By Ocient Staff

Communication service providers (CSPs) generate a massive amount of data — and it’s growing every year.  With the increase of network metadata from calls, internet connections, and IP data, telcos face the dual challenge of managing an overwhelming volume of information while also recognizing the potential it holds for innovation and revenue generation. This data offers valuable insights into consumer behavior, network performance, and new revenue streams. Yet, the strain on existing data management systems and in-house data talent has never been more intense. Navigating the basic security, compliance and operational demands of hyperscale data management — and harnessing its growth potential — requires telcos to explore modernized infrastructure and new models for data warehousing and processing.

The unique scale of CSP data growth

Every call made, text sent, or internet connection established generates a wealth of data that needs to be stored, analyzed, and managed securely. The sheer volume of this data, combined with its complexity, makes telecommunications one of the most data-intensive industries in the world.

Unlike other industries, where data can often be streamlined or simplified, the data in telecommunications is inherently complex and multifaceted. It includes not only customer interactions but also operational data that is critical for maintaining network stability and performance.

The growing challenge of data ingestion and retrieval

As the volume of metadata continues to grow, so do the costs associated with collecting, storing, and managing this data. Data infrastructures are being tested like never before and traditional storage solutions are becoming inadequate and expensive, as they were not designed to handle the current scale of data generated by telcos. Moreover, the need for quick access to this data for real-time analytics and decision-making further complicates the storage challenge.

Legacy infrastructures struggling to meet essential demands

Traditional data management strategies and legacy platforms increasingly struggle to keep pace with explosive data growth. As a result, telcos are finding it difficult and resource-intensive to maintain the essential functions of their business:

•  “Keep the lights on” operations: With growing volume and velocity of dataflows, traditional telco infrastructures are straining under the pressure of the basic “keep the lights on” functions — ensuring uninterrupted service, maintaining network integrity, and supporting customer demands. The costs and complexity of continually bolting additional capacity onto these aging systems are becoming unsustainable. This approach often results in inefficiencies, increased latency, and the risk of system failures, all of which can undermine service quality and customer satisfaction.
• Security, risk, and compliance: Telcos are dealing with highly sensitive data, encompassing everything from personal communications to location data and financial transactions. Protecting this data from breaches, unauthorized access, and other cyber threats is paramount. Moreover, telcos are navigating a rapidly evolving regulatory landscape that varies by region and jurisdiction, including stringent data privacy laws like GDPR in Europe or CCPA in California. The data security and data privacy functionalities of legacy infrastructure were not designed to handle hyperscale data, nor were they built with today’s (or tomorrow’s) regulatory climate in mind.
• Capitalizing vs. expensing assets: Leaders in other sectors have largely gone all-in on cloud infrastructure to rapidly scale up to meet modern data demands. But the “all-in on cloud” approach doesn’t fit the operating models of many telcos, who need to meet stringent data security and privacy requirements. Moreover, telcos typically prefer to capitalize their assets — i.e., spreading the cost of infrastructure over time — rather than taking them as an immediate expense. This financial strategy can complicate the adoption of cloud solutions, which are typically treated as operational expenses rather than capital investments. CSPs need solutions that give them the flexibility to choose on-premises and/or hybrid models, based on their unique needs and strategies.

What does a modernized telco data infrastructure look like?

As the technical demands of managing risks and capturing opportunities gradually outstrip the capabilities of most telcos’ legacy data infrastructures, more telcos are looking to define what a modern, future-ready data infrastructure should look like. Critically, the out-of-the-box cloud solutions that offer an “easy button” for modernization to organizations in other sectors may not fit the heightened data demands and regulatory requirements of the telecommunications industry.

6 key principles of modernized telco data and analytics architecture

• • Scalability: First and foremost, modern telco data infrastructure must be ready to scale seamlessly, accommodating exponential growth in data volume and velocity without sacrificing performance.
  • Flexible deployment and hybrid cloud integration: Modern infrastructure should enable on-premises, cloud, and hybrid deployments to meet diverse operational needs and regulatory requirements. The ability to seamlessly integrate on-premises systems with cloud environments allows telcos to leverage the best of both worlds, combining the scalability and flexibility of the cloud with the control and security of traditional infrastructure.
  • Cost efficiency and capitalization: Telcos should seek out partners that can help drive down storage costs through advanced methods of efficient data storage. But these efficient storage options cannot be cloud-only; telcos need flexible deployment options in order to support unique financial strategies. This allows telcos to capitalize on their infrastructure investments while also benefiting from the operational efficiencies of the cloud, optimizing costs without compromising on the capabilities required to support future growth.
  • Data security, privacy, and regulatory compliance: Telco data infrastructure must include robust, foundational data governance frameworks and data security and privacy functionalities to protect highly sensitive data and ensure compliance with stringent data privacy requirements across global jurisdictions.
  • Customizable architecture: A one-size-fits-all approach rarely works in telecommunications. Telcos need solutions that can be rapidly customized to meet their specific operational needs and business goals around optimizing network performance, enhancing service delivery, and unlocking new revenue streams.
  • Freeing up resources to support innovation: A future-ready data architecture should handle the hyperscale demands of data ingestion and retrieval without significant administrative burden. This frees up internal resources and talent to focus on innovation rather than managing “keep the lights on” demands while battling infrastructure limitations. 

A tipping point for telcos

The explosion of telco data is only accelerating, and regulations on that data are only expanding and becoming more stringent. On top of that, rapid consolidation across the telco industry is further compounding the shortcomings of legacy technologies. Mergers bring together disparate data systems, creating a patchwork of solutions that present new and heightened integration and management burdens. This complexity is a significant barrier to efficient data management, making it harder for telcos to meet the growing demands of regulators and customers alike.

Moreover, the cost of maintaining these legacy systems is becoming unsustainable. Telcos are spending more time and money trying to make old technology work in a modern context, but the returns on these investments are diminishing — and this approach steals finite resources from the necessary focus on innovation and evolution.

In short, telcos increasingly face an unavoidable need to modernize data infrastructure just to remain in business. Yet, survival is hardly the goal telcos aspire to.

Forward-looking telcos see modernization of data infrastructure as an engine to drive competitive advantage — to not only manage the hyperscale demands of core operations, but also put that data to work in new ways to drive innovation. Those that proactively pursue this path will accelerate ahead of their competitors in terms of operational efficiency, customer experience, and diverse revenue generation. Those that delay the transition may ultimately lose the chance.

Ocient offers a proven path to telco data infrastructure modernization

Ocient has helped several of the world’s largest and most reputable telecommunications organizations to modernize their data warehousing and data processing infrastructure to meet — and get ahead of — rising demands. We provide the robust technologies that deliver the scalability and flexibility telcos need. More importantly, we bring deep expertise in building tailored solutions to integrate unique data silos; fit individual data ingestion, retrieval, and analysis demands; and meet specific compliance requirements of various jurisdictions.

Our unmatched combination of technology and expertise offers telcos a proven path forward in building a modernized, hyperscale data architecture that is efficient, scalable, and eminently future-ready.