Cloud or on-premises for telecoms messaging systems?
Should Mobile Network Operators use Cloud or On-prem Solutions?
The last 10 years has seen an unprecedented move in business services to the Cloud. Cloud-based services help businesses to deliver flexibility and scalability in their solution sets. However, in the telecoms industry, particularly in network operations messaging services there are pressures to stay on-premises with technology in order to ensure data security and regulatory compliance. This article explores the tension within mobile network operators (MNOs) to achieve the flexibility and scalability that Cloudification provides while remaining compliant with legislative requirements and data protection.
Why network operators are thinking about Cloudification?
By leveraging remote server networks, MNOs can attain flexibility and pay only for the necessary resources, effectively reducing expenses associated with hardware installations, backup systems, data storage, and more. The hardware costs involved in delivering messages at scale [think subscriber bases of over 50million people] can be enormous.
Forward-thinking MNOs can capitalize on cloud-enabled agility and reach to create expansive ecosystems and seize more profitable opportunities. These Cloud services need to be defendable from abuse or attack of course but if they can be then Cloud-based telecom services and technologies are recognized as innovation catalysts by industry leaders across sectors, enabling the rollout of new offerings.
Cloud computing for telecom allows businesses to strategically scale their operations to take advantage of growth opportunities. The elastic nature of cloud computing also allows for dynamic task accommodation, such as traffic spikes or high-performance workloads.
Adaptability to the market
Cloud technology supports innovation, enabling operators to easily revamp and update their cloud-based telecom services. Quick adaptation to new market opportunities leads to a competitive advantage and higher profitability due to an influx of new customers.
On-prem solution endurance
On-premises solutions for building messaging systems are still the standard despite high costs associated with hardware. On-prem gives full control over data flows and allows for regulatory compliance to be met.
Creating a messaging system on the public Cloud like Amazon AWS or Microsoft Azure can present issues for MNOs who require a more controlled environment to build their infrastructure.
Increased Data Security Control
With the rise of messaging fraud, including artificially inflated traffic and Smishing, it’s crucial for MNOs to be vigilant with their network traffic. On-site enterprise messaging solutions provide additional security and disaster recovery compared to Cloud options. An on-premise network infrastructure enables the use of firewalls for additional protection. It also allows greater control over how data is exchanged between different systems and staff access.
Fewer Compliance Worries
Controlling which messages are allowed to exit the country is a compliance requirement for most MNOs and network operators. Under a Cloud solution, this control might be lost, which is a red line issue for most MNOs. To use cloud services safely, additional monitoring, regular risk assessments, and additional security measures such as 2-factor authentication are usually required. For EU companies, it’s essential to comply with GDPR regulations. While many cloud services are compliant, EU companies need to ensure that their providers meet the right standards.
Greater flexibility in deployment and customization
On-premise messaging solutions provide enterprises with increased deployment and customization options, surpassing what is typically available through cloud counterparts. Solutions such as Openmind’s Traffic Control can be tailored to meet specific requirements, providing a level of customization that is not always achievable on cloud platforms.
Full ownership of your company data
By utilizing an on-premise solution, companies retain complete ownership and control of their data. When using cloud solutions, there is always a risk of relinquishing control to another company’s staff, security systems, and governmental jurisdiction. While most companies are trustworthy, the lack of control associated with cloud solutions can present risks. This is why most MNOs prefer maintaining their company data in a closed on-premise environment.
Faster support from an in-house team
Although certain cloud providers offer dependable customer support, others may not be as reliable. When encountering issues with your system, it is ideal to have an in-house IT team or a trusted partner to rely on instead of depending solely on external support.
In a post-pandemic world, remote messaging will only become more necessary and more useful. However, the ideal messaging software will depend on your case, and even if a messaging solution is popular with other companies, it won’t always be right for you. Cloud-based solutions arguably bring more security risks and costs to your organization, while ultimately reducing your flexibility.
With Openmind’s flexible solutions you can choose the implementation of your choice, On-prem, Private Cloud or Public Cloud. Whichever system you prefer we can install the Openmind core messaging systems, fraud prevention and business messaging functionality to drive your business. Talk to us for more information.