Telecom industry & AIaaS Unicorns
The telecom industry has served as the carrier for many unicorn subscribers for a long time in every country, such as Telefonica, T-Mobile and Verizon, and many unicorns have seen their traffic grow rapidly in a short time thanks to their use of the network. Are unicorns something that the telecom industry can hope for in the ArtificialIntelligence-as-a-Service (AIaaS) segment? Most telecom operators are actively working to come up with one grand idea that could improve customers' perceptions of value, thus improving retention, rising subscription revenues and increase market share.
As the market gets more aware of AIaaS and increases its demand for existing and new solutions, telecom service providers are planning to roll out additional AIaaS solutions. The anticipated design and operation of AIaaS models are expected to better reflect the diverse business needs of specific customer segments. This type of model is also quite good for many of the emerging technologies, including IoT and big data-based analytics.
To some industry professionals, the importance of AIaaS solutions to the telecom industry can't be overstated. There is a considerable alteration in the way solutions are created, marketed, sold, and deployed in an operator's environment that is required for the use of AIaaS. To both the organization that develops the AIaaS solution as well as to the organization that will use the service, there will be changes. The technology used to implement AIaaS solutions differs from traditional technology in numerous ways.
One reason AIaaS delivery approaches are favored is that they are devised, deployed, and operated by the supplier. Companies that want to use the service will be required to subscribe to it and integrate it with their network and infrastructure. It is important for both the Operators and AIaaS solution providers to start moving away from their existing processes, tools, and systems to effectively develop and deploy as_a_service solutions. The CAPEX light model offered by AIaaS solutions is a commercial model. This flexibility allows AIaaS solutions to be used in various ways.
In business models where AIaaS solutions operate, it is easier to think of the organization providing the solution components as operating in a "marketplace" rather than an "IT utility. Business models such as these make it possible for different types of business relations and partnerships between service providers and service users. The first target segment for Telecommunication Appliance as a Service solutions is likely to be a portion of operators and large enterprise customers who are looking to launch new products or enhance their infrastructure in a lower total cost of ownership (TCO) approach. To facilitate rapid implementation of new business models and new products, AIaaS solutions also make it possible for customers to do so at a lower cost.
Regulatory requirements are changing in tandem with the state of the technology. In addition, the new regulations also come with increased oversight and reporting. Additionally, the regulations also vary from one country to another. In order to meet the regulations for AIaaS deployments, telecom service providers will have to put in place control and monitoring systems. It is typically the case that the regulatory compliance requirements are stricter in the event that end user data is being used. Consequently, in some cases, taking consent from individuals, the law, and/or others is required before data may be transmitted to other countries. The country's regulatory policies concerning domestic and international data/traffic crossing are a delicate issue from a regulatory perspective.
SaaS (Software-as-a-Service) applications like to have a completely centralized deployment. In a typical deployment, there will be a small number of global installations which service customers around the world. Although, however, telecommunications applications are typically different. Because traffic matters, network applications that handle user needs are time-sensitive. This does have the effect of placing limits on the extent of centralization. In order to ensure that the latency and other requirements of applications are met, a complete end-to-end scenario must be taken into consideration. This AIaaS implementation will have a big impact on its overall design. Connectivity parameters like latency, jitter, and so on, as well as connectivity costs, will all be factors in the overall design.
Telecommunications environments have evolved over a long period of time. Multiple technologies and solutions are employed in the operator's environment. The service fulfillment, service assurance, and BSS tools are integrated to ensure a high level of service quality. A new AIaaS implementation will have to integrate into the existing infrastructure. Due to the vast number of integrations required in the operator's environment at service delivery and service fulfillment, the new AIaaS deployment will necessitate a large number of integrations in the operator's environment.
When operators begin deploying solution components from different vendors, more capabilities will be available. While each operator designs and implements its own features, those features vary from one operator to another. Additionally, the reporting requirements of customers are different. Also, in addition to the core infrastructure, the radio side of the company also requires some customizations. Customizations will be necessary for AIaaS applications, as each operator will need support. The networks change over time, evolving along with technological advances and with the profile of the network's user base. AIaaS solutions must be flexible enough to adapt to evolving networks.
Commercial models with subscription-based structures are among the main factors driving the development of telecom AIaaS applications. A CAPEX light and subscription-based pricing model is anticipated by operators. By adopting this model, which can be employed by the operators for the launch of new products, companies can succeed in their marketing strategies. The Pay-as-you-scale subscription model gives the business cases of these new launches lower upfront investments, as well as the ability to scale without increasing total costs. As a result, businesses that operate in this way don't have to make as large a financial investment. They are also less susceptible to business risk, which allows them to innovate and launch new products. The use of these new AIaaS solutions is accelerated by the faster time to deployment of AIaaS solutions.
