnessing massive growth in their markets.