Bringing Enterprise Services to Market Faster: The NaaS Approach
Only NaaS strategies with BSS, OSS and service orchestration alignment will vCPE, SD-WAN and other enterprise service revenue opportunities become viable.
The rapid evolution of virtualization, software control, cloud and advanced analytics is playing a significant role in helping the telecom industry drive revenue, increase customer responsiveness and build a strong strategy around business and customer centricity. Operators, their partners and customers now have an opportunity to work together and launch innovative, game-changing business services, such as network-as-a-service (NaaS) offerings.
To date, enterprise services only represent a small percentage of total service provider revenue. A recent joint webinar by Netcracker and TM Forum titled “Network as a Service: Addressing the Full Enterprise Opportunity” highlighted the statistic that 7 of 10 service providers expect 50 percent or more of their revenues to come from enterprise services within the next 10 years. This is a substantial revenue increase from an area that typically only yields about 5 to 10 percent of revenues today. By 2020, enterprise services may represent upwards of $400B in revenue. While that value is expected to increase, it won’t grow rapidly without the launch of new virtual services. This is where network as a service (NaaS) can help, as it can accelerate and enhance service rollouts.
The ultimate goal for most transitions to NFV-based services is based on both economic and performance outcomes. Any operator that can provide carrier-grade, cloud-native, multi-tenant, elastic and agile services with guaranteed quality-of-service (QoS) levels will be best positioned to capitalize on expansions into the enterprise. However, the successful launch of low-hanging fruit like vCPE and SD-WAN services requires alignment with core technical processes. Without properly aligning BSS/OSS and service orchestration, it will be difficult to create value and differentiate without creating more silos. Similarly, service providers must consider the most appropriate cloud model that best maps to their business and embrace open APIs to facilitate that integration.
To learn more about how virtualization is driving the potential for new enterprises services, click here to access our recent webinar, to see the results of TM Forum’s survey on CSPs and the B2B market and to learn about Netcracker’s approach to NaaS and how we have delivered solutions to Tier-1 service providers.