Historically, some communication service providers (CSPs) outsource network operations, maintenance, and service to gain from the Managed Service Providers’ economies of scale. With new technologies on the horizon, many CSPs will find additional reasons for Managed Services. ABI Research finds the new trend will be for CSPs to adopt Managed X-as-a-Service developments, or services delivered via a cloud model, which accelerate time-to-profit and minimize capital expenses for their transition into Digital Service Providers.
“X-as-a-Service developments are seen as the next-generation method to deliver new cloud-based services and improve quality of service and availability for customers,” says Sabir Rafiq, Research Analyst at ABI Research. “This will enable operators to provide services faster and avoid any upfront costs to install services on site.”
While Ericsson, Huawei, Nokia, and ZTE dominate the US$ 13 billion telecom managed service market, ABI Research expects the market to accelerate as operators evolve to an agile IT footing. This could lead to an increase in total managed services revenues, service innovations, and customer experience management as vendors develop X-as-a-Service offerings.
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