CIOs Striving To Switch Telecom services To Cloud

by CXOtoday News Desk    May 25, 2015


Cloud technologies are becoming confusing to many CIOs, especially when it comes to offering telecom solutions like unified communications. A new study reveals that many businesses are unsure about the inherent benefits and risks associated with the cloud when it comes to telecom services.

The study by West IP recently surveyed more than 300 IT managers to gauge their understanding of cloud computing and how it can help IT departments to deliver telecommunications services to their companies. While about 75 percent of respondents believed that quality of service would either stay the same or improve after switching their telecom services to the cloud, only 40 percent said their organizations had actual plans to move to the cloud.

One of the biggest reasons causing telecom companies to lag behind in cloud adoption is the perceived lack of security inherent in the cloud compared to legacy solutions. About 55 percent of respondents said they don’t believe communication service providers offer adequate security checks with their cloud telecommunications offerings, according to the survey.

Of those who would be willing to make the transition to cloud services, 55 percent said they would implement a private cloud solution, while 32 percent said they would prefer a hybrid deployment.

Unsurprisingly, cost was also among the top concerns for companies considering a change to their IT infrastructure. Fifty-four percent of respondents expected to recover the entire price tag in savings, while 46 percent did not believe the return on investment would be enough to justify an infrastructure switch.

However, respondents who did believe they could recover their ROI said they expected to realize saving through reduced cost of doing business, including maintenance costs and a trimming of their IT staff. About 93 percent of respondents believed they could recover the entire cost of their investment in either five years or less. Interestingly, 66 percent of managers with company budgets exceeding $5 million expected to cover their operating costs through savings.

While respondents remained divided on where the biggest cost reductions from moving to a cloud-based infrastructure would come from, IT managers listed reduced capital expenditures and reduced operational expenditures, respectively, as the top reasons for moving to the cloud. West IP concluded that although the end goal of all companies is to save money, different organizations will undoubtedly employ their cloud solutions in different ways depending on their business and customer base.

The study states its important to remember that the decision to move to a cloud-based infrastructure depends purely on the business in question. While there are certain cost and security benefits associated with the cloud, there are certain businesses that would simply prefer to continue utilizing a legacy solution. However you choose to set up your infrastructure, knowing the strengths and weaknesses of both options is the most important factor when considering a major business change.