Saturday, May 28, 2022

Slide Slide
Home SAAS SaaS model can cut IT costs up to 25 per cent

SaaS model can cut IT costs up to 25 per cent

There are many factors that CSPs need to weigh when looking at the increasingly attractive option of adopting new capabilities through a SaaS model

By adopting telecom services delivered through a Software-as-a-Service (SaaS) model, communication service providers (CSPs) can realize IT cost savings of approximately 25% over a five-year period, according to new research released today from Analysys Mason.

The projected reduction compares to the cost of the traditional on-premise model of software delivery and consumption, which entails CSPs having to buy, manage, and maintain their own complex hardware and software infrastructure.

While market perceptions exist of telecom SaaS services having higher longer term costs due to recurring monthly subscriptions, Analysys Mason said those perceptions did not typically take into account the full extent of potential benefits using SaaS services, including lower initial investment and always having the latest software and technology. In the case of the on-premise model, CSPs often have to buy data centre resources every five years or so and use IT consultants regularly to manage their elaborate IT environments.

“Care, therefore, should be taken to compare not just the licensing costs for various deployments, but also the costs associated with end-of-life upgrades, staffing and maintenance in order to understand the full range of cost savings that can be achieved by using a SaaS-based deployment”, Analysys Mason said.

“CSPs may gain more benefit by outsourcing the responsibility of a deployment’s maintenance to a vendor, thereby enabling internal staff to focus on improving revenue generation. This also means that resources that would have otherwise been spent on hardware can be spent elsewhere”.

In producing its report, Analysys Mason said it considered cost-saving benefits related to reliability, time-to-market, scalability, staff training, updates and upgrades, maintenance, IT hardware reduction, security; as well as the improved potential for revenue generation tied to enhanced reliability, time-to-market, and updates and software upgrades from the use of SaaS services.

Accounting for 5% of CSPs’ operational expenditure in 2019, CSP spending on SaaS has increased in recent years, according to Analysys Mason; that is expected to rise to 11% by 2023, as CSPs continue to execute on digital transformation projects.

Justin van der Lande, Research Director at Analysys Mason, said, “As this research shows, there are many factors that CSPs need to weigh when looking at the increasingly attractive option of adopting new capabilities through a SaaS model. In many scenarios, the long-term software costs associated with SaaS can be outweighed when CSPs consider the significant savings that are possible in other areas, as well as reduced time to value for the creation of new services. Long-standing CSP pain points are also avoided: no more having to plan how data centre resources, testing of changes and right scaling of hardware to best meet capacity needs; these all fall to the SaaS vendor”.

Mark Bunn, Senior Vice President, Cloud and Network Services at Nokia, said, “With monetization of 5G assets at the top of their agenda, CSPs need cost-effective tools that not only support delivering on the promise of 5G, but strengthen their ability to get more value for their expenditure. There is a strong operational and financial case for moving to SaaS services today and away from the dated practice of buying customized software for analytics, security, and other functions that run on costly, complex, on-premise infrastructure”.

Also readCIO News interviews Shri Wangki Lowang, Minister (IT) of Arunachal Pradesh

Do FollowCIO News LinkedIn Account | CIO News Facebook | CIO News Youtube | CIO News Twitter

About us:

CIO News, a proprietary of Mercadeo, produces award-winning content and resources for IT leaders across any industry through print articles and recorded video interviews on topics in the technology sector such as Digital Transformation, Artificial Intelligence (AI), Machine Learning (ML), Cloud, Robotics, Cyber-security, Data, Analytics, SOC, SASE, among other technology topics

khushbu
Khushbu Sonihttps://www.cionews.co.in
Chief Editor - CIO News | Founder & CEO - Mercadeo

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -1x1 banner1x1 banner1x1 banner1x1 banner

Most Popular

SBI Card appoints Vinod Kumar Gupta as VP – Head Cyber Security operations

Back in 2008, when he was the lead solution architect at Data Secure Solutions, he career started in cyber-security. In 2011, he joined MothersonSumi...

What strategy can technology leaders implement to protect the endpoints from being compromised even after cyber-criminals attack and try to steal company data?

Endpoint users must be trained and retrained to avoid installing freeware or pirated software and to detect any unusual activity This is an exclusive interview...

Delhivery granted a patent for its proprietary technology product, Addfix

The patent covers Delhivery’s innovation in address verification and location mapping - ‘System and method for validating geographic location accuracy for an address.'  India, May 27,...

Technology leaders must develop a genuine interest in the well-being of their customers, says Dr. Bharathy CSS, Founder | VR | AR | MR...

The pace of emerging technologies like AR and VR technology is extremely fast and leaders need to be nimble and adapt to these changes This...

Recent Comments