2019
Unlock the possibilities of technology to support your digital transformation journey
Featuring exclusive research from Gartner. An era of change The international business landscape is constantly changing and carriers must also adapt to best serve their customers. Telefónica is leading the way with the new technologies and strategies that are shaping communications today, Across the world, economies and helping our customers to prepare for the future societies are being fundamentally and capture new opportunities. transformed by digitalization. New disruptive technologies are changing I hope you find the enclosed exclusive research the way societies face crucial about disruptive trends for CSPs from Gartner of challenges and it is important that the interest. wholesale community’s strategies evolve in parallel and in response to this wider consumer paradigm shift. Juan Carlos Bernal CEO, Telefónica International Wholesale Business
Telefónica’s four major, distinctive technological The transformation of Telefónica’s transformation journey platforms. The first platform consists international wholesale business is of our physical assets, such as centred on key fundamentals; the During the last few years, Telefónica networks and data centres, whilst the way it offers core services to maintain has been immersed in a period of second relates to operations and leadership and differentiation, and the transition with the end goal to meet commercial systems along with IT need to constantly improve services our customers’ growing expectations management systems which support with better access options through and retain their trust to ensure long the network. The third platform is satellite, fibre, mobile, and radio, and term commercial success. about delivering the best products and widening coverage for ITFS, SIP Trunk services, while the fourth platform and Ethernet services. Applying innovation to the way we do leverages the real value of customer business, operate and collaborate has knowledge, closely linked to Big Data “Applying innovation to the way we been key to this process. This and Artificial Intelligence. do business, operate and philosophy has been applied to our collaborate...” Network evolution - key pillar of growth
Our network is one of our greatest structured in a more dynamic Full as well as monetize every subscriber assets, and connectivity is at the very Stack System, placing our customers interaction. We also have a worldwide heart of our business. Whilst we have in control. IPX transport service which leverages invested in our fixed and mobile our roaming and signalling services networks, the future is digital and as Enhancing Core Services and extensive A2P/P2P messaging such we are evolving towards a flexible, - through open and efficient coverage. Furthermore, we are programmable, software-based, redesign evolving our Messaging platform to future-proof network. Our journey will respond to the increasing demand for allow us to transform our transport and We are continuously enhancing our rich communication services. core infrastructure in all geographies; international wholesale portfolio. In improving communication capabilities Voice services we have been improving New Digital Services for all of our customers. routing automation and fraud detection - innovating to stay ahead systems, and extending the coverage of our ITFS and Voice in the Cloud At the core of our platform strategy is a “...the future is digital and as such services. At the same time, we have firm commitment to the advancement we are evolving...” begun to support VoLTE traffic. of our technological innovation Automation and virtualization capabilities and integration of new - fundamental for the future of In our Carrier Enterprise family of technologies, like the Internet of networks services we are providing new SD- Things, Big Data, Artificial Intelligence, WAN and Cloud services which deliver Cloud, Security and other digital Automation and virtualization are automatic and on-demand network solutions. Digital transformation brings already an essential part of our services to meet corporate customer countless opportunities for Service networks, whilst Network Softwari requirements. In addition to our Providers, but the industry also faces a zation is transforming how services are extensive coverage of MPLS, Ethernet challenge to manage the transition deployed, delivered and consumed. or Internet services, we are fully from traditional services and traditional supporting the industry’s effort to sources of revenue to new digital ones. The automation and softwarization of develop APIs to provide end-to-end, This is where an innovative and our infrastructure and services allows inter-carrier service settlement. experienced wholesaler such as us to orchestrate services in a more Telefónica International Wholesale dynamic, flexible and efficient way Our portfolio of Satellite services Services (TIWS) can help other service whilst improving all processes: pricing, enables us to provide a complete providers to succeed. ordering, provisioning, ticketing and approach in terms of coverage and billing. It also provides an opportunity combined service solutions, allowing We have made considerable effort to to enhance customer experience; a our customers to reach any location establish a Digital service portfolio major factor for business success. across continents. that meets the needs of the wholesale market. As a result of that focus, we We have a fully virtualized network In addition, within our Mobile services have achieved great success with IoT system, which enables our customers we have developed Marketing services, either coverage or to access a virtualized platform, Campaigns Manager, which allows coverage+service platform, and available worldwide, in order to extend operators to generate personalized security services which can be their own infrastructure and products campaigns, in real-time and through embedded into the connectivity. globally. Furthermore, we have made multiple channels, helping them to significant investment in automation increase their revenues and create “...we have achieved great success tools meaning our BSS and OSS is new business models for third parties, with IoT services...” Looking to the future
Transformation is a continual journey Telefónica’s competitive catalogue of of being able to deploy at a global level and unlocking the possibilities of new services, combined with extensive and execute at a local level, makes us technologies and harnessing their experience gained from having over well placed to face all the challenges potential will enable us to build both 340 million customers operating in 17 that lie ahead and to continue to for ours and our customers’ future. countries, as well as the combination deliver for our customers.
