5G Cloud Native Technology opens the door to a number of innovative and disruptive service offerings and operating models which create expanded business opportunities for Communication Service Providers (CSPs).
CSPs are exploring how to differentiate themselves in 5G while effectively monetizing new offerings for their consumer and enterprise customers. Here are three technology trends that will enable CSPs to expand their offerings to customers:
Cloud-native technology and APIs
Many CSPs have previously considered the cloud simply as a means of lifting and shifting workloads, or simply as the extension of a data center or infrastructure strategy. However, this is changing as early adopter CSPs explore using cloud native technology and cloud APIs to develop, test and launch services at a rate and scale not seen before.
As CSPs evaluate the cloud as a platform for achieving long-term growth and innovation, new advantages emerge. These include using the cloud as a way to leverage advanced technologies like Analytics, AI, and self-healing / self-adapting secure networks to improve services and optimize networks. This new mindset is key to creating more profitable and dynamic ecosystems and marketplaces.
When implementing a cloud-native approach, CSPs looking to create their own digital marketplaces must consider the following:
- Container usage, which includes services to orchestrate, schedule, network, deploy, instrument and maintain services on the cloud.
- Micro-services that are not just ‘smallish’ applications, but applications that require a different way of thinking about the service, how resources are used, how it’s maintained and how they work in a distributed environment.
- DevOps, which encompasses the shift in how software is developed, integrated and operated.
- Continuous Integration and Continuous Delivery (CI/CD), which goes beyond a cookbook and collection of scripts by building a pipeline that spans all aspects of creating and running a service, embracing automation at every step and strict governance – literally turning the business into code.
When embracing API-based cloud integrations, CSPs should look for API-enabled, zero-touch partnering, which makes it possible for business-to-business-to-end users (B2B2X) to participate in an ecosystem or marketplace in various ways. To further maximize the business potential of APIs, CPSs also need to consider API granularity, speed of adoption and the types and uses of various APIs.
Network slicing and SD-WAN
CSPs spend billions on mobile infrastructure to create the next ‘Gs’ only to see other digital innovators capture much of the value enabled by the CSP networks. However, 5G and subsequent generations can be different.
One revolutionary feature of 5G networks is network slicing, which uses specialization to meet service and industry-specific requirements in terms of network priority, geography, latency, security, data rates, quality of experience and other parameters. Similarly, SD-WAN technology provides the security, quality of experience and reliability needed to migrate enterprise applications to the cloud. Together, these two technologies create an integrated intelligent edge with an unprecedented ability to meet vertical industry demands.
This will enable CSPs to create and monetize new ecosystems, digital marketplaces and industry vertical offers using personalized, secure and dynamic networks. CSPs will be able manage billions of devices and sensors as more people and IoT devices connect, transact and communicate with each other.
Multi-cloud SaaS models
Initial 5G network deployments targeting enhanced mobile broadband and fixed-wireless access network slices for consumers are taking place within CSPs’ own data centers for reasons that include data sovereignty and regulation. However, future digital marketplaces and enterprise vertical use cases can be global and not have the same restrictions. This will allow CSPs to compete beyond the traditional business models. CSPs should consider using multi-cloud SaaS models.
In fact, the total cost of ownership (TCO) for a network slice-as-a-service could be two-to-three times less than if a CSP built the infrastructure themselves, according to a recent study by ABI networks and Oracle. For these reasons, CSPs will start subscribing to 5G network slices that are made securely and reliably available from partner clouds on a SaaS basis, with integrated applications and end-to-end on-demand infrastructure for specific industry verticals, marketplaces and ecosystems. This will drive accelerated revenue growth, greater operational efficiency, lower costs and enable more rapid service delivery for enterprise customers.
The operating model for the decade ahead
Bringing this all together is not trivial. It requires an agile cloud-based platform that CSPs and their enterprises customers can leverage. It also requires a deep understanding of service reliability and an awareness of the operational aspects of what the end-to-end solution will need. The platform should include cloud security and autonomous databases with integrated AI, ML and analytics capabilities to capture, store, analyze and monetize data.
Already, smart ecosystems and digital marketplaces are starting to flourish thanks to the scale and speed of the latest generation of cloud-native platforms and applications. Additional driving factors include advances in mobile networks, autonomous databases, AI and machine learning and real-time personalization. A strategic challenge for CSPs will be meeting the demands of digitally savvy consumers expecting personalized, intelligent and intuitive services delivered by these new business models.
Enterprise and consumer customers can benefit from CSPs evolving their customer experience systems into collaborative digital marketplace platforms. The integration of cloud, SD-WAN and 5G network slices to create unique ecosystem and marketplace offers enable new revenue opportunities. Adopting SaaS business and operational models further reduce costs to CSPs which enable them to share the rewards of updated communications and information sharing to meet new customer standards. By laying the groundwork now, CSPs can reap the rewards in the years ahead.
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