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The SaaS Superhighway: Telecoms and Software Are Converging

The global convergence is under way - with telecom on top!
By Ash Massoudi
Article Rating:
February 28, 2008 09:00 AM EST
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 6,836

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.

Published February 28, 2008 – Reads 6,836
Copyright © 2008 SYS-CON Media, Inc. — All Rights Reserved.
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More Stories By Ash Massoudi

Ash Massoudi is the CEO and co-founder of NextAxiom and member of the Itanium Solutions Alliance. Before founding NextAxiom, he delivered the real-time assimilation of Red Pepper Advance Supply Chain Planning products within the PeopleSoft technology platform as a result of PeopleSoft’s first major acquisition. While working for Red Pepper Software, he invented a semantic-based network transaction system for recoverability and high-availability of in-memory supply-chain planning and optimization servers. Ash holds a BA in computer science from the University of California at Berkeley.

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Most Recent Comments
Tomoaki Sawada 03/19/08 06:30:30 AM EDT

This is a great article that reminds of us the importance that telcon will play as a crucial player in SaaS ecosystem. Especially analysis of the revwnue flow Telco will enjoy is very intersting. Could you give us the pointer for the source of Figure 1 for further study. Appreciate