Network Slicing: A Potential US$66 Billion Opportunity for MSPs

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16 Aug 2018

Network slicing, a promising new vehicle that will become a fundamental 5G technology, is paving the way for the creation of new use cases characterized by varied experiences and personalized service level agreements. Network slicing affords the opportunity to be agile and to capture revenue that could otherwise be overlooked, but the utility in question warrants interoperability across multiple technology domains.

According to ABI Research, a market-foresight advisory firm providing strategic guidance on the most compelling transformative technologies, network slicing stands to create approximately US$66 billion in value coming from the ever-increasing digital requirements of industry verticals.

 “Telcos (aka Mobile Service Providers or MSPs) are increasingly seeking to create services that are more differentiated and tap into the growth engine of the future, intrinsically linked to a superior experience for end consumers, and operational simplicity for enterprises and end verticals,” commented Don Alusha, Senior Analyst at ABI Research.

“Network slicing revenues will eventually be on an upward trajectory, driven by digital, cloud, and security requirements of multiple industry verticals, particularly for the trio of manufacturing, logistics, and automotive. Realizing the full revenue potential is dependent on essential slicing infrastructure from vendors, and pertinent applications delivered by MSPs.”

There are some significant PoCs and pertinent commercial activities in the market especially from BT and Swisscom, and more are expected during 2018 and beyond. “This is encouraging and lays the foundation for widespread commercial deployments even before 5G diffusion,” noted Alusha. There are specific vendors in the market who are addressing end-to-end slicing scenarios that pull together a number of technologies, Nokia and Ericsson chief among them.”

At a broad industry level, significant work is taking place to institute best practices around multiple standards and technologies that may need harmonization to enable end to end slice implementations.

 “MSPs and vendors are pursuing different models of collaboration with vertical markets and growth for each market will be driven by premium services, revenue potential and ability to address existing challenges in the short and medium term,” concluded Alusha. “Vendors should aim to eliminate complexity through automation and ‘deep’ orchestration, a feat that calls for close collaboration with standard bodies to standardize and achieve alignment apt for commercial deployments and ecosystem integration.”

These findings are from ABI Research’s Network Slicing: Commercial Analysis and Enabling Technologies report. This report is part of the company’s  Telco’s Digitization research service, which includes research, data, and Executive Foresights.

About ABI Research

ABI Research provides strategic guidance for visionaries needing market foresight on the most compelling transformative technologies, which reshape workforces, identify holes in a market, create new business models and drive new revenue streams. ABI’s own research visionaries take stances early on those technologies, publishing groundbreaking studies often years ahead of other technology advisory firms. ABI analysts deliver their conclusions and recommendations in easily and quickly absorbed formats to ensure proper context. Our analysts strategically guide visionaries to take action now and inspire their business to realize a bigger picture. For more information about ABI Research’s forecasting, consulting and teardown services, visionaries can contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.

 

About ABI Research

ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.

ABI Research 是一家全球性的技术情报公司,拥有得天独厚的优势,充当终端市场公司和技术解决方案提供商之间的桥梁,通过提供独家研究和专业性指导,推动成功的技术实施和提供经证明可吸引和留住客户的战略,无缝连接这两大主体。

For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.

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