At this moment, the AIaaS market for telecoms is in the early stages of development. In the future, more and more products are expected to be delivered in a service model. In the current marketplace, AIaaS solutions are commonly deployed for specific segments of the market. This long-term development means that the market will eventually be more mainstream in the future. AIaaS can benefit many types of markets with large growth potential, such as the ones mentioned below.
Upgrading to new technology is costly. Such factors are difficult to ignore, especially in the competitive marketplace they are in today. Upgraded AIaaS commercial models for upgraded solutions offer a nice option to manage the high initial CAPEX investments while also profiting from the service provider's expertise in the delivery of new services. AIaaS solutions are beneficial to Tier-3 operators in that they allow them to purchase tools that provide higher levels of performance and enhanced functionality than those that Tier-1 operators would typically need.
With the high business potential of IoT, it is poised to become a rapidly emerging area. A $6 trillion market is expected to exist by 2020, according to a publication done by Business Insider in 2014. There will be a large share of this market that is catered to. You will need a substantial portfolio to operate in the IoT industry. IoT encompasses smart cities, factory automation, public safety, transportation, and many other areas. To fully solve these problems, you'll have to attack from multiple sides and involve a wide range of solutions, both horizontal and vertical. To meet customer demand for more robust IoT solutions, the network infrastructure of telecom service providers will need to be supplemented with new solutions. A significant challenge is the difficulty that service providers have in developing all of these solutions internally in a reasonable time. By using AIaaS, an alternative deployment model that allows for quicker augmentation of an existing portfolio is available.
AIaaS makes it possible for the service provider to reach a larger scale than is achievable by a single service provider, and may be difficult for the provider to accomplish at the outset. Higher scales allow investments to be made earlier, and lead to economies of scale for the industry.
As cloudification and centralization and standardization of IT systems, as well as globalization increases, businesses that deal with a large amount of traffic are looking at implementing various types of telecom and network services for their enterprise traffic. It makes business sense to invest in customized, secure, and private networks as total traffic grows significantly and as cloudification is used to deploy new use cases that will be added to the portfolio of large corporations. A very attractive alternative for customers such as businesses who want to leverage private telecom networks without having to manage them is the AIaaS model, which allows them to benefit from private telecom deployment with no need to develop their own IT skills. In addition, they have the option to scale up the solution with new products that grow in the market.
There is a groundswell of cloudification underway in various market segments, including e-commerce and location-based services. These segments can benefit from the sharing of data across multiple solutions to enable advanced analytics and machine learning to be used to create new monetization opportunities. Since they have access to a lot of data from their networks, service providers have a great deal of information to work with. The goal of this study is to find new ways to mine this data and generate new use cases through analytics. It is anticipated that the analytics will prove beneficial to a variety of cloud-based applications.
Because of the public cloud, open-source bases, and big data analytics platforms, network service providers have an opportunity to generate revenue from the massive amounts of data they maintain. There are many different types of analytics that can be offered in an AIaaS offering. The computer requirements for analytics use cases will vary in the early stages as many use cases will be put to the test in the market. AIaaS variants allow analytics to be deployed and tested in the market at a lower cost.
Telecom services With the emergence of AIaaS solutions, which target specific segments including IoT, Big data analytics, large enterprise clients, and Tier 3 operators, more businesses will adopt the new technologies. The solutions provided by AIaaS are fundamentally different from traditional ones. When it comes to solution providers and operators who use the solution, both of them will have to transform their current systems, processes, and commercial structure in order to take full advantage of AIaaS opportunities in the market. There are a lot of different ways AIaaS solutions can be delivered, across different market structures, and go-to-market business models.
Incorporating the market dynamics changes into the AIaaS business delivery model is consistent with current market conditions. Such solutions help organizations speed up product development and launch by permitting the quick application of new solutions in the market. In the AIaaS marketplace, enterprises can purchase services in a pay-as-you-grow manner, and that approach encourages growth in new product development. A large number of AIaaS solutions for telecoms have already been launched, and many more are currently being developed. Due to increased demand, it is probable that more business support systems (BSS), operation support systems (OSS), and IT applications for telecoms will benefit from AIaaS solutions. Some of these solutions could allow the telecom industry to rapidly grow the market and offer new features.
The Telecom industry is eager to deploy some of these new solutions so that they can more quickly grow the market and incorporate new features.
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