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 the hyperscaler effect

Lessons for telcos: the hyperscaler effect

Lifecycle's CEO, Mo Firouzabadian, has recently given an interview for Connect-World on an issue focused on AI privacy and morality. Mo focuses on the takeaways that operators can take from hyperscaling.

To understand the telco lessons we can take from the hyperscaler effect, we need to understand these two players and their history. Telcos and hyperscalers have a complex relationship that has brought negative emotions through the years. As you know "telcos" means telecom companies and "hyperscaler" means tech companies, and for the last decades it might seem that there was only one room for one industry. Meanwhile, new market demands have created opportunities for the two players to work together, particularly when it comes to improving customer experience.

Early in 2022, telcos faced a set of unique challenges in meeting customer needs at an extremely difficult time. Notably, this demand comes to stay as well as the operators' competition increases, telco companies were forced to think outside of the box and search for solutions that enabled them to keep going with the market changes.
With the success of hyperscalers in mind, decision-makers are curious to know how they can transform the old telcos into the next-gen techcos.

What do telcos have to gain from emulating the successes of hyperscalers?

1. Streamlining internal operations and making business models as lean as possible

MNOs need to achieve service offerings at speed and offer more diverse, differentiated, and value-added services. One company that does this well it's Smarty, with the ratio of subscribers to employees sitting at 1370:1.

2. Transformation and Innovation

Integrating the technologies such as IoT, M2M, Artificial Intelligence, Edge Computing and 5G, and taking full advantage of new cloud and hybrid environments creates unparalleled flexibility. Innovation will be the key decision for customers to choose one operator and not another, that's why MNOs are always seeking ways to make their customers' lives easier.

3. Driving investment and growth

Recent studies have shown that most telcos companies, even the largest ones, don't invest a lot in R&D. Combine a digital digital-first and a customized approach delivers a highly effective financial proposition; this is why investment in R&D is crucial to future growth.

Read the use case "driving investment with 5G" and the full interview on pages 21 and 22 of the Connect World Magazine. To open, click here.