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From Cocoon to Butterfly: Metamorphosis of Digital Service Providers



Technology disruptions, pressure from OTTs, and heightened customer expectations are shaking up the telecommunications industry.  These ever-increasing and constant pressures are motivating Communications Service Providers (CSPs) to transform the way they architect their networks and service portfolios, as they reimagine their roles in a new digital marketplace.

With the ending destination of improved service agility in mind, CSPs are embracing the need to become Digital Service Providers by leveraging 5 key strategies:

1. Digital Diversification: Develop and deliver market innovation that builds new revenue streams and increases shareholder value through new, compelling digital services

 2. Business Agility: Attain capabilities and skills that increase returns and reduce costs through new operating models and simplification/digitization of key processes

 3. Customer Excellence: Deliver compelling customer experiences that reduce churn and optimize revenues through actionable intelligence and enhanced experience management

4. Platform Innovation: Develop flexible service-creation capacity that increases revenue and brand relevance through use-case aligned, ecosystem-enabled service platforms

5. Network Leadership: increased performance and agility that accelerate TTM and reduce OPEX through a compostable, automated network infrastructure

Digital Service Provider transformation won’t be easy.  However, there is a powerful tool at the disposal of CSPs – the Telco Cloud.  With the help of a Telco Cloud, CSPs can evolve to a new operating model that delivers three capabilities:

  • Programmable infrastructure: the ability to drive rapid, flexible consumption of infrastructure resources
  • Automated operations: taking advantage of process automation to accelerate speed of operation and reduce operating cost burdens
  • On-demand services: delivering end-customer services, tailored to the needs of individual users, in a cloud-oriented self-service model.

Let’s be honest, no CSP will be able to complete this transformation overnight.  Depending on network and service priorities and how those priorities align to the DSP strategies above, the starting points are varied.  Regardless of starting point, every step along this transformation journey will offer benefits.  To help illuminate the path and uncover the business potential of Telco cloud, we recommend this STL Partners white paper on Telco Cloud: Translating new capabilities into new revenue.  And as always, to get a customized magazine to help understand more about the Digital Transformation, please visit

Watch Roy Kaser, CTO of Communications Solutions Business, at the recent MWC Shanghai as he describes the five key objectives of a Digital Service Provider. 


Want to learn more? Follow us on Twitter at @HPE_NFV & @HPE_CSP

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