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SALEEM JANMOHAMED: I'm Saleem Janmohamed, Accenture's Market
Unit Leader for the US West.
Today, I'm going to speak to you about how Cloud is changing
the landscape for communication service providers
around the world.
Service providers are facing unprecedented challenges.
Our pool is expected to drop by 3% by 2025.
Mobile connections growth is expected to remain flat
over the same period of time.
This massive five-year deployment
costs that are putting pressure on the balance sheet,
and finally, churn is squeezing profitability.
However, the pandemic has created new opportunities
for CSPs in both the consumer and enterprise segments.
90% of consumers now think that home broadband is imperative.
Greater than 50% of C-suite executives
are accelerating digital transformation, which
includes a shift to Cloud.
And finally, edge computing is expected to grow by 32% a year
over the next four years.
But seizing this substantial opportunity
requires CSPs to move far beyond their standard business
and completely reinvent themselves
into modern telco-tech companies that
bring intelligence and innovation
to the edge of the network.
Service providers need to make four
fundamental strategic shifts.
First, spin off tower infrastructure.
Cell towers represent a very significant CAPEX and OPEX
investment.
And by spinning off towers, operators can drastically
cut costs and increase profits.
Second, adopt a Cloud native architecture.
The shift to Cloud native was a key step
in the transformation of a telco to a techo,
providing a broad range of competing services leveraging
Cloud infrastructure.
Cloud is disrupting the network domain,
which is dominated by proprietary hardware
and software and closed architecture.
The network is rapidly becoming an extension
of the Cloud driven by vEdge.
Third, establish strategic partnerships with Cloud players
like Google to accelerate infrastructure renewal,
improve benefits realization, and boost enterprise offerings.
Hyperscalers, like Google, have the scale economies
and investment capacity to unlock the power of vEdge.
Cloud adoption represents a game-changing pathway
to impact top line by reinventing
processes and services.
And finally, establish network-sharing arrangements
with other CSPs in the same geography.
It's a necessity to drive down the CAPEX and OPEX
costs of deploying and operating a 5G network.
Cloud will be the linchpin to achieve
the new economic sustainability and to establish the completely
new operating models, processes, organizations,
and products and services.
Accenture's Cloud First group provides
a full range of services to help businesses
accelerate digital transformation,
innovate faster, and create differentiated sustainable
value.
Powered by 70,000 Cloud professionals and a $3 billion
investment executed effectively, the Cloud
will fundamentally change the game.
It has the power to transform CSPs
into modern telco-tech companies that orchestrate value-added
solutions to meet the needs of an entirely
new breed of customers.
With disruption only accelerating, the time to move
is now.