Market Trend: Why Telecom Carriers are focusing on the platform

image001Carriers are focusing on investing in their platforms in order to enable them to offer additional services through partnership ecosystems and thereby more effectively compete with non-traditional players such as Over-the-top (OTT) Service Providers and diversify their revenue streams. While some Communications Service Providers (CSPs) who have the cash, skills, correct positioning and advantageous geographic location are branching out into adjacent industries, other CSPs are focusing on creating a strong platform upon which third-party vendors can offer their services.

Here are some areas of investment for CSPs looking to upgrade:

  • Software defined networks: CSPs are now able to transpose the principles of virtualized compute to their networks and collapse costs by 70% or more in some areas, such as the evolved packet core. Core network components can be run as virtual machines rather than dedicated hardware.  Network virtualization will enable CSPs to offer platform-based services while having the agility to not only empower, but sell end-to-end solutions for instances that generate large amounts of traffic such as high-frequency trading.
  • Network-based security: The proliferation of mobile devices and data-driven traffic poses many security risks to end-users. CSP-hosted network-based security solutions are being deployed to detect security threats and breaches. In order to offer additional security services to both fixed and mobile end-users, CSPs are also partnering with third party vendors.
  • Application Modernization: Many CSPs have grown through mergers and acquisitions, creating hundreds of duplicate applications on various infrastructures. This has created a need for application strategy and more specifically application modernization to reduce cost and complexity.  Processes are increasingly being brought into cloud-hosted environments, and applications are being modernized to streamline internal operations.
  • Web Real-Time Communications (WebRTC): This is an open source project that is

    enabling real-time web-based communication through applications for voice, web-based video chat and social network based sharing. OEMS have been developing these applications in their innovation labs, and some pioneering vendors are offering cloud-based Web RTC services. Partnering with CSPs, these vendors can offer highly scalable end-to-end enterprise solutions, thus making the CSPs more competitive against OTT Service providers.

Interested in learning more about Dell Application Modernization Services? Please click here to contact our team. Please click here to learn about Dell’s Security Software Solutions. Follow me on Twitter at @ElizabethAtDell.

Elizabeth Press

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7 Comments

  1. [...] maximizing average revenue per user (ARPU) and avoiding churn. Many CSPs are meeting this challenge by investing in their platforms and becoming enablers instead of innovators, thus focusing on an application strategy that facilitates partnerships with smaller firms and [...]

    By: Why LTE profitability necessitates a clear application strategy | Laptop Landing on July 18th, 2013 at 4:07 pm
  2. [...] maximizing average revenue per user (ARPU) and avoiding churn. Many CSPs are meeting this challenge by investing in their platforms and becoming enablers instead of innovators, thus focusing on an application strategy that facilitates partnerships with smaller firms and [...]

    By: Server King » Dell’s Digest for July 18, 2013 on July 18th, 2013 at 5:52 pm
  3. [...] as arch rivals, however, can they leverage their respective strengths for mutual benefit.  CSPs are investing in their platforms in order to offer additional services through partne…. Successful collaboration has many requirements, one being a clear end-to-end application [...]

    By: Can Carriers turn the threat from Over-The-Top (OTT) Service Providers into an opportunity? – Direct2Dell – Direct2Dell – Dell Community on August 8th, 2013 at 8:24 am
  4. [...] as arch rivals, however, can they leverage their respective strengths for mutual benefit.  CSPs are investing in their platforms in order to offer additional services through partne…. Successful collaboration has many requirements, one being a clear end-to-end application [...]

    By: Server King » Dell’s Digest for August 8, 2013 on August 8th, 2013 at 5:42 pm
  5. [...] as arch rivals, however, can they leverage their respective strengths for mutual benefit.  CSPs are investing in their platforms in order to offer additional services through partne…. Successful collaboration has many requirements, one being a clear end-to-end application [...]

    By: Can Carriers turn the threat from Over-The-Top (OTT) Service Providers into an opportunity? | Laptop Landing on August 9th, 2013 at 4:06 pm
  6. [...] as arch rivals, however, can they leverage their respective strengths for mutual benefit.  CSPs are investing in their platforms in order to offer additional services through partnership ec…. Successful collaboration has many requirements, one being a clear end-to-end application [...]

    By: Can Carriers turn the threat from Over-The-Top (OTT) Service Providers into an opportunity? | YO Status ->YO Status -> on August 9th, 2013 at 6:18 pm
  7. [...] by 70% or more in some areas, such as the evolved packet core, and enable carriers to offer more platform-based services and bring innovative products to the market quicker. Additionally, SDN will give carriers greater [...]

    By: Dell’s Digest for August 26, 2013 on August 26th, 2013 at 5:32 pm

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