The Rise of Cloud Communications: How It's Reshaping the Telecom Landscape

This is a guest blog post by Alan Percy, CMO at TelcoBridges.

Since the start of the pandemic, 93% of enterprises increased their use of cloud communications tools¹ – and to great success. One study found that businesses using cloud comms saw higher ROI (47%), happier customers (46%), and improved employee productivity (32%).²

Fast-forward to today, and cloud communications are no longer a temporary adaptation; they’re a habit. We all know how to hop on a Zoom call, and remote work is taking over as the norm. This shift has even impacted real estate, with thousands – if not millions – of businesses downsizing their offices and moving to a remote or hybrid work environment instead. Everything from how we hire people and where we find them to how we collaborate in the “office” has changed, thanks to cloud communications.

Businesses and consumers alike now expect flexible voice and video solutions, so I think it’s safe to say that the telecom landscape is undergoing a massive transformation. Here’s what I think that means for telecom providers, and why it’s time to go all-in on cloud communications. 

What Changes Are on the Horizon for Telecom Providers?

For all of us in the industry, the push for cloud comms wasn’t a surprise. We all knew it was coming – but instead of taking 10+ years to gain popularity, the pandemic made it happen in months.

Hyperscalers grabbed most of the market at first, but now regional service providers are in a position to keep up with the bigger players. These providers already own the local telephone numbers and have a direct relationship with their customers. They’re gaining ground by offering cloud services supported by hands-on, personalized customer service – something hyperscalers typically lack – and educating customers about these services.

Despite these advantages, I’ve spoken with telecom providers that still aren't sure about offering cloud communications. Moving customers to the cloud can seem complicated, so the hesitation is understandable. Luckily, we’re making network transformation easier and easier with new conversion technologies. Some of the tools we offer at TelcoBridges include:

• Media gateways, which convert older digital technologies like T1, E1, and DS3 connections to SIP-based IP.  This enables providers to migrate customers with older circuits or interconnected trunks to cloud technologies. 
• Signaling gateways, which convert the legacy SS7 protocol – a packet-switched network – to SIGTRAN, enabling customers to leverage cloud-based communication platforms.
• Session border controllers (SBC), which resolve interoperability issues between multiple providers. This normalizes any technical differences and serves a single version of SIP.

What Are the Biggest Cloud Communication Risks and Opportunities?

Besides regulatory changes, I don’t foresee many threats impacting the industry in the next few years. Regulations like STIR/SHAKEN have created a lot of headaches for telecom providers. But with these headaches come opportunities like new revenue streams, partnerships, and innovations, so it’s really a matter of responding to changes effectively.

One thing is clear: the telecom market is moving to the cloud. Now’s the time to jump on cloud communications so you can position your company for success in this ever-changing industry.

As part of the TelcoBridges team, I’m thrilled to play a big part in changing how businesses communicate. If you want to learn how we can help you move your customers to the cloud, give us a shout. And if you’re looking for more cloud comms news, the CCA has a lot of great insights – check out their articles or become a member today. 

Sources:

1. https://www.uctoday.com/unified-communications/the-best-unified-communications-statistics-for-2022/
2. https://www.ringcentral.com/us/en/blog/ringcentral-customer-success-metrics-survey-confirms-the-value-of-cloud-communications/