There is no other way to efficiently or profitably meet the demand or compete with the threat of web-scale OTT competitors – many of which, such as Netflix, use and consume massive amounts of service providers’ network bandwidth and resources. And let’s not forget about those billions of devices.

A hyperscale cloud platform and automation are critically important for transforming to a software-defined methodology and for new service offerings and use cases such as for IoT, 5G wireless services, and mixed reality, which are not possible without hyperscale, carrier-grade, and software-defined cloud networks and automated network functions driven by artificial intelligence and machine learning running on commodity hardware.

Microsoft Azure provides a hyperscale, carrier-grade and commercially-stable cloud interoperability platform for many telecom-specific use cases on a global scale. It also allows telecom companies to access the Azure marketplace, where they can immediately connect to leading cloud applications which are necessary to achieve operational efficiency, security, and interoperability. This didn’t come about by chance, as Microsoft has invested billions in cloud-aware software running on its own hyperscale cloud platform, Azure, for its globally deployed applications. This provides Microsoft with telecom-specific technical experience as well as experience contending with the unique cultural, governmental and regulatory considerations.

“This is our core business,” says Troup. “It’s important to remember Microsoft is a global service provider, and we have built products that run properly and efficiently on a hyperscale, cloud environment.” As a result, Microsoft has built the world’s only Telco Cloud environment specifically designed to provide the elasticity service providers need today.

But cloud is only one part of the equation. To effectively and efficiently operate in a software-defined, digital world, operators need data intelligence that can immediately react to change in networks and the services they support. Microsoft’s Cortana Intelligence Suite and Cognitive Services, Autonomous Solutions, Machine Learning, Stream Analytics, and Edge Analytics can help telecom operators transform their customer experience operations. And they’re actually doing it, too.

Earlier this week, Microsoft announced that Italian telco and ICT Group TIM is basing the foundation of its digital transformation upon Microsoft’s AI technology. Combined with Dynamics and Microsoft 365, CSRs have the powerful tools they need to quickly resolve customer issues across any channel, and predict and avoid issues before they arise.

Amos Genish, TIM Chief Executive Officer was quoted in the press release as saying, “The present agreement is a step forward in DigiTIM’s strategy. We're strongly committed to providing digitization of all processes to dramatically enhance the digital experience for best-in-class customer engagement and to create an effective digital journey. Today we confirm once again our relentless commitment to the execution of the Industrial Plan, of which Artificial Intelligence is a key pillar.”

Embracing the future

Being a service provider today means you are at ground zero of a trillion-dollar global social and industrial revolution. The need to transform is imperative, and touches every part of service providers’ organizations. But service providers don’t have to go it alone or reinvent the wheel. Service providers can turn to technology innovators like Microsoft to learn how many of the challenges have been successfully addressed in a telco-specific environment. They can also leverage their workplace productivity, cloud, and analytics platforms – and their ecosystem of industry partners – to help, as service providers continue to transform their organizations, networks, and vertical enterprise solutions.