About Telefonica International Wholesale Services
Telefónica International Wholesale Services (TIWS), the wholesale carrier of the Telefónica Group, provides world-class wholesale services to fixed and mobile operators, service providers, carriers and OTT-Media companies. Our comprehensive global portfolio includes Voice, Carrier Enterprise, Mobile and Satellite services, innovative Digital solutions (Security, Cloud, IoT, Big Data) and end-to-end solutions for enterprises. As a leading global provider of a wide range of integrated communication solutions, Telefónica has a global footprint, with presence in over 40 countries (particularly strong in Latin America & Europe) and service reach in more than 170 countries.
For more information, visit our website: wholesale.telefonica.com
[email protected] @telefonicab2b Research from Gartner: Market Trends: Top Five Disruptions for CSPs, Worldwide, 2018-2023
A slew of new technologies will disrupt to link these technologies with New technologies continue to enter the communications service providers’ business implications, as well as market at an accelerated pace, business models and the industry identify promising, novel use cases. impacting the CSP’s established structure. This research helps CSPs’ business and operating models. The technology business unit leaders to • Rejuvenate the workforce by pace of change will challenge the ability respond effectively and capture reskilling and retooling existing of even the most capable CSP opportunities as they arise. employees. Revise incentives and organization to adapt and respond. key performance indicators to drive Key Findings change. Increase the ability to Gartner identified four primary attract talents by revamping the disruptive trends arising from new • New technologies such as open- traditional CSP image and technologies for 2018 to 2023 as source software, virtualization, introducing modern digital shown in Figure 1. These four disruptive wireless edge computing and workplace practices. trends in turn create a secondary artificial intelligence can radically disruptive trend onto the CSP’s alter business relationships and Introduction workforce — the nature of work in CSP competitive structures. In the organizations will be radically future, communications service As part of Gartner’s communications transformed over the coming years. providers (CSPs) may even compete service provider (CSP) research, we directly with some of their network have been identifying major disruptive “By 2023, over 35% of roles in CSP equipment provider partners. trends that will impact CSPs’ business organizations will either be new or prospects and market competitiveness. redesigned.” • Many CSPs still struggle to become The previous iteration was published as early adopters or fast followers of “Market Trends: Top Five Disruptive Market Structure Trend these technologies. It remains Trends for CSPs, Worldwide, 2017- difficult for them to develop the 2022,” and this current research Technology-Driven Disruptive Trends bold vision and agility required in continues our study into this area. Will Present New Opportunities for order to capture market Visionary and Agile CSPs opportunities proffered by these Many of the trends identified in our trends. past research continue to filter through The five disruptive trends will the market, even as new disruptive simultaneously create new market • An extensive restructuring/ trends emerge to create fresh opportunities and turn existing or transformation of the workforce is a implications for CSP business models traditional businesses on their heads. critical, secondary disruption arising and market opportunities. This Whether these disruptive trends create from these technologies. An research is aimed at informing or destroy value for the CSPs will adaptable and agile workforce is technology business unit leaders at depend heavily on their ability to now key for CSPs to avoid network-based CSPs (see Note 1 for quickly assess the implications of each becoming marginalized. definition) — hereafter, referred to as trend and effectively harness the new CSPs — to new disruptive trends, even technologies for their own benefit. With Recommendations as they continue to address the good leadership and management, challenges associated with trends we CSPs can benefit greatly from these CSP technology business unit leaders identified in the past. disruptive trends (see Figure 2) and responsible for exploiting CSP market differentiate themselves from their dynamics should: Specifically, technology business unit competitors. leaders in Tier 1 CSPs can use this • Strengthen strategic flexibility by research to validate and supplement There are key business implications broadening partnerships to include their business paradigms and associated with these disruptive trends: new or alternative technology assumptions, while technology providers. This will enable them to business unit leaders in competitive • There is a strong imperative for CSPs maintain sufficient bargaining