Industry News Desk
The SaaS Superhighway: Telecoms and Software Are Converging
The global convergence is under way - with telecom on top!
By: Ash Massoudi
Feb. 28, 2008 09:00 AM
For years, the telecom industry has been aggressively expanding into IT services to offset declining revenue from traditional voice and data services.
Today telecom's infrastructure-focused IT services such as computer hosting are already commoditized. Telecom companies are trying to figure out how to climb up the IT stack towards application-focused software services where the business value is more direct and the margins higher. As it turns out, the Application Service Provider (ASP) model proved that turning licensed, single-tenant, traditional applications (such as those from Oracle) into a managed service doesn't have the required economies of scale. More importantly, the ASP delivery model is a stretch for the subscription/usage-based telecom providers.
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