3 key takeaways from TelecomTV’s DSS report—one will surprise you

TelecomTV’s latest survey on digital support systems (DSS) just dropped, and it’s got me fired up. The results reveal some fascinating insights into the telco industry’s mindset when it comes to the evolution of operations support systems (OSS) and business support systems (BSS). The final report includes some good news, some head-scratchers, and signs of MASSIVE opportunity on the horizon. I have to share my take—after all, I’m on a mission to help telcos understand the greatness of the public cloud.

The good: Startups are where it’s at

The survey results show that 50% of respondents are looking to startups for DSS solutions. HOORAY! That tells me industry leaders are spotting the real transformation engines in our industry.

While incumbent vendors are stuck maintaining their dinosaur systems so they can continue to support their customers, startups are out there sparking real innovation. They’re not weighed down by legacy tech or afraid to use new tools and approaches to solve old telco problems. Take our work at Totogi, where I’m acting CEO. We’ve brought 100% public cloud, real-time online charging to telcos for 70% less than their incumbent solutions. (Read about our work with Zain Sudan.)

Now is the time to embrace startups and set yourself up to modernize at a lower cost using software-as-a-service (SaaS) and pay-as-you-grow models. Use startups on low-risk, low-cost projects to test their tech, and put your incumbent vendors on notice that you’re open to challenging the status quo. You (and your wallet) may be pleasantly surprised.

Biggest disappointment: Still clinging to hybrid cloud

Now, here’s where I’m scratching my head: 62.5% of TelecomTV survey respondents still believe hybrid cloud is the optimal platform for DSS. I get it. It seems like a safe space: some tech on premise, some in the cloud. But a half-measure like this is destined for disaster.

Hybrid cloud isn’t a strategy. It keeps you tied to tech that’s available only on both platforms, which prevents you from leveraging the full benefits of the public cloud. You can’t use the price-optimized chips, specialized databases, and cutting-edge software. I know many in the industry think a hybrid cloud approach prevents vendor lock-in, but the hyperscalers actually make it EASIER for you to leave them than your incumbent vendors do. Hybrid cloud is not cheaper, better, easier, or faster. It’s the worst of both worlds. If I were making this decision for you, I’d pick on-premise before I went hybrid cloud. That’s how terrible I think this approach is! Don’t do it.

Smaller disappointment: We think we have to wait

Despite progress on so many fronts, telcos still seem to think we’re not ready for what’s next. Almost two-thirds (65%) of respondents said they need the right skills and operational structure in place before they can upgrade their DSS. If you take this approach, you’ll never get to your destination in time, and by the time you do, the tech will have changed, especially given artificial intelligence (AI). Learn by doing. Start small, and take on more complexity as your team gains knowledge and confidence. This applies to moving to the public cloud as well as to bringing AI to your organization. Just GO.

The real game-changer: AI

With all the talk about AI in the last couple years, why do people not realize this is the biggest thing to happen in tech in the last 25 years? TelecomTV’s survey shows that 52% of respondents think “AI will help, but isn’t totally necessary.” What??? This couldn’t be more wrong. AI is your big opportunity to flip the script and gain a huge advantage.

While some see AI as a “nice-to-have,” those who embrace it early (i.e. NOW) for high-value impact will reap huge financial rewards down the road. How do I know? Just look at how Amazon, Google, and Microsoft are betting BIG on AI, pouring more than $100 billion into building AI-ready data centers. They know AI is going to be huge, and they’re investing big bucks to ensure they’re ready for it.

AI is already materially transforming customer support. It can reliably and autonomously not only handle tickets, but actually improve customer experience in every industry. Telco is no exception. It can slash costs in one of the biggest expense areas for operators, and that’s just the start. The code-generation capabilities of generative AI will turbo-boost organizations that have traditionally been constrained by their hiring capabilities or budget. I believe AI will have an even bigger technological impact than the public cloud! Just look at how SK Telecom and Deutsche Telekom have repositioned themselves to become AI-first companies. They aren’t crazy; they’re right.

The telcos that move first in their markets on AI will have a massive advantage. Don’t squander this opportunity.

The big picture

I’m psyched that 92% of survey respondents recognize the need to REPLACE current OSS/BSS apps with modern solutions. The next big success story in telco will be an operator that embraces startup innovation, goes all-in on public cloud, and leverages AI to redefine the way it runs its business. It’ll build networks at a fraction of the cost, move at tech-company speed, and delight customers—returning telco’s heyday of the past.

That telco can be yours. You’re on the right track about working with startups. Now, ditch the hybrid cloud crutch and your worries about not having the right skills, and sprint towards your AI-powered future!

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