Although it already exists as an effective business tool, Connectivity as a Service (CaaS) is gaining recognition from communication service providers (CSPs). The advantages that it offers for business integration and data retrieval are extremely marketable.
The concept that companies and businesses can meet their growing need for straight through processing (STP) capabilities, which will enable interconnected treasury and risk management (TRM) workflows, offers the next step in the evolution of CSPs.
Historical Support
Originally, fixed line network operators constructed their networks to facilitate voice communication. Communications providers, or voice service providers, focused their efforts on improving the speed and quality of sound transmissions. The philosophy of doing one thing with superior excellence served these providers very well for more than a century.
Likewise, the dawn of mobile network capabilities still primarily focused on voice communication. Yet, typical of life-changing breakthroughs, it was an inadvertent discovery that recognized the concept of data transmissions though a relatively unused service channel.
Since that time, innovation has established a global dependence on data transference. Voice is fading as the preferred form of choice for communication. The current marketplace, the home user base, and just about every “place” is hooked on connectivity.
Current Connectivity Trends
There is an increasing demand to import and export data in a variety of formats between different networks. In response, many CSPs are trying to expand their services to rejuvenate revenues that have been depleted by losses in voice service. Yet, cloud service, Software as a Service (SaaS), apps, and mobile to machine (M2M) expansions are stretching budgets and straining customer relationship management (CRM) practices.
With its increasing competition and a supply/demand ratio that requires reducing margins, this kind of “trying to be all things to all people” philosophy isn’t working for most CSPs in today’s global marketplace.
Advantages of Specialization
Specializing in CaaS may be the answer for many communication providers. Although the push for differentiation has been rampant in recent years, much can be said for companies that focus on providing one unique product or service and doing it well. Although many companies have differentiated successfully, the return to core values by focusing on a single, main business aspect can offer solutions for many CSPs.
The demand for mobile connectivity will only increase. As more end users require STP that connects to multiple networks and the business marketplace expands with new business-to-business (B2B) service models, users will require faster, better connectivity.