CSPs may be able to use software-as-a-service deployments to lower the total cost of ownership

Software-as-a-service (SaaS) deployments have become increasingly common among communications service providers (CSPs) in recent years due to their wide range of benefits; a reduction in the total cost of ownership (TCO) is the most commonly cited. CSPs are facing challenges in the form of increasing competition from digital-native service providers and changing consumer behaviour, so costs must be reduced and solutions must become more agile to enable CSPs to remain competitive. One solution to these issues may be to transition from traditional, on-premises solutions to SaaS deployments. In this article, we will assess the main TCO assumptions for both SaaS and on-premises deployments and consider in which cases a CSP may opt for one over the other. We will also outline the other aspects that CSPs should consider.