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Telecom firms can’t deliver new services due to old IT

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6 January 2015

More than three-quarters of senior decision makers at telecoms firms are dissatisfied with their IT architectures, admitting legacy IT prevents them from delivering new services.

Cloud technology firm CloudSense surveyed 350 senior telecoms staff across the US and Europe and found that 79% were dissatisfied with their current IT systems. The legacy infrastructure is holding them back from effectively selling new products as the large majority (82%) say they cannot easily bundle their offerings across all products and services, which is a major disadvantage in such a competitive and fast-moving marketplace.

When asked which technology will most impact their business in 2015 the answers were varied, although the cloud was up front (29%) followed by digital services (21%). The much hyped Internet of Things and wearable technology only scored 13% and six percent respectively. And big data was cited by only 10%.

“According to analyst Ovum, the telecommunications sector will be one of the top industries for IT spending over the next 12–18 months. But the challenge for the vast majority of communication service providers globally is that their current systems are not built to deliver future success,” said Richard Britton, CEO at CloudSense.

In addition, 35% of telecoms firms were concerned that their customers still had a different experience depending on channel. The next two most significant concerns for businesses were the continuing use of manual processes (highlighted by 31%), and the fact that order capture and management systems are not fast enough to change, leading to increased time to market for new products or services (30%).


Antony Savvas, IDG News Service 

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