Showing posts with label webscale. Show all posts
Showing posts with label webscale. Show all posts
Monday, 25 September 2017
Webscale Telcos
Webscale Telcos
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.
That implies rather significant consolidation. It might also mean significant service provider http://liveeconcerts.blogspot.com /2016/08/spectrum-fees-high-incremental-capex.html?q=nationalization&view=classic" style="text-decoration: none;">failures.
Few tier-one service providers http://liveeconcerts.blogspot.com /2016/09/tier-one-telcos-do-not-recover-their.html?q=cost+of+capital" style="text-decoration: none;">recover cost of capital, studies have found. That is one way of suggesting that capital borrowed to provide telecom services actually does not make enough money to repay the loans.
That has clear strategy implications. Only a handful of firms will credibly have a shot at remaining among the 10 or so global providers. For as many as 100 other firms, strategy will consist in remaining the best-possible local partner.
Industry or firm strategy in a new or growing market is fundamentally different from strategy in a declining market. You can draw your own conclusions about which fundamental paradigm is most relevant.
But some conclusions are simple enough. In a young, growing industry, a firm or industry wants to grab new customers as fast as possible. In a declining industry, a firm or industry wants to limit the rate of decline.
Firms in young industries need to focus on growth within the new business. Firms in declining industries must harvest revenue while they search for new businesses to create.
Beyond those key frameworks, the range of potential strategies has increased, compared to options 100 years ago, when telecom was universally a regulated monopoly.
One clear outcome of a massive global wave of asset privatization, deregulation and the shift to Internet as the framework for applications is that service providers are becoming more different from each other, as firms are free to pursue a nearly unlimited number of paths.
So there now likely is no universal �best� strategy for any telco, tier-one, regional or local. Nor, it might appear, will most service providers emerge as major suppliers of new apps and 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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