Build vs. Buy Cloud Communications: 3 Key Cost Drivers for Greenfield Telcos

Telco build vs. buy

Voice services are vital to subscriber revenue. It doesn’t matter what type of CSP you are — fiber ISP, WISP, ILEC/CLEC, satellite, MSP, or cable MSO — future-proofed cloud communications are critical for long-term success. Legacy networks may have met consumers’ needs in the past, but now is the time to move to the cloud.  

For greenfield telcos, the question is whether you will build your own proprietary network or buy a cloud-sourced model? If you think sourcing a cloud communications network will be too complex or capital intensive, think again.

Telco build vs. buy

What Does Build vs. Buy Cloud Communications Mean?

Building a proprietary cloud voice network is a long and rigorous process with many hurdles for communication service providers (CSPs) to overcome. A well-constructed infrastructure requires going back to the drawing board and spending months designing the network, procuring equipment, creating data security and IT infrastructure, and ensuring proper staffing for implementation and continuous upkeep.  

And that’s just the beginning. There are many visible and hidden costs that need to be considered before jumping into such a project, and the costs don’t end once the network is built. Rather, they continue to grow in the form of regular maintenance and upkeep. 

Telco build vs. buy

If you’re looking to grow your footprint and consumer features without a heavy upfront investment, buying cloud communications from a best-in-class vendor will simplify your operations, provide considerable savings on OPEX, and even eliminate CAPEX for on-premises equipment, truck rolls, device provisioning, enhanced 911 (E911) infrastructure, and much more. 

Alianza’s cloud communication platform is free from costly mandatory maintenance contracts for security enhancements, resulting in thousands of dollars in savings for service providers year over year. Each product and solution can be scaled up or down to manage demand, making it easy to keep your margins and costs in sync. And best of all, it’s easy to deploy, so you can get to market faster.  


Build vs. Buy Cloud Communications: Top 3 Cost Drivers

When deciding whether to build a proprietary network or buy into an established cloud communications platform, it’s important to carefully consider both the visible and hidden costs for each of your options. Here are a few cost drivers that can affect your bottom line:  

1. Labor

Labor is one of the largest cost drivers when you build your own cloud voice network. Each step, including design, procurement, implementation, data storage, and maintenance requires months of design and planning to make sure you have the right in-house expertise to get it done the right way. In contrast, buying into a cloud communications platform, like Alianza, offers a seamless solution which does not require you to hire skilled staff for network setup, data storage, or maintenance updates, thus bringing costs down. 

2. Infrastructure

There are huge infrastructure costs associated with building your own network, from procuring equipment and an extensive IT setup, to ensuring your new systems are with the latest security requirements, and more. Doing it right is time-consuming and expensive, because if your infrastructure isn’t solid, your customers won’t be happy for long.  

Alianza makes it easier for you to deploy voice services in the cloud fast. Our cloud communications solution is easy to deploy and even works with most of your existing equipment, thus enabling you to provide quality voice solutions at a fraction of the cost. 

3. Compliance

Telecom service providers must also ensure that their proprietary networks are compliant with the latest industry laws and regulations, such as those for enhanced 911 (E911) like Kari’s Law and RAY BAUM’s Act. Alianza’s cloud-based solution is designed to help service providers to comply more easily with the latest regulations. 

Voice Network Costs at a Glance

Telco build vs. buy

Choose the Cloud with Alianza

Alianza is the only true cloud-native, carrier-grade, full stack cloud communications platform built specifically for service providers, and it includes everything you need to be competitive and accelerate revenue in a competitive market. Here’s why we’re different:  

Telco build vs. buy

Platform Differentiation

Our cloud-based alternatives to perpetual, premise-based solutions like Cisco, Microsoft, and Ribbon, enable agility, faster innovation, and the ability to compete with over-the-top (OTT) providers. 

Telco build vs. buy

No Customer Conflict

Alianza does not compete with service providers for residential, SMB, or enterprise business. Rather, we offer full stack cloud solutions for service to offer directly to your customers. 

Telco build vs. buy

Enablement Support

Fast-track your marketing activities and activate your sales team with training and ready-to-use customerfacing collateral. We have resources to aid your competitive analyses and go-to-market strategies. 

Telco build vs. buy

Self-Managed Solution

Software updates and maintenance are automatically distributed, which lowers your operating costs and the number of skilled employees your business needs to maintain. 

Telco build vs. buy

Remote Deployment

Services are deployed remotely, which saves precious IT resource strain, reduces costs, and creates uniformity across user interfaces. As a result, users get up and running sooner.

Flexibility and Integration

It’s not viable to rapidly build all your infrastructure at once. Alianza’s cloud communications platform integrates with SBCs, PBXs, VoIP switches, and more to provide long-term viability. 

Download our guide for greenfield service providers telecom to help them decide between buy vs build cloud communications. 

Lauren Kennedy