CSPs can use these insights within their to be early adopters or fast followers power (or avoid over-dependency strategic planning exercises. of the technologies highlighted in on traditional partners) as business this research — they need to acquire relationships shift. Market Trend bold visions and be agile enough to grasp the market opportunities The Pace of Technology Changes • Seize opportunities stemming from resulting from these trends. Continues to Disrupt CSPs’ Business new, disruptive technologies by Significant competitive advantage is and Operating Models enhancing the organization’s ability expected to accrue for these CSPs. Figure 1. The Five Disruptive Trends Impacting CSPs, 2018 to 2023 • The CSP organization must be adaptable and be able to reinvent themselves since skill sets and competencies will change dramatically. The quality of the CSP leadership will be pivotal to the success of workforce transformation efforts.
• The market structure will increase in complexity. Traditional business relationships and bargaining power between CSPs and their vendors will evolve, sometimes radically. Some CSPs may even compete against the vendors. New partnerships may be established as well.
Trend 1: CSPs’ Use of Open- Source Software Will Enhance Their Competitiveness and AI = artificial intelligence; CSP = communications service provider; WEC = wireless edge Redefine Relationships With computing Traditional Vendor Partners
Source: Gartner (March 2018) Continued investments in open source for CSP operational technology (OT) evolution is resulting in a gradual yet Figure 2. Potential Benefits From the Disruptive Trends definitive shift in traditional CSP-vendor relationships. Open-source has started to influence technology investment decisions through increased disaggregation/componentization and introduction of software. The year 2019 could well prove to be the inflection point for change.
Starting with generic IT applications such as databases and application servers, the influence of open source has spread across the CSP technology stack.1 CSPs are also now working with nontraditional partners such as Big Switch Networks, Mirantis and Red Hat.
Major CSPs are gravitating toward open source as one of the primary levers for future technology development. It has now become a wider initiative with Note: The “enhanced ability to compete” relates to competition against fellow network- CSPs collaborating with successful based CSPs and over-the-top (OTT) service providers, as well as cloud-based CSPs (see Note cloud service providers such as Amazon 2 for definition). Web Services, Facebook, Google and AI = artificial intelligence; CSP = communications service provider; VNF = virtual network Microsoft on many networking-related function projects. More CSPs are viewing open source as a faster approach to Source: Gartner (March 2018) achieving progress as compared to standards organizations, where lengthy compromises may be required to ratify technology standards. Impact on CSPs In the medium- to longer-term, CSPs CIO and CTO organizations. Charter have to contribute actively to open- it to track developments in open- Open source is a game changer as it can source communities if they want to source communities, participate in accelerate innovation (and hence go-to- focus on agility and innovation — a development efforts on selected market faster) allowing CSPs to tap shift in mindset is required as CSPs projects, collaborate with others new sources of innovation. The cost of tend to guard their intellectual property within the ecosystem and prepare application development can closely. The potential value of open the organization. The level of potentially be reduced, as CSPs need source is limited if CSPs restrict participation should be guided by not pay licensing fees for proprietary themselves to just utilizing the open- appropriate governance software. There is also the advantage source components. Active (particularly for sensitive projects). of vendor neutrality — CSPs can participation will require a change in reduce their reliance on vendors’ engagement approach with open- • Initiate skill-development programs proprietary solutions. source communities and partners. specifically for participation in open-source projects and utilization New alliances can be forged among “By 2022, 50% of Tier-1 CSPs of open-source systems. Train CSPs that adhere to a common open- will contribute at least one people not just on technology source architecture; gaining global scale open-source project directly or aspects but also on intellectual and efficiencies from common through partners, up from less property management, including processes and technology. CSPs can than 10% today.” legal aspects associated with enhance their competitive capabilities contribution to, and utilization of, As CSPs increasingly adopt new to address rivalry from global digital open source. technologies such as artificial giants and cloud-based CSPs. intelligence (AI) and blockchain in their • Enhance