Going digital: the communications service provider journey to cloud-native OSS
After years of costly 5G build-outs, CSPs are under intense pressure to quickly monetize their network investments. But legacy OSS shortcomings—monolithic software, operational silos and an over-reliance on manual intervention—are constraining revenue growth.
CSPs have already embraced cloud-native business support systems (BSS). They are now looking to modern, cloud-native OSS to increase profitability and accelerate their digital transformation journeys. As a result, the global cloud-native development market, valued at 547 billion in 2022, is projected to grow 23.12% annually to nearly 2.35 trillion by 2029 [1].
How CSPs can boost enterprise revenue with cloud-native OSS
Enterprise customers crave cloud-like network services that they can flexibly activate on-demand and closely align with actual business needs. Now, CSPs can meet these needs with a modern cloud-native OSS that uses open standardized APIs and automation to streamline service fulfillment end-to-end across different vendors and network domains—including configuring and activating resources hosted in the cloud, which is critical to 5G.
In addition to enabling high-value on-demand services, these abilities speed time-to-revenue and reduce service delivery OPEX, helping CSPs increase profitability and strengthen their roles as full-fledged digital service providers [2].
It’s all about innovation
Cloud-native OSS helps CSPs create innovative services to solve customer challenges and gain a competitive edge. Leveraging the power of a modular container- and microservices-based architecture, CSPs can even reuse tested components to develop new services more efficiently.
With code reuse, CSPs can quickly construct innovative offerings using pre-built, pre-tested components in a building block approach, with minimal time and risk. By choosing cloud-native solutions that permit low-code/no-code development, CSPs can further improve productivity, reduce costs by using in-house teams and system integrators (SIs) to customize services, which reduces the burden on already strained engineering teams.
CI/CD and ISSU amplify the benefits
The capacity to deploy cloud-native OSS easily in public and private clouds opens the door to Continuous Integration and Delivery (CI/CD) models and In-Service Software Upgrades (ISSU). CI/CD streamlines the revenue path by improving code quality and quickly getting new features into the customer’s hands. Extending this modern release process to the OSS enhances development speed and quality. It encourages communication and collaboration between engineering teams and customers, resolving issues quickly.
ISSU lets CSPs deploy new software releases and updates without service interruption. Maintaining operational continuity reduces upgrade risks and potential revenue losses, enabling CSPs to quickly adopt new features and patch security vulnerabilities without waiting for maintenance windows.
Together, CI/CD and ISSU support timely feature evaluation and adoption. They enable low-risk deployment of new functionalities, let CSPs gather real-time customer feedback and iterate swiftly, which increases customer trust and loyalty and promotes market responsiveness.
The case for leaving legacy OSS behind
Cloud-native solutions break vendor lock-in through modular, open architectures [3]. That freedom lets CSPs integrate the best components and easily customize services while inviting open-source participation. CSPs can adapt to the market, foster innovation and reduce dependency on costly customizations and sole-source solutions.
Unlike traditional OSS, cloud-native microservices can be update individually without affecting the entire system, eliminating massive validation efforts and upgrade risks. Automated testing and deployment via ISSU enable frequent updates and lower maintenance costs.
By adopting cloud-native OSS, CSPs unlock precious technical resources often tied up in maintaining legacy systems. IT can shift focus from tedious manual tasks to new service development, optimizing network performance, and enhancing customer experiences. CSPs can redirect resources toward revenue-generating initiatives, such as improving existing offerings to meet evolving market demands.
Competitive advantages of cloud-native OSS
Cloud-native OSS sets CSPs free to take part in the growing digital ecosystem [4]. With Open APIs permitting fast integration, CSPs can tap into robust revenue streams through innovative service offerings and industry collaborations. This agility enhances their ability to monetize transformative technologies like 5G and IoT, and to create compelling digital ecosystems.
The resulting nimble response to market demands keeps CSPs competitive in an ever-evolving landscape. By lowering the cost and resource barriers associated with creating, testing and deploying new services, CSPs can quickly answer market shifts with service innovations. That translates to new revenue streams, and allows CSPs to maintain a competitive edge.
Operational efficiency is another critical advantage of cloud-native OSS. CSPs can easily automate routine manual tasks and redirect resources toward revenue-generating innovations, letting providers grow and differentiate with customer-centric service development.
Conclusion: cloud-native OSS completes CSP digital transformation
As CSPs embrace cloud-native solutions, legacy OSS shortcomings reveal themselves. Monolithic architectures stall development and scalability. They struggle with complex 5G services and impede innovation. The struggle inhibits CSPs from satisfying markets with new services and service optimizations, constraining revenue growth.
Cloud-native OSS is vital to opening new revenue streams. Rapid deployment, simple customization, and dynamic scaling allow CSPs to seize emerging market opportunities. Microservices and software containerization support agile development and innovative, personalized services that drive profit [5]. They also empower CSPs to pursue multi-cloud strategies and experiment with cutting-edge AI/ML guided operations.
Cloud-native OSS completes CSP technology modernization, helping them realize the promises discussed at the inception of telecom virtualization. It aligns with the cloud-based evolution of BSS and network infrastructure, catapulting CSPs into a future of agility, innovation and sustained revenue growth. In a competitive environment where adaptability and speed-to-market are crucial, cloud-native OSS enables CSPs to thrive.
The result: Operational efficiency and accelerated service delivery that unlock the full potential of 5G and edge computing investments for unrivaled revenue growth.
Footnotes:
[1] https://www.maximizemarketresearch.com/market-report/cloud-native-development-market/213460/
[3] https://www.tmforum.org/oda/
[4] https://www.blueplanet.com/ecosystem
[5] https://dev.to/documatic/microservices-unleashing-the-power-of-modular-software-architecture-23h6