[New Video] The Case for Virtualized Transport or Transport NFV
Communications service providers (CSPs) have long been losing revenue as over the top (OTT) solutions gain favor in the business world. However, the issue isn’t so much about technology—it’s about revenue streams. If you want to keep OTTs from chipping away at your revenue, you need new services and new revenue streams.
ECI’s CTO, Hayim Porat, recently delivered a presentation: The Case for Virtualized Transport. This lecture provided CSPs with a stronger vision for the future of telecom. Watch the video here and learn more about how virtualized transport can help CSPs redefine their businesses:
The New CSP Opportunity: Edge Cloud Computing Services
OTTs have taken advantage of the centralized cloud computing market which is ideal for low transaction rate/low latency applications such as email, video, storage or other central cloud computing applications. Directly competing with the OTTs is often a losing battle for CSPs. Rather, ECI suggests that CSPs should look for opportunities which offer them unique added value. For example, the opportunities which lie at the network edge.
Edge cloud computing, where the processing happens closer to the customer premise, offers speed and performance advantages for applications with high transactional, low latency requirements. Moreover, this is where CSP’s have a distinct advantage over their OTT counterparts. CSPs can take advantage of the fact that their network assets are physically closer to their customers to offer services that cannot be properly implemented in standard cloud environments. For example, IoT and M2M applications are required to process a vast amount of data in real-time. The amount of information that has to be analyzed quickly to enable smart city and smart grid solutions is astounding. By strengthening their network edge, CSPs can offer unique value added services for these types of low latency, high-transaction applications. Thereby enhancing their offering to their customer base in sectors such as manufacturing, retail, healthcare, automotive and utilities.
The revenue streams associated with these types of applications are expected to explode in value over the coming years. By 2020, the market for IoT solutions will be worth $1.7 trillion, smart city solutions will hit $1.5 trillion and machine-to-machine applications will reach $1.2 trillion. If you want to capitalize on your existing customer base, these markets offer tremendous opportunity.
The only question is—how can you quickly claim market share in the edge cloud computing revolution?
Transport NFV —The Answer to Edge Cloud Services
Traditional transport networks are closed, built only to deliver traffic from Point A to Point B. Your legacy network likely has long provisioning cycles, hard-wired intelligence and lacks innovation necessary for edge cloud computing. Transport networks must change to support new revenue streams.
In Hayim Porat’s presentation, he discusses the three keys to revamping the transport layer—openness, optimization for cost-performance and implementing new services through NFV. What does that leave you with? A transport NFV that enables you to enhance quality of experience and differentiate yourself in a crowded field of service providers.
Take a Page Out of the OTT Playbook: Virtualize and Become a More ELASTIC CSP
Customers enjoy OTT solutions because they come at a lower cost, because of the OTT’s cost structure. While CSPs cannot change their own cost structures overnight, there is no reason you can’t provide unique services which offer distinctive advantages and discover new revenue streams. It just takes a bit of reinvention.
Listen to Hayim Porat’s presentation for a more in-depth look at how you can implement Transport NFV and how it can benefits your business. It’s time for you to become more ELASTIC and take control of your network in real time, introduce new services and innovations quickly and operate seamlessly in multi-vendor environments.
Do you still have questions about how to fully monetize your transport network? Leave a comment and we’ll tackle them below.