procurement processes to operational technology stacks, the The implications of open source extend include sourcing of open-source CSP’s role as contributor will grow. across multiple activities and can be systems and their support Increased participation in open-source classified as external or internal (see requirements. Realize that open- initiatives can enhance CSPs’ Figure 3). In order to realize the benefits source software has its own costs bargaining power with their established of open source, internal changes are that need to be factored into your vendors. required from CSPs. They will need to procurement planning. change their entire approach to sourcing and support systems — new Action Plan for CSPs Trend 2: Network skills and competencies are required. Virtualization Initiatives Will Effective utilization of open source will • Develop a center of excellence for Require CSPs to Reinvent also require changes to the CSP’s open source that transcends the Themselves First operating model. Network function virtualization (NFV) and software-defined networking Figure 3. Two-Sided Implications of Open Source on CSPs (SDN) began nearly two years ago in network-based CSPs. Starting with
objectives to reduce capital and operating expenditure, the drivers have evolved into automation, and more effective operational and business models (for example, “as-a-service” models) to justify the business case.
Aspects of network virtualization — such as virtual network function (VNF) life cycle management, licensing and zero-touch orchestration — continue to be challenging. Nonetheless, leading CSPs have realized the importance of this transformation. In most cases, the emphasis is now on the opportunity and cost of avoiding/delaying the CSP = communications service provider transformation. With this posture, network transformation and Source: Gartner (March 2018) management have started to influence the rest of the CSP organization and its equipment (vCPE) strategy will enable comprising cross-functional expertise. engagement with the external CSPs to target a much broader market Some CSPs (such as Telefónica and environment. segment than previously. Large, global AT&T) have started converging their CSPs with powerful brands can launch network and IT organizations. The CSP’s network virtualization their own-branded vCPEs (such as journey will lead to a cloud-based core, AT&T’s FlexWare). These have Large, global CSPs may also develop edge and access networks; distributed implications on: their own VNF-based services aimed at architecture and automated the enterprise market — as some operations. This level of change will be • Product strategy (for example, traditional vendors are now starting to disruptive to CSPs and will demand product composition for network/ target the same market themselves — comprehensive planning. infrastructure as a service) this may engender changes to the CSP’s relationships with them. “By 2020, 60% of network-based CSPs • Go-to-market planning (for will face deficient outcomes from NFV/ example, the number of market Action Plan for CSPs SDN implementation programs due to segments to be targeted inadequate planning and collaboration.” concurrently, sales channel and • Include these two broad set of customer acquisition journey) objectives in your NFV/SDN Impact on CSPs strategy: • Business model and service delivery To reap the benefits of NFV/SDN, CSPs (for example, the extent of • Value delivery in the short term must take it upon themselves to automation) (for example, through vCPE/ reinvent their own organization, software-defined wide-area processes and operations while Since significant value from network network [SD-WAN] strategy). executing this wave of transformation. virtualization is achieved from the These internal disruptions can be closed-loop automation of business • Longer-term disruption across broadly classified into four categories operations, there will be implications on the CSP organization. (see Figure 4). service operations, infrastructure management, product/service • Prepare your organization for The virtualization of network functions development and IT operations. These continuous operations/delivery and development of application stores will require the CSP organization to be through training, pilot programs along with a virtual customer premises restructured into project teams and a gradual shift to DevOps and agile practices. Figure 4. Internal Disruption in CSPs Due to NFV/SDN • Establish a change management office to navigate and monitor the transformation journey across different functions, such as human resources, network operations and maintenance, IT and customer care.
• Look beyond your traditional vendors — for example, niche players, open-source communities and even collaboration with cloud-based service providers — in order to accelerate the pace of change and innovation. Partner with vendor communities to source components such as microservices for your targeted operational architecture, instead of monolithic systems.
