TBR 2020 Telecom Predictions: Leading CSPs and webscales implement new ICT architecture to fully capitalize on digital era

Leading CSPs tackle business and network transformation to capture value created in the digital era

Key technologies, most notably cloud, virtualization, 5G, edge computing, AI and machine learning (ML), are coalescing to usher in a new era, commonly referred to as the digital era, but also referred to as the 5G era or the fourth industrial revolution (Industry 4.0). It is widely expected that during this era, industries will be fundamentally transformed, people’s lives will be greatly enhanced, and productivity will enter a new phase of sustained growth, all of which will contribute to an economic boom and improved standard of living. Communication service providers (CSPs) have a golden opportunity to play a critical role in the digital era by providing not only ubiquitous, intelligent connectivity but also value-added services that participate in and enable this economic development.

While the future looks bright for participants in the digital era, especially for CSPs, the reality is that CSPs’ traditional business models, established ways of working and current network systems are not relevant in this new era, meaning these companies must transform into digital service providers (DSPs) and become more webscale-like in nature. As part of this imperative to evolve, leading CSPs are transitioning their networks to a virtualized, container- and microservices-based, cloud-native architecture. This cloud-centric network architecture will enable CSPs to participate in new value creation stemming from new technologies, such as 5G and edge computing, and adopt next-generation network operations based on data as well as AI and ML for continuous automation. This new architecture will also enable CSPs to take advantage of network slicing and low latency to more effectively support use cases in areas such as autonomous transportation, video analytics, robotic process automation, AR/VR solutions, advanced healthcare applications and cloud-based gaming.

TBR’s research suggests 2020 will be a springboard year for telecom industry development toward the new architecture, with spend in the key markets of 5G, network virtualization and edge computing all poised to ramp up significantly through the middle of the next decade. TBR’s research also suggests that systems integrators will play a much broader and key role in helping CSPs transform their businesses and networks and that webscales will increasingly encroach on CSP turf as they concurrently pursue new value created from the abovementioned technologies.

2020 Predictions:

• Webscales start building out the edge
• Leading CSPs begin commercial deployments of open RAN and vRAN in 2020
• Systems integrators will assume prime role in new architecture build

Register for TBR’s 2020 Telecom Predictions webinar, Leading CSPs and webscales implement new ICT architecture to fully capitalize on digital era, Feb. 12, 2020.

Technology Business Research 2020 Predictions is a special series examining market trends and business changes in key markets. Covered segments include telecom, cloud, devices & commercial IoT, data center, and services.