Strategies for telecom executives: Balancing innovation and OPEX

In my previous post , we explored the growing pressures on OPEX in the telecom sector, from network upgrades and regulatory compliance to rising energy costs and cybersecurity. As telecom executives work to navigate these challenges, finding a balance between fostering innovation and managing operating expenses is no longer optional — it is a necessity for survival.

In this blog, we’ll explore a powerful approach to achieving both in 2025: the concept of composable ERP, a proven path to helping telecom companies optimize their OPEX while driving innovation and efficiency.

The case for composable ERP strategies

Composable ERP strategy focuses on flexibility and modularity, allowing telecoms to integrate existing systems with cloud-based services and other modern technologies. The idea is to break down IT systems into discrete, interchangeable elements that can be configured and optimized independently. With this approach, telecoms can retain critical systems like ERP while updating or replacing other components as needed.

For example, instead of migrating an entire ERP system to the cloud, telecoms could move specific modules, such as HR or finance, while leaving the core system intact. This allows them to leverage cloud technologies without incurring the full OPEX burden of a complete migration, the wait time to realize the investment, or the risk of project failure.

Composable ERP is about creating a more adaptive and scalable technology environment that can evolve with the business, with less reliance on software vendors’ roadmaps.

Supporting innovation with managing OPEX

Composable ERP offers greater flexibility, scalability and efficiency – three ingredients that will help telecom leaders brace for changes in technology, adopt the latest innovations without delay, and allow them to be strategic about resource allocations and investments. Here’s how it helps strike that balance: 

1. Scalability without overprovisioning
    A composable ERP approach enables telecoms to scale infrastructure dynamically, avoiding the costs of overprovisioning. This allows them to add or reduce resources based on real-time demand, paying only for what’s needed.
2. Faster time to market for new services
   Accelerate the deployment of new services by enabling rapid assembly and testing of solution components. This speed to market supports innovation while keeping costs in check, as telecoms quickly adapt to new opportunities.
3. Cost efficiency through resource optimization
   By optimizing existing resources, telecoms can maximize the use of their infrastructure. Composable ERP enables better management of compute, storage, networking, and other limited resources.
4. Integration with legacy systems
   Composable ERP supports incremental upgrades by integrating new technologies with existing legacy systems. Telecoms can leverage modern innovations without overhauling their entire infrastructure, maintaining OPEX predictability.
5. Streamlined operations with automation
    AI-driven automation allows telecoms to reduce operational overhead while improving service delivery and eliminating inefficiencies. By automating tasks once handled manually, employees can focus on more strategic initiatives, while minimizing human error and cost.

The path forward for telecom success

Embracing a composable ERP strategy is essential for telecom companies and can provide the agility, scalability, and cost-efficiency needed to succeed amid a rapidly evolving landscape. By strategically deploying modular IT components, automating operations, integrating new technologies with existing systems, and leveraging a simplified approach, telecom companies can confidently drive innovation without sacrificing operational health or inflating OPEX.

Discover how Rimini Street is helping telecom clients accelerate digital transformation, regain control of their IT roadmap and significantly reduce maintenance costs, while freeing funds to invest in priority initiatives. Drive digital transformation without disruption while maximizing the value of your investments.