CSP = communications service provider; NFV = network function virtualization; SDN = software-defined networking
Source: Gartner (March 2018) Trend 3: Wireless Edge market opportunities (such as drones, • Focus on WEC solutions that are Computing Will Allow CSPs to autonomous vehicles, factory open and able to interwork with Participate in New Cloud automation and robotics) that require other edge providers by including a Computing Opportunities reliable, ultra-low latency networks. In fluid marketplace for compute, addition, enterprises are expected to storage, open application Wireless edge computing (WEC) generate an increasing amount of data programming interfaces (APIs) for focuses on the CSP providing compute from outside the traditional, centralized other services and microservice and storage capabilities within the radio data center or cloud.2 The CSP’s providers. access network (RAN) elements, or at distributed network presence is a feature the network edge. This will be attractive that is not easily replicable by other Trend 4: AI Will Drive to application and microservice service providers — it must be viewed as Operational Efficiencies and developers and content providers. The an asset to be exploited by CSPs. Create New Opportunities for RAN edge offers an ultra-low latency CSPs and high bandwidth service CSPs can also offer new services to environment, as well as direct access to their customers (by leveraging better Across many industries, technology real-time radio network information personalization through location discussions invariably touch upon the (for example, subscriber location and information and faster responsiveness) role and impact of AI on cell-load data) that can be used by or host/partner over-the-top (OTT) and competitiveness and jobs. Progress in applications and services to offer cloud infrastructure providers (for adjacent areas such as machine context-related services. example, AWS Greengrass). Through learning, image recognition, natural- these, new revenue opportunities can language processing, augmented WEC is not expected to reach mass- avail themselves to CSPs. However, reality and advanced prescriptive market adoption before 2025, as it is CSPs should first focus on the specific analytics serve to broaden the appeal necessary for mobile CSPs to needs of industry verticals, as the of AI across multiple functional areas. implement reliable SDN/NFV market is not yet mature. infrastructure in their production Major CSPs have noted this disruptive platform. Virtualization is needed “By 2020, over 50% of new trend and are exploring possibilities. before CSPs can deploy a distributed wireless edge computing AT&T is collaborating with Tech micro-data center topology required for deployments in CSP networks Mahindra on an open-source AI WEC and network slicing. will be driven by vertical- platform (Acumos). The potential of AI specific use cases.” is vast ranging: Major Chinese CSPs (such as China Unicom) are already planning to invest As WEC is still immature, business and • Sales activity. Sprint employs AI to in significant numbers of edge data cost models are difficult to determine qualify enterprise sales leads. There centers in conjunction with their 5G at this stage. The cost of an extensive are also opportunities to apply AI to deployment. Meanwhile, Deutsche deployment can quickly become optimize pricing. Telekom has formed an edge prohibitive; hence CSPs need to computing business unit called strategize on their go-to-market • AI-based network operations. SK MobiledgeX. CSPs such as AT&T, China approach. This may be uncomfortable Telecom and Telefónica are Unicom, NTT, SK Telecom and Verizon for CSPs that are risk-averse, but these employing AI to achieve better are already involved in the Mobile CSPs must overcome this tendency to operational efficiency. Central Office Re-architected as a seize the rare opportunity afforded by Datacenter (M-CORD) initiative — an technology disruption. • Customer care. Examples include alternative approach that will deliver Vodafone’s TOBi (an AI chatbot similar benefits as WEC. Action Plan for CSPs integrated to its webchat system) and Telefónica’s push for customer Impact on CSPs • Commence the WEC journey in a self-service with Aura (an AI-based scalable manner; attacking specific, voice recognition system). Churn Over the past few years, many CSPs well-defined use cases with a reduction can be a positive (including large, global ones) have contained area of operations first outcome stemming from improved found it hard to compete with cloud (for example, oil and gas, mining, customer experience. infrastructure providers such as utilities and stadiums). Prioritize Amazon Web Services (AWS), Microsoft use cases or applications that • Virtual assistants. Orange’s and Google. With WEC, CSPs can require real-time control and multiservice home virtual assistant, attempt to reclaim lost ground. CSPs low-latency requirements (for Djingo, allows