Telecom Transformation Trends: 90% of Service Providers Say Cloud Transformation is Critical

Nine out of 10 communications service providers feel network cloud transformation is critical to their survival.

There are four reasons for this belief, according to a study conducted by MeriTalk and commissioned by Dell Technologies: it will improve customer experiences, strengthen cybersecurity, allow integration of AI, and differentiate their networks.

Providers’ will to transform their networks clearly exists. The means to do so may be lacking, however.

The survey of 450 telecom decision-makers from North America, Europe and Asia/Pacific found that 96% of CSPs think “their network transformation vision is lagging.” The top challenges causing the delays are the time needed to upgrade, performance/reliability concerns, and security concerns.

Other highlights from the report:

· Eighty-eight percent of providers agree that open network architectures are necessary to be a best-in-class provider — but only 22% have an open architecture strategy today.

· Half describe their approach to legacy transformation over the past three years as “aggressive.”

· Eighty-three percent say monetizing IoT services is a key focus for their business strategy, but 55% say their industry is not adapting fast enough to meet the demands of the edge.

· The report offered a North American snapshot: 61% of respondents describe their approach to transformation over the past three years as aggressive and 78% of respondents feel that they are struggling to keep pace with rapidly evolving customer needs.

· Almost all North American providers — 97% — feel that open network architecture is necessary to be a best-in-class provider. Respondents were asked to characterize what percentage of their telecom technology is excellent. Over a third (37%) said security was excellent, 35% said so for performance, 39% for flexibility and 35% for the ability to support innovation.

· North American respondents rated security concerns, time needed to upgrade, and lack of trust in new technology — in that order — as the top three constraints other than budget to offering “the ideal network.”

· When asked which technologies will have the greatest impact on the telecom industry in the next five years, North American respondents cited 5G and Edge (61%), automation and AI (58%), IoT integration (53%), and fiber network expansion (37%).


The First Step Starts with Finley… and a FREE Consultation!

WP Twitter Auto Publish Powered By :