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In the rapidly evolving landscape of telecommunications, communication service providers (CSPs) are enhancing their IT capabilities for Business Support Systems (BSS) to take advantage of the economical opportunities presented by 5G, IoT, Mobile Virtual Network Operators (MVNO), and ultra-low latency gaming applications. This transformation enables CSPs to achieve operational agility, reduce time-to-market and operational costs, enhance efficiency, and foster faster innovation. Each CSP’s journey to cloud adoption is unique—some begin with rehosting (lift-and-shift) while others focus on re-platforming or modernization. Regardless of their approach, a cloud cost optimization strategy is essential for realizing monetization opportunities. The AWS Well-Architected Framework’s cost optimization pillar offers actionable guidance for managing systems to deliver business value, empowering customers to control costs and continuously optimize expenditures while developing modern, scalable applications to meet customer demands. In this article, we explore the key pillars of cost optimization from the perspective of telecom BSS.
Pillars of Cost Optimization
Cost optimization is an ongoing process, requiring CSPs’ Cloud Center of Excellence (CCoE) teams to implement strategies that consistently enhance cost efficiency. Five foundational pillars of cost optimization are applicable across nearly all environments, regardless of migration strategy or architecture:
- Right Sizing: Align instance types and sizes with workload performance and capacity needs at the lowest cost. This involves reviewing deployed instances to identify opportunities for downsizing or eliminating instances without compromising capacity or performance.
- Increase Elasticity: The ability to scale resources up or down based on application needs is crucial. BSS workloads require this elasticity to support real-time rating and dynamic bill cycle processing, particularly in response to the demands of 5G digital services.
- Leverage the Right Pricing Model: Selecting the appropriate pricing model is vital for cost efficiency. CSPs can utilize various AWS pricing models, like Savings Plans and Spot Instances, to optimize costs based on workload characteristics.
- Optimize Storage: Match storage classes to specific use cases, data types, access patterns, and IOPS requirements. For instance, mediation systems might need to store Call Detail Records (CDRs) for several days, while historical data retention may be mandated by regulations.
- Governance Mechanisms: Implementing management and governance processes that facilitate ongoing optimization is essential for maintaining cost efficiency.
Right Sizing
Right sizing involves selecting the most suitable instance types and sizes for workload performance and capacity requirements, ensuring costs are kept to a minimum. Telecom BSS components often have unique instance type needs. For example, rating and charging applications that utilize enterprise-class databases may require different instances than compute-intensive billing applications. CSPs can find the best mix of resources and instance sizes on AWS Cloud, whether they need general-purpose instances for Order Management and CRM or compute-optimized instances for billing.
However, many organizations overlook right sizing during the initial migration to AWS, prioritizing speed and performance over cost and resulting in oversized instances that lead to unnecessary expenses. Furthermore, right sizing should extend to database machines across various environments, such as Development and Production, to ensure each is appropriately configured based on its specific SLA and performance requirements. For instance, CSPs can achieve substantial savings by adjusting their database configurations for different environments.
Increase Elasticity
Elasticity refers to the capability of acquiring resources as applications require them and releasing them when they are no longer needed. BSS workloads, particularly those involving real-time processes, greatly benefit from this elasticity. CSPs must ensure their BSS systems can scale effortlessly to manage the demands of a digital service environment and maintain a high-quality customer experience.
To facilitate elasticity, CSPs should identify variable workloads and employ AWS Auto Scaling alongside container orchestration solutions. This ensures resources can scale in response to demand fluctuations while also allowing scheduled scaling for predictable loads.
Leverage Right Pricing Model
AWS presents numerous pricing models that enable CSPs to pay for resources in a manner that is both cost-effective and aligned with their operational needs. Choosing the right pricing model can lead to significant savings. For example, BSS applications utilizing container or serverless architectures can leverage AWS Savings Plans to achieve considerable cost reductions. CSPs can also benefit from using Spot Instances for fault-tolerant applications, maximizing their budget efficiency.
Optimize Storage
CSPs should align their storage class choices with specific use cases, data types, and access patterns. For example, mediation systems that handle CDRs may need to store this data for a limited time, while historical data retention requirements may necessitate a different approach. Utilizing Amazon S3’s various storage classes allows CSPs to optimize their storage strategy effectively.
By implementing these cost optimization strategies, CSPs can maximize the value of their investments in cloud technology, ensuring that their BSS workloads operate efficiently and cost-effectively. For more insights, consider exploring this webinar on career transitions and check out SHRM’s benchmarking reports for expert guidance. Additionally, you can find valuable information on landing a job at Amazon that can complement your learning experience.