Systems integrators will manage shift to network disaggregation to capitalize on 5G era, says IBM
5G has the potential to unleash an unprecedented period of service and revenue growth by the middle of this decade, but not all communications service providers (CSPs) are equally prepared to benefit, according to a recent IBM Institute for Business Value study.
21 Jul 2021
Systems integrators will manage shift to network disaggregation to capitalize on 5G era, says IBM
5G has the potential to unleash an unprecedented period of service and revenue growth by the middle of this decade, but not all communications service providers (CSPs) are equally prepared to benefit, according to a recent IBM Institute for Business Value study.
Our study revealed a subset of high performing CSPs will outperform financially from 5G and 5G-enabled edge computing in the next two to five years. It also indicates that the strategic and operational decisions being made by CSPs today will be critical to their ability to compete long-term. To meet the need for speed and changing customer requirements CSPs are faced with a challenging task of building and operating an increasingly complex and dynamic service.
Our study revealed a subset of high performing CSPs will outperform financially from 5G and 5G-enabled edge computing in the next two to five years. It also indicates that the strategic and operational decisions being made by CSPs today will be critical to their ability to compete long-term. To meet the need for speed and changing customer requirements CSPs are faced with a challenging task of building and operating an increasingly complex and dynamic service.
The transition from pre-integrated network functions provided by the traditional network equipment providers to next generation and disaggregated networks where operators can leverage a broad complex ecosystem, creates greater demand on integration, interoperability, performance, and optimization functions. As CSPs develop future networks, they require collaboration with a systems integration function to help assemble all the components into a solution and then work together to operate it once it has been rolled out. Networks are now resembling - and need to be managed - as extremely complex IT environments. While CSPs can create their own systems integration function in-house, an external integrator may prove to be more cost effective, have greater access to best-of-breed technologies and automation, and on-demand skills as required through various stages of deployment.
Focus on innovation
This is why CSPs are engaging systems integrators to help build and operate networks. The seismic shifts in how networks are built and operated require systems integration and managed services functions that never existed before. Systems integrators, like IBM, can help customers co-create unique solutions while supporting them on their transformation journeys, reduce costs through automation and intelligent workflows, and find new revenue streams in industries that were previously inaccessible. This is important because CSPs will benefit far more from focusing on the big picture: what innovation is required to create new value – not the complex process to make it run seamlessly.
For telcos to create value and innovate around the growth of 5G and edge, telcos are transforming their networks into flexible platforms that can scale to support growing volumes of complex data. Network transformation is the backbone that will enable CSPs to harness the power of compute and connectivity and change how we live and connect. 5G will allow CSPs to leverage technologies such as network slicing to offer a wide range of tailored network experiences from helping remote factory workers gain access to video and real-time AR tools so they can support and predict repairs; to surgeons performing remote surgery; and banks providing customers that live in rural areas access to digital banking services.
The value of adopting an open hybrid cloud approach means that CSPs can keep up with this rapid pace of change and have the flexibility to choose where they build and deploy services. Partnering with companies like IBM that have open, hybrid cloud platforms specifically for telco with a large ecosystem of partners including the traditional NEPs, address the unique needs of the industry, is a benefit to the telco operators, and will help CSPs evolve from networks into platforms.
Network transformation will happen through the migration of network function towards software defined workloads distributed across cloud environments, the maturity of global standards, and the use of slicing, data, and analytics to manage and automate. The evolution from a monolithic network approach, where functions were pre-integrated, to a disaggregated environment presents opportunities and challenges. And, with a wider selection of vendors stepping up to provide the different hardware and software capabilities to drive innovation and competition, it’s clear that a successful transformation requires the expertise of a systems integration partner that brings experience of technology, business transformation and management of complex mission critical projects. This collaboration will also enable the CSPs to focus on the big picture: the innovation to create new value, build new use cases, explore new opportunities, confident that their network will continue to evolve to meet customer expectations.
Focus on innovation
This is why CSPs are engaging systems integrators to help build and operate networks. The seismic shifts in how networks are built and operated require systems integration and managed services functions that never existed before. Systems integrators, like IBM, can help customers co-create unique solutions while supporting them on their transformation journeys, reduce costs through automation and intelligent workflows, and find new revenue streams in industries that were previously inaccessible. This is important because CSPs will benefit far more from focusing on the big picture: what innovation is required to create new value – not the complex process to make it run seamlessly.
For telcos to create value and innovate around the growth of 5G and edge, telcos are transforming their networks into flexible platforms that can scale to support growing volumes of complex data. Network transformation is the backbone that will enable CSPs to harness the power of compute and connectivity and change how we live and connect. 5G will allow CSPs to leverage technologies such as network slicing to offer a wide range of tailored network experiences from helping remote factory workers gain access to video and real-time AR tools so they can support and predict repairs; to surgeons performing remote surgery; and banks providing customers that live in rural areas access to digital banking services.
The value of adopting an open hybrid cloud approach means that CSPs can keep up with this rapid pace of change and have the flexibility to choose where they build and deploy services. Partnering with companies like IBM that have open, hybrid cloud platforms specifically for telco with a large ecosystem of partners including the traditional NEPs, address the unique needs of the industry, is a benefit to the telco operators, and will help CSPs evolve from networks into platforms.
Network transformation will happen through the migration of network function towards software defined workloads distributed across cloud environments, the maturity of global standards, and the use of slicing, data, and analytics to manage and automate. The evolution from a monolithic network approach, where functions were pre-integrated, to a disaggregated environment presents opportunities and challenges. And, with a wider selection of vendors stepping up to provide the different hardware and software capabilities to drive innovation and competition, it’s clear that a successful transformation requires the expertise of a systems integration partner that brings experience of technology, business transformation and management of complex mission critical projects. This collaboration will also enable the CSPs to focus on the big picture: the innovation to create new value, build new use cases, explore new opportunities, confident that their network will continue to evolve to meet customer expectations.
