Showing posts with label providers. Show all posts
Showing posts with label providers. Show all posts
Thursday, 17 August 2017
How Many Service Providers Can Escape Dumb Pipe Status
How Many Service Providers Can Escape Dumb Pipe Status
One universally hears service provider executives arguing they want to avoid becoming �dumb pipe� connectivity providers. What is not so clear is how many service provider entities will actually be able to do so in a significant way.
For many--perhaps most--suppliers, being an efficient dumb pipe provider is possibly the only viable path forward. The problem is that most proposed new services and applications require scale.
Whether it is entertainment video, mobile banking and payments, connected car, connected health or other Internet of Things apps, viable suppliers must achieve scale. Almost by definition, most smaller providers will be unable to do so.
That will mean an industry dominated by http://liveeconcerts.blogspot.com /2016/10/by-2025-as-few-as-110-telecom-service.html" style="text-decoration: none;">10 global service providers, some predict. Those handful of firms can become branded suppliers of applications. Smaller providers will struggle to reduce costs enough to remain viable primarily as suppliers of access services.
In other words, the advice to �move up the stack� will be viable for a relative handful of firms. Most service providers will focus primarily on access. In the Internet era, that means being suppliers of �dumb pipe� Internet access.
Moving �up the stack� will be necessary and possible for the webscale global giants. Beyond some limited scenarios, smaller providers will lack the scale to create viable new application or services.
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Monday, 14 August 2017
Are Webscale App Providers Shaping Core Telecom Platform Trends
Are Webscale App Providers Shaping Core Telecom Platform Trends
Webscale Internet companies (Google, Apple, Facebook, Microsoft and Amazon) now are exerting a �markedly increased influence� on markets for communications service. Analysts at Heavy Reading now think the webscale players also increasingly are shaping the market for networking hardware, software and services.
That will be a contentious point of view, even if many telecom industry execs and others think that is true, to some extent.
Google and Facebook are developing new backhaul and access platforms. Google Fiber does buy industry-standard optical access networks as well.
But Facebook mostly is looking at open source platforms that can be manufactured by supplied by industry suppliers.
Clearly, there is impact in terms of buying behavior in the case of Google Fiber, and development potential in the open source efforts by Facebook.
At least some telecom industry professionals believe the webscale providers are "leading in networking innovation"; are "increasingly calling the shots"; increasingly "building out their own telecom infrastructure" and that "its a matter of time before one of these guys buys one of the big CSPs (communications service providers).�
A Heavy Reading analyst team interviewed more than a dozen leading network infrastructure professionals at leading CSPs at the CTO, VP and director level, as well as more than 25 senior individuals in network equipment vendors at CTO, VP and director level; plus several leaders in key telecom industry associations, standards bodies and other specialist consultancies; and some of the WICs themselves.
The primary and secondary research was complemented by a Heavy Reading online survey, generating responses from 82 qualified respondents in network equipment vendors and 57 from qualified respondents in CSPs.
Keep in mind that about half the 82 vendor respondents came from individuals from one vendor company.
Around half came from vendors from whom two or more (but no more than four) respondents supplied responses. Those companies from which two or more respondents participated include ADVA, Broadsoft, Casa Systems, Cisco Systems, Ericsson, F5, Huawei, HP, IBM, Infinera, Juniper Networks, Nokia, NetScout, Vasona Networks and Radisys.
As you might expect, the online respondents identified Google as the webscale player posing the greatest threat to communications service providers.
Source: Heavy Reading
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