The business model that Communication Service Providers (CSPs) have used for decades no longer works in today’s rapidly changing world of communication. Network traffic has dramatically increased requiring infrastructure and operations transformation, while revenue from voice, message and data has significantly decreased. To add to the challenge, companies such as Google, Facebook and Amazon are providing competing products, usually at much lower prices than CSPs.
The solution for CSPs is to pivot their business model from being straight-forward connectivity providers to becoming digital experience providers. By using customer data and intelligence, such as location, usage and spending data, CSPs can optimize the customer experience to increase customer loyalty. This information allows CSPs to optimize across connectivity services, media and entertainment offers to create a personalized experience for each customer based on their needs and wants. CSPs can also use this data to expand their services into new verticals and to increase revenue from enterprise customers by providing platforms and infrastructure for new services, instead of simply being a connectivity provider.
HPE Enables Transformation to Digital Services Provider
Since the shift to becoming a digital services provider is a complicated transition, many CSPs are turning to HPE for the tools and expertise needed to move to the new business model. By using HPE’s world class programmable infrastructure, expertise in automating operation, and on-demand services, CSPs can seamlessly transition to focusing on providing customer experiences.
HPE has extended its long-standing partnership with Red Hat to now include new offering for its telecommunication service provider customers, by adding support for Red Hat OpenStack Platform and Red Hat Ceph in the HPE NFV System 1.4. Red Hat is a trusted customer choice for telecommunications providers with their leading, open-source based solutions. The HPE and Red Hat partnership allows CSPs to use the HPE world-class standards-based infrastructure and proven software with Red Hat’s expertise in open-source software to deliver a one-stop technology solution for the transition to digital services provider.
The Red Hat integration provides a fully factory-integrated and supported solution that broadens the ecosystem of applications that CSPs can confidently deploy. This allows CSPs to move straightaway to live deployments instead of spending unnecessary time on in house qualification and certification. By using trusted components on both the hardware and software side from HPE and Red Hat, CSPs can significantly accelerate their timeline to deployment.
For more information on how CSPs are seeking to move beyond connectivity to become digital service providers visit, read the “Rapid Digital Transformation Taking Place as Communications Service Providers Look to Play a More Pivotal Role” business white paper.