CSPs can realize IT cost savings of 25% over 5 yrs by adopting telecom SaaS services: Research

A new research has found that communication service providers (CSPs) can realise cost savings of approximately 25% over five years by adopting telecom services delivered through a Software-as-a-Service (SaaS) model as compared to the traditional on-premise model of software delivery and consumption.

The research, conducted by Analysys Mason and commissioned by Nokia, highlights the full potential benefits of SaaS that include lower initial investment; up-to-date software and technology; and the ability to launch new services faster relative to on-premise model of software delivery.

While market perceptions exist of telecom SaaS services having higher longer-term costs due to recurring monthly subscriptions, Analysys Mason said those perceptions did not typically take into account the full extent of potential benefits using SaaS services.

"Care, therefore, should be taken to compare not just the licensing costs for various deployments, but also the costs associated with end-of-life upgrades, staffing and maintenance in order to understand the full range of cost savings that can be achieved by using a SaaS-based deployment," said Analysys Mason.

According to Analysys Mason, CSP spending on SaaS has increased in recent years. As CSPs continue to execute on digital transformation projects, it is expected to rise from 5% in 2019 to 11% by 2023.

here is a strong operational and financial case for moving to SaaS services today and away from the dated practice of buying customized software for analytics, security, and other functions that run on costly, complex, on-premise infrastructure.

Mark Bunn, Senior Vice President, Cloud and Network Services at Nokia

More details can be found here.