What each of those trends will demand of IT, as we saw with SDN and NFV earlier, is agility. Or, let’s put this in even clearer terms: something is going to have to be added to the data center to turbo-charge the ability of legacy IT to deliver agility in the clear absence of existing systems being able to deliver on this characteristic themselves.
What telcos presently have to ask themselves: "What are we looking at? What do we need?"
The most immediate, practical and viable answer to these questions is adopting Service Control. Service Control is a solution built on a mediation platform that quickly and easily enables the sort of new services, and addresses the market trends that we’ve seen are critical to the telco’s present and future success. It is a new architecture specifically capable of enabling the fast delivery of new services effortlessly, because agility is built into it from first principles.
Mediation is all about adapting to the environment, and making data fit with all the requirements and purposes around itself. It is also about doing this quickly, with a very high degree of self-control and flexibility. These are the cornerstones of agility.
To underline the importance of Service Control, consider that today 70 percent of telco revenues still come from traditional voice and SMS services, but this percentage is decreasing exponentially and likely one day soon will be inverse to what it is at present.
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If, for instance, Average Revenue Per Account (ARPA) is to increase due to the number of devices per customer, spreading their traffic between them, then the IT cost for enabling legacy BSS to perform new functions will grow exponentially, as existing boxes are adapted to accommodate the service delivery transition.
We know that the cost-per-processed-event in these systems is already prohibitive, yet now they will need to take on lower-margin or even negative-margin services in parallel to delivering the customer control functionality necessary to simultaneously support high margin, up-sell services. My conclusion is that running these services through a legacy BSS infrastructure (including traditional mediation functions) is strategically a non-starter as the granularity of measurement required will be even more narrow than it is now.
Instead, I believe that something different is needed to make the cost/profit equation work. Dependency on static, pre-integrated and expensive legacy BSS systems has to be decreased while, simultaneously, an efficient and configurable service delivery environment has to be created. The fact is that the situation described above can be handled easily and cheaply by a Service Control approach.