customers to better can take advantage of its extensive example, remote control of manage services. network presence to deliver flexibility processes and video optimization). and better responsiveness to emerging Impact on CSPs delays can cause a CSP to fall across many functional areas such as behind quickly. sales, marketing, network operations, It is still difficult to evaluate the returns maintenance, customer care and on investment as AI and associated • Focus first on AI projects that have human resources. technologies are still evolving. Gartner high impact, high visibility and expects that it will take CSPs easily measurable outcomes, as the These CSPs will be better positioned to approximately three to five years to technology is still immature today. compete with over-the-top (OTT) reap reasonable benefits from AI. This These include network planning, service providers and cloud-based CSPs is because many processes need to be trouble ticketing and contact center on a more equal footing. substantially re-engineered and operations. sufficiently large, good quality datasets Impact on CSPs are required to train the AI application. • Establish a central team for AI The right talent also needs to be services development to reduce For this to happen, many CSPs need to acquired. These challenges should not duplication of effort. Maximize overcome cultural challenges since not deter CSPs since significant competitive returns on investment by every employee is comfortable with advantages can be gained from AI. facilitating reuse of services already technology-driven changes. Many will developed through application be concerned over job security. “By 2022, 25% of newly programming interfaces. Restructuring the workforce will be automated CSP processes will necessary, but highly unsettling.3 employ machine learning.” • Strike the right balance between Earlier, we predicted that by 2020, AI-based automation and human changing market dynamics would drive A well-executed AI strategy promises to involvement as AI technology is network-based CSPs in developed deliver improved operational insufficiently mature for a zero- markets to reduce their traditional effectiveness, cost-efficiencies and an touch operating environment. telecom workforce by between 15% enhanced customer experience. Such a and 20%.4 Gartner expects more CSP will be able to further distance restructuring through 2023 due to itself from its fellow CSP competitors. Trend 5: The Ability of the increased automation and adoption of Examples include better Workforce to Assimilate New new technologies. personalization of advertising/ Technologies and Digital promotional material and reduction in Processes Will Determine customer care calls through effective CSPs’ Future Prospects “By 2023, over 35% of roles in preventive maintenance and better CSP organizations will either Throughout the period examined in this be new or redesigned.” anticipation of problems. research, the technologies cited previously — together with CSPs such as AT&T and Orange Monetization opportunities can arise automation, augmented reality, Business Services are already from combining different technologies prescriptive analytics and virtual addressing their workforce to create end-to-end solutions. For personal assistants — will continue to transformation challenges. It will be example, there are potential synergies mature and be integrated into multitudes vital for CSPs to manage the pace of to be gained from integrating various of functions/processes within CSP change so that it does not overwhelm technologies such as AI, cloud organizations. There are abundant their workforce. computing, the Internet of Things (IoT) opportunities to improve the quality of and automation as a holistic solution, decision making, enhance operational New roles (for example, software aimed at transforming enterprise efficiency and deliver superior customer programmers, data scientists and operations. CSPs can also provide highly experience. These technologies are domain experts in AI) and redesigning reliable, secure networks (and WEC to central to CSPs’ transformation into digital of current jobs are required. However, meet the ultra-low latency requirements service providers. many CSPs lack the new skill sets and of some AI inference functions) to competencies. In the past, CSPs had enable critical use cases such as robotics Highly adaptable and agile CSPs will gravitated toward partners to address or autonomous vehicles. Ambitious and quickly assimilate these technologies similar situations, but now this cannot capable CSPs can build their own AI and convert their mastery over them be an effective, long-term solution as platforms and establish an ecosystem into a new currency for competitive the missing capabilities are core/ around it to drive innovative applications advantage. Such CSPs will have strategic in nature. CSPs without the and services. developed digital dexterity; and Gartner