Vodafone Using Google Cloud To Retain Customers

Currently Vodafone is working with Google to develop a cloud-based data platform to help telcos, (telecoms companies), find new opportunities and improve relationships with their customers. Recent studies have shown that telcos are increasingly struggling to find new revenue streams, despite investing heavily into 4G and 5G networks. 

The partnership is the latest trend showing a convergence between the telecoms market and Silicon Valley, but there are global concerns over where customer data is processed.

Named Nucleus, the platform will have the capacity to process around 50 terabytes of data per day and Vodafone will transfer its existing data to Google Cloud under the deal. In addition, the platform will receive new information from 5000 data feeds. The agreement is for six years and will involve a collaboration of up to 1,000 staff from both mobile operator Vodafone and tech giant Google, located in the US, Spain and the UK. 

The idea is to help Vodafone create and deploy new digital services simultaneously in multiple countries for both consumers and enterprise customers, as well as to gain new insights from customer data to improve relationships and boost customer retention. 

If the platform is a success, it would be a further boost for the public cloud computing market, which is projected to grow by 23.1% to $332.3bn (£239.3bn) in 2021, according to research firm Gartner. 

"Telcos are investing an insane amount of money into network equipment and spectrum licenses for 4G and 5G, but they are struggling with profitability to get returns on their investments, because the investments are extremely high....They need to operate more efficiently to reduce costs, which is why they're using public cloud services " Leif-Olof Wallin, a research analyst at Gartner told the BBC.

Automating Customer Service

Gartner research shows that customers are much happier when they can upgrade to a new phone, change contracts or add services to existing agreements instantly by themselves, without having to wait on hold and speak to customer service staff in call centres. Gartenr say that it is much more expensive to try to acquire new mobile subscriber customers, than it is to keep existing customers happy and tweak their services as time goes on. 

Vodafone has an ambition of being able to eventually automate at least 50% of all changes or upgrades to existing contracts and agreements. As part of these efforts, the mobile operator launched a "friendly" artificial intelligence-powered digital assistant chatbot app called TOBi in 2017. Consumers download the app and ask TOBi questions. The app, powered by IBM Watson artificial intelligence (AI), is able to instantly access information about common topics like international roaming or accessing 5G, and it can also pull up customer records to help users with a problem. 

The mobile operator also has an existing deal with Amazon Web Services (AWS), to bring business applications and computing power closer to where the data is located, using the cloud and 5G mobile internet - a concept called "Edge computing". 

The Google deal is meant to expand on this concept of automating customer service, as well as speeding up the global delivery of consumer and enterprise services. 

Vodafone says it has so far identified 700 use cases where it believes having a data platform would come in handy. It says the benefits would include reducing costs by simplifying and centralising its operations. "This is an important announcement which highlights the level of technology transformation happening in telecoms which is perhaps more dramatic than in any other industry at the moment," said Nick McQuire of the consulting firm CCS Insight

However, there are concerns over how customer data will be transmitted from Vodafone to Google, and any other partners.

In March, Spain's data protection authority AEPD fined Vodafone €8.15m for violating multiple GDPR data protection laws, including Article 44, which forbids the transfer of personal data to countries that are not within the European Economic Area, or to countries with legislations not in accordance with GDPR. In July, the Court of Justice of the European Union (CJEU) ruled that it is illegal to share personal data with US cloud providers, due to concerns over "invasive US surveillance programmes".

"This is clearly a big deal for both Vodafone and Google. However, it appears to ignore the Schrems 2 decision, based on the GDPR, that governs data transfers between the EU and the US... Firms active in the EU, such as Vodafone, may not use cloud services provided by US-based firms, as US law allows US government agencies, such as the NSA, to request and get data on anyone whose data is processed on US-owned clouds anywhere in the world." telecoms analyst Ian Grant told the BBC. In response, Google says Mr Grant's view that it is "illegal" to share data with US cloud providers is inaccurate.

