BT has signed a five-year contract with Amazon Web Services (AWS) to upgrade its internal infrastructure and accelerate the company’s digital transformation. The deal shows that cloud hyperscalers could become ideal partners for telecommunications launching digital transformation projects, an expert said. technical monitor, although they are increasingly competing in the same markets.
The agreement with AWS will be part of BT’s efforts to “transform legacy infrastructure and internal applications” so that they become first in the cloud, modular and reusable across the business. This agreement, announced today, also aims to save BT £ 2 billion a year by the end of fiscal 2024.
The agreement is the latest step in BT Digital’s quest to transform its business. She has previously invested £ 30 million in Distributed, a UK start-up company that provides free-on-demand access to freelance software developers in an effort to give the company an expanded and flexible digital talent pool.
Why does BT want to accelerate its digital transformation?
BT’s revenue for the year to March 2021 was £ 21.3 billion, with a profit of £ 1.8 billion. The company will seek to improve this profit margin and mitigating the impact of legacy technologies could be one way about this, says Dimitris Mavrakis, senior research director at ABI Research. “BT is a very large network operator with significant legacy technologies, especially after the acquisition of EE,” he said. BT bought a mobile operator in 2015 for £ 12.5 billion
Mavrakis continues: “[BT’s] Advances in digital transformation have probably been a major effort to consolidate and homogenize internal applications and processes, including internal cloud computing platforms, which have been used for many years.
He says the partnership with AWS illustrates that cloud hyperscalers such as AWS, Microsoft Azure and Google Cloud are “perhaps best equipped to help network operators manage their digital transformation.”
Content from our partners
“This trend began with outsourcing or selling telecommunications operators their assets in data centers and continues with aggressive partnerships with hyperscalers,” he added.
Although hyperscalers are natural partners for telecommunications, they are also increasingly competing in the same space. Technical monitor reports that major cloud service providers are increasingly offering telecommunications products and services, especially with the advent of 5G cloud and software-defined networks.
Today’s announcement says BT intends to make more “significant investments and use of AWS technology” over the next five years, focusing on container and server-free application workloads, indicating that its investment in the hyperscaler is far from is complete.
How will BT digitally transform its business?
The agreement between AWS and BT Digital aims to help the company build and innovate faster on a new set of digital products and services, as well as reduce IT maintenance costs. It is also expected to provide more value to its consumer, corporate, global and Openreach customers.
AWS will also help BT Digital provide an “industry-leading” cloud architecture for the BT Group, which the company describes as a “dramatic simplification of the company’s current IT state”. It will be cloud-based, micro-service-based and fully modular, giving BT the ability to provide fast responses to customer needs, including easy access to digital services, optimization for mobile use, more choices on how to connect to company and greater security. The priorities were identified in the study of the CEO of the company from 2017who also found that while digital customers like the use of chatbots, poorly designed bots would repel them from company.
BT Digital’s chief operating officer Thomas Duquet says the company has a “great opportunity” to modernize its infrastructure and accelerate BT’s transformation. The company aims to withdraw its legacy applications, related infrastructure and data centers by the end of 2024.
Covid-19 accelerates digital transformation by “several years”
BT is joining other companies that have accelerated their digital transformation since the beginning of the Covid-19 pandemic. According to McKinsey, the pandemic has accelerated the adoption of digital technology by several years as customer interactions have moved online during the many blockades. McKinsey reports that between 2019 and 2020, digital acceptance for customer interaction has accelerated by three years; from 32% in December 2019 to 55% in July 2020.
The need to work from home it also reflects the demand for a more digital approach to the work environment. BT Digital said its transformation will have “security, privacy and design compliance”.
Read more: 5G progress is overshadowed by spectrum controversy