Enterprise technology providers need to help telecom companies adopt cloud platforms, a new IBM study suggests.
Unprecedented overgrowth as a result 5G should start around the middle of the decade, and to prepare, communications service providers need to make sure they have the right tracks to succeed, according to a new IBM study. These include business strategy, technological and operational processes and, of course, infrastructure.
Meeting user expectations more often requires integrating connectivity and computing closer to where the data resides and decisions, according to the study, the end of Communications Services as we know it.
LOOK: The introduction of Edge computing will grow by 2026; organizations are careful about adding 5G to the mix (TechRepublic Premium)
“The expansion of the related physical infrastructure, networking and software is expected to be so great that by the middle of the decade it will bring with it a whole new technological era to reduce costs to a level that makes mass deployment and hyper-expansion possible,” the study said. Then the “web cloud” follows the tradition that computers and cloud services are the third wave of digitalization.
This wave combines network and cloud functionality, connectivity and computing, feeds data-driven intelligence and automated decision-making into applications, forming the so-called “connectivity to network layers” of intelligent connectivity, according to the study.
Communication service providers need to adapt
The integration of connections and data processing close to the location of the data is key, but also the ability of service providers to adapt to change. A study of 500 telecommunications executives identified a small group (14%) of high-performance representatives who, according to IBM, were expected to cross the rest of the field with 5G, and edge counting.
59 percent of these high-level performers agreed that they need to be safe clouds artificial intelligence and automation, while half of the high – performance CSPs agreed to become strategic cloud platforms, confusing a diverse partner ecosystem.
LOOK: 5G: What does edge counting mean (free PDF) (TechRepublic)
“If the CSP is to thrive, most will need to develop new skills and defend themselves in new roles in value chains,” the study says. “The CSP should look for new ways to earn, except for interface measurement and data access, as these traditional base stations for CSP business models are likely to turn into products.”
In addition, 71% of telco executives who responded to the survey said the cloud service is a core technology that will help deliver results over the next two or three years, while 61% viewed 5G in the same way..
CSP has a lot to offer in a growing 5G-driven platform economy: experience, presence points, enterprise systems, unique data, and customer trust, according to research.
So-called efficient CSPs seem to value digital platforms, automation, new partner ecosystems and hybrid cloud”, according to the study.
Digital 5G is driving the economy to significant growth
By 2030, 5G-driven growth will drive the share of digital-driven economies to more than 50 percent of the global economy, an IBM report said. To achieve this, it must be set up by about the middle of the decade to support the exponential growth of physical infrastructure and mobile data traffic in a variety of uses to support “tens of trillions of dollars in economic activity.”
5G is designed to support a 100-fold increase in traffic capacity compared to 4G, but it requires higher frequency bands that do not travel to lower frequencies. As a result, this requires many small cells or low-power cellular radio head nodes with a relatively short range, the report states.
This is reflected in the global 5G infrastructure market, which is projected to grow from about $ 2 billion in 2019 to about $ 500 billion in 2027, including more than $ 200 billion in radio network technology, the report says.
CSPs have not yet focused on 5G
Another significant finding was that most service providers have not yet developed a 5G business case for 5G use cases. They need to assess “how they can become necessary to achieve the economic benefit of the platform for customers, themselves and the surrounding ecosystems by setting up forums responsible for adding value,” the report states.
Most of the respondent organizations “follow a conservative company-specific approach – waiting for evidence of demand before making investments,” the report said. “This may put many of them in their positions when demand for 5G explodes around 2024 or 2025.”
In two years, respondents reported that only 7% of services are uniquely possible with 5G features and 93% are improvements to existing 4G services, the report notes.
“Even after five years, respondents expect 5G to offer a unique opportunity for only 18 percent of services. Most providers have not yet developed a 5G business approach to 5G use cases. Only about half of respondents we have identified as effective have developed a business case for 5G use cases ( 49%), but that is twice as much as other CSPs. “
The report, on the other hand, states that effective Country Strategy Papers are preparing to be essential for value chains by focusing on four key actions:
- Thinking beyond connectivity
- Cautious advancement with hypercentral cloud partnerships
- Added value for partner ecosystems
- Preparing for a network hyper-scale using a hybrid cloud