new competencies may eventually find foresees that they will quickly evolve themselves marginalized. Having the Action Plan for CSPs into highly effective, data-driven appropriate organizational structure organizations. Their workforce will (for example, cross-functional • Start the AI journey now, as the interface and interact with machines in governance and executive sponsorship) technology is evolving rapidly and truly transformative and novel ways are also vital ingredients for success. the learning curve can be steep — Many CSPs need to attract new but Acronym Key and Glossary Terms scarce and expensive talent. Competition for them is intense — a 5G fifth generation majority can be expected to be partial toward born-digital companies or AI artificial intelligence dynamic, global digital giants (such as Amazon, Apple, Facebook and Google) API application programming interface as opposed to CSPs that are still closely associated with traditional telecom AWS Amazon Web Services services. CIO chief information officer Action Plan for CSPs CSP communications service provider • Rejuvenate the workforce by reskilling and retooling existing CTO chief technology officer employees. Ensure that line managers understand the need for dNOS disaggregated network operating system (AT&T) change so that they can communicate it on to the rank and IoT Internet of Things file. Revise incentives and key performance indicators to drive MANO management and orchestration change. M-CORD Mobile Central Office Re-architected as a Datacenter • Seek out external talent that is able to link technologies to their MEF Metro Ethernet Forum business implications. These abilities will help CSPs to identify NFV network function virtualization promising, new market opportunities. OCP Open Compute Project • Attract talent that would otherwise gravitate toward born-digital ONAP Open Network Automation Platform companies or digital giants by revamping the traditional image of OpenLSO Open Lifecycle Service Orchestration the CSP and introducing modern digital workplace practices. OSM Open Source MANO
Vendors to Watch OT operational technology
The following vendors are worth OTT over-the-top tracking for the following reasons: RAN radio access network • Adoption of open-source software: AT&T, Orange, Telefónica SDN software-defined networking
• Network virtualization initiatives: SD-WAN software-defined wide-area network AT&T, NTT Communications, Orange Business Services TIP Telecom Infra Project
• Early movers in edge computing: vCPE virtual customer premises equipment China Telecom, China Unicom, Deutsche Telekom VNF virtual network function • Adoption of AI: AT&T, SK Telecom, WEC wireless edge computing Sprint, Telefónica, Vodafone
• Transformation of the workforce: AT&T, Orange Business Services Evidence Note 1
This analysis is based on analyst Definition of Network-Based CSP discussions and numerous dialogues A network-based CSP is defined as a legacy telecom carrier that owns extensive with major industry participants. It is network infrastructure to provide communications services. Further details can be also based on Gartner observations of found in “Market Definitions and Methodology Guide: Communications Service market trends in telecom and adjacent Provider Operational Technology.” industries.
1 Initiatives like Open Network Automation Platform (ONAP) and Open Source MANO (OSM) are addressing Note 2 platforms for network management Definition of Cloud-Based CSP while OpenStack addresses infrastructure management. The Metro A cloud-based CSP is defined as a CSP that relies mainly on the cloud or internet to Ethernet Forum (MEF)’s Open Lifecycle provide communications services. They are often disruptive to network-based Service Orchestration (OpenLSO) CSPs. Further details can be found in “Market Definitions and Methodology Guide: covers open reference architecture. The Communications Service Provider Operational Technology.” Open Compute Project (OCP) and Telecom Infra Project (TIP) go beyond the application layers into access, backhaul, core and management. In Source: Gartner Research Note G00349638, King Yew Foong, Amresh Nandan, November 2017, AT&T released its Sylvain Fabre, Charlotte Patrick, 28 March 2018 open architecture vision for a disaggregated network operating system (dNOS). In addition, the Linux Foundation is working with AT&T and Tech Mahindra on Acumos — an open-source artificial intelligence (AI) development platform.
2 “Start Moving Data Management Capabilities Toward the Edge”
3 Examples include: D. Lepido, “Telecom Italia Is Considering 7,000 Job Cuts Over Three Years,” Bloomberg, 9 January 2018; “BT Sheds 4,000 Jobs and Lowers Guidance,” Financial Times, 11 May 2017; J. Anderson, “Layoffs Coming for Thousands of AT&T Employees,” Channel Partners, 2 January 2018; C. Donkin, “Telenor Slashes More Jobs, Continues Efficiency Drive,” Mobile World Live, 31 January 2018.
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