Telcos are struggling with the cloud – time to rethink and refocus on differentiators

Telcos are trying to broaden their business portfolios by adding new capabilities, such as storage, security and on-demand capacity - but in doing so, they are neglecting their core business assets and key differentiators. They should compete on their own terms.

What are their key differentiators and how can these transform cloud offers?

According to recent analysis, telcos are struggling to make an impact in cloud services. This should set the alarm bells ringing and raise an immediate red flag, as many telcos have made bold announcements about the strategic importance of the cloud to their businesses and future growth potential.

The research, from industry analysts Canalys, finds that only one telco has made it into the list of the top 10 global cloud providers. During the last few years, many leading telcos have queued up to promote their claims to build on their network connectivity capabilities and to offer an integrated suite of IT and integration services to business customers.

Yet despite this, most have failed to build momentum. That’s because they are thinking about this the wrong way round. Many of the cloud offers seem to be divorced from the key capabilities for which telcos are already known by their business customers.

Business customers typically buy communications and connectivity services from their telco providers. Telcos are trying to position similar services, such as storage, security and more as their cloud offer. In this respect, they are competing head-on with other providers – but in doing so they are missing out on their key and unique differentiators. Business customers look elsewhere for storage, processing and hosting services.

Telcos have unique, global networks, that are optimised for high-performance, quality of service and real-time service delivery – and the ability to reach all customers with a telephone number or MSISDN. Most cloud providers do not have such assets. Telcos are choosing to compete in the wrong area. By focusing on generic cloud capabilities, they are neglecting their own assets.

So, they need to rethink and refocus. They need to start with their ability to reach all users, backed by the quality and consistency of their networks. To these, they need to add more flexible and innovative communications services – such as advanced call routing, global IN capabilities, mobile PBX, cloud communications, and more – and target customers with something that is not simply a like-for-like offer that can be obtained from an alternative cloud provider.

Telcos should compete on their own terms, not by trying to emulate what others have done, but rather by leveraging what they’ve always been good at – scalable, quality, real-time capabilities. If you’re struggling to make sense of your cloud portfolio and want to know how to pivot back to leverage your unique assets, why not talk to Gintel? We’ve been helping telcos deploy, manage and grow high-performance real-time communications services for decades. Don’t just compete – differentiate and exploit your assets.

Cloud Unified Communications, Mobile PBX, Cloud

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