The sharing of personal data between the EU, Switzerland and the US was previously governed by a framework known as Privacy Shield, which was designed by the European Commission.

Other countries can only transmit personal data with the EU if they have data protection laws in place that the European Commission considers to be adequate, however, the framework itself is not mandatory and companies have to decide whether they want to opt in. Either way, no new legislation or deviations from GDPR have yet been agreed by the UK.

BBC:         Digit FYI:       FastNewsXpress

You Might Also Read:

GDPR Will Impact Data Management In The USA:

 

« Spies Are Being Made Redundant By Technology
Cyber Security For Small Business »

CyberSecurity Jobsite
Perimeter 81

Directory of Suppliers

Practice Labs

Practice Labs

Practice Labs is an IT competency hub, where live-lab environments give access to real equipment for hands-on practice of essential cybersecurity skills.

Clayden Law

Clayden Law

Clayden Law advise global businesses that buy and sell technology products and services. We are experts in information technology, data privacy and cybersecurity law.

IT Governance

IT Governance

IT Governance is a leading global provider of information security solutions. Download our free guide and find out how ISO 27001 can help protect your organisation's information.

FT Cyber Resilience Summit: Europe

FT Cyber Resilience Summit: Europe

27 November 2024 | In-Person & Digital | 22 Bishopsgate, London. Business leaders, Innovators & Experts address evolving cybersecurity risks.

Syxsense

Syxsense

Syxsense brings together endpoint management and security for greater efficiency and collaboration between IT management and security teams.

Alert Logic

Alert Logic

Alert Logic delivers unrivaled security for any environment, delivering industry-leading managed detection and response (MDR) and web application firewall (WAF) solutions.

SecuriThings

SecuriThings

SecuriThings is a User and Entity Behavioral Analytics (UEBA) solution for IoT security.

Electric Imp

Electric Imp

Electric Imp offers an innovative and powerful Internet of Things platform that securely connects devices with advanced cloud computing resources.

Flexera

Flexera

Flexera is reimagining the way software is bought, sold, managed and secured.

SecLytics

SecLytics

SecLytics is the leader in Predictive Threat Intelligence. Our SaaS-based Augur platform leverages behavioral profiling and machine learning to hunt down cyber criminals.

Axiad IDS

Axiad IDS

Axiad IDS is a Trusted Identity solutions provider for enterprise, government and financial organizations.

RedSeal

RedSeal

RedSeal’s network modeling and risk scoring platform is the foundation for enabling enterprise networks to be resilient to cyber events.

Sabasai

Sabasai

Sabasai specialises in all aspects of insider threat management from training and education to building security frameworks and insider threat programs to on-site risk & vulnerability assessments.

Archivo

Archivo

Archivo is a value added reseller focused on Disaster Recovery as a Service (DRaaS), backup, hyper-convergence, hybrid storage and Cyber security.

Zymbit

Zymbit

Zymbit provides hardware security modules (HSM) for IoT devices, including Raspberry Pi and other single board computers.

Kape Technologies

Kape Technologies

Kape Technologies is a cybersecurity company focused on helping consumers around the world have a better digital experience with greater privacy and protection.

Turnkey Consulting

Turnkey Consulting

Turnkey Consulting is a leading provider of Integrated Risk Management (IRM), Identity Access Management (IAM), and Cyber and Application Security.

BalkanID

BalkanID

BalkanID is an Identity governance solution that leverages data science to provide visibility into your SaaS & public cloud entitlement sprawl.

Ironblocks

Ironblocks

Ironblocks is a pioneering cybersecurity firm that specializes in delivering comprehensive, end-to-end security solutions for the rapidly evolving Web3 ecosystem.

Reality Defender

Reality Defender

Reality Defender stops deepfakes before they become a problem. Our proprietary deepfake and generative content fingerprinting technology detects video, audio, and image deepfakes.

VT Group (VTG)

VT Group (VTG)

VTG delivers force modernization and digital transformation solutions that expand America’s competitive advantage in the modern battlespace.