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Embracing cloud for survival

Nurdianah Md Nur | July 24, 2015
Cloud enables innovation, cost savings and agility – which are all crucial for a telco’s survival, says Ernest Cu of Globe Telecom.

Ernest Cu of Globe Telecom
Ernest Cu, CEO and President of Globe Telecom. 

Embracing cloud to innovate is key for a telco to survive in today's world, asserted Ernest Cu, CEO and President of Globe Telecom, at the recent Amazon Web Services (AWS) Summit Singapore.

"Being a telco, one of the dilemmas we face today is constant disruption - be it from over-the-top players or other emerging technology entities. So we have taken on an approach of innovate or perish in our company. It is the paranoia that we will be extinct if we're limited to the old ways and don't innovate that's pushing us to adopt a cloud-first strategy."

Cu explained that cloud services such as those offered by AWS has enabled its employees to create and experiment with new products and services at a low cost and with minimal risks. "Cloud allows us to create products and services quickly and inexpensively for our customers, which is difficult to achieve with a traditional on-premise environment. With cloud, we can quickly scale a product if it becomes a hit after it goes to market, or shut the product down if it fails."

Besides enabling innovation, cloud has helped Globe reduce its costs and be more agile. "After adopting cloud, we've lowered our total cost of ownership by 60 percent as compared to when we were fully reliant on on-premises systems. We are now more agile too as cloud has reduced our procurement cycles from 80 days to as little as five days," said Cu.

Cu added that the company is now able to scale to better meet customer needs by moving its customer facing website to the cloud. "Prior to major phone launches, visitor traffic to our website can peak to 100 times more than usual; we're able to accommodate this since cloud provides the elasticity and auto-scaling capability."

Moving forward, Cu said that the company is looking at the possibility of virtualising as many on-premises servers as possible to further reap the benefits of the cloud. "At the end of the day, we want cloud to help us reduce our capital expenditure, provide flexibility, innovate, and go-to-market faster."

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