Virtualization Technology News and Information
Accenture 2017 Predictions: Virtualization Brings Stiff Transformation Requirements for Communications Service Providers

VMblog Predictions 2017

Virtualization and Cloud executives share their predictions for 2017.  Read them in this 9th annual series exclusive.

Contributed by Amol Phadke, Managing Director at Accenture, Telecommunications

Virtualization Brings Stiff Transformation Requirements for Communications Service Providers

2017 and beyond is shaping up to be a big boom period for enterprises adopting network virtualization. Our research indicated that businesses are setting aside 20 to 30 percent of their IT budget to fund network virtualization services, and they are expecting communications service providers (CSPs) to deliver those services. This is both a big opportunity and challenge for CSPs as they transition their services to a software-defined network (SDN) model.  

On the plus side are the enormous revenue channels this opens up. CSPs can offer more services covering a larger expanse of their client's business, and in the process achieve cost and operational efficiencies that come with operating software-defined network services. Estimates say it can cut a third out of CAPEX and OPEX and triple the service agility of CSPs. The opportunities are ripe for the taking but the challenge for CSPs in 2017 will be laying the groundwork to offer virtualized services.

CSPs will need to undergo a major transformation of their network, services and people. When it comes to the actual network, CSPs will need to migrate their legacy setup - all their current products, customers and network - first to IP and then to SDN. They will have to do that across different network layers and overhaul their current OSS/BSS systems to properly bill for a new range of services rather than network products. CSPs will also have to manage a very large ecosystem of small suppliers instead of the handful that used to provide vertically integrated solutions. Regarding people, IT and network groups will need to coalesce into a single technology organization while upskilling engineers from hardware to software development.

The complexity of this digital transformation will require taking an ecosystem view as CSPs work with transformation partners to realign their business model to meet the demands of the next generation enterprise.  The sooner a CSP can rotate to the new, the bigger the slice they will get of the enterprise network market.


About the Author

Amol Phadke is a Managing Director responsible for Accenture's Global Network Virtualisation and transformation Offering as part of Network Practice within Accenture CMT operating unit. In this role he leads and manages global high end consulting teams that provide strategy, consulting, execution and transformation services to CXO clients in areas of Network economics, strategy, SDN/NFV, cloud, all IP and NGN platforms.

 Amol Phadke

Published Wednesday, October 19, 2016 7:04 AM by David Marshall
There are no comments for this post.
To post a comment, you must be a registered user. Registration is free and easy! Sign up now!
<October 2016>