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Click to enlarge. IT services remained the largest enterprise segment in 1Q17 with combined revenue among bench-marked companies rising 4.7% year-to-year to $12.5 billion due to growth in IoT, cloud and security.[/caption]
HAMPTON, N.H. (July 21, 2017) — Carriers are aggressively investing in software-mediated network solutions, 5G and IoT to remain competitive as enterprises realize the benefits offered by these technologies over the next five years, according to Technology Business Research, Inc.’s (TBR) latest
Enterprise Operator Benchmark. Strategic data yielded the highest growth rate of benchmarked enterprise service segments in 1Q17, rising 6.6% year-to-year, spurred by demand for VPN, Ethernet and software-mediated network services such as SD-WAN. ”The main justification for investment in NFV and SDN by operators is the incremental revenue-generation opportunities and cost savings these technologies provide,” said TBR Analyst Steve Vachon. “Offering software-mediated network services is becoming a necessity for enterprise operators to maintain market share, as most benchmarked companies have either commercially launched or announced plans to offer SD-WAN services.” IT services remained the largest enterprise segment in 1Q17 with combined revenue among benchmarked companies rising 4.7% year-to-year to $12.5 billion due to growth in IoT, cloud and security. Pricing pressures, particularly in the U.S., have caused some carriers to move entirely from the IaaS market, such as Verizon divesting its remaining cloud business to IBM. Carriers including BT, CenturyLink and AT&T are becoming more willing to play a supportive role to pure plays such as Amazon Web Services, concentrating on augmenting broader hybrid IT environments by providing network connectivity, security and orchestration platforms instead of serving as the IaaS provider. The benchmark also examines key investment areas operators are targeting to enhance their enterprise portfolios including 5G, data centers and the deployment of IoT network technologies including LTE-M, NB-IoT and LoRa. Most carriers have begun prestandards 5G testing, and commercialized fixed wireless is expected to become available in 2018. Carriers are aggressively competing to gain high-band spectrum to support 5G, exemplified by Verizon nearly doubling AT&T’s initial bid to acquire Straight Path Communications. Early 5G use cases will focus on enhancing delivery for existing services such as internet and cloud while in the long term supporting emerging technologies such as augmented reality and virtual reality, and autonomous driving.
For additional information about this research or to arrange a one-on-one analyst briefing, please contact Dan Demers at +1 603.929.1166 or dan.demers@tbri.com. For more information please visit
www.tbri.com.
Click to enlarge. IT services remained the largest enterprise segment in 1Q17 with combined revenue among bench-marked companies rising 4.7% year-to-year to $12.5 billion due to growth in IoT, cloud and security.[/caption]
HAMPTON, N.H. (July 21, 2017) — Carriers are aggressively investing in software-mediated network solutions, 5G and IoT to remain competitive as enterprises realize the benefits offered by these technologies over the next five years, according to Technology Business Research, Inc.’s (TBR) latest
Enterprise Operator Benchmark. Strategic data yielded the highest growth rate of benchmarked enterprise service segments in 1Q17, rising 6.6% year-to-year, spurred by demand for VPN, Ethernet and software-mediated network services such as SD-WAN. ”The main justification for investment in NFV and SDN by operators is the incremental revenue-generation opportunities and cost savings these technologies provide,” said TBR Analyst Steve Vachon. “Offering software-mediated network services is becoming a necessity for enterprise operators to maintain market share, as most benchmarked companies have either commercially launched or announced plans to offer SD-WAN services.” IT services remained the largest enterprise segment in 1Q17 with combined revenue among benchmarked companies rising 4.7% year-to-year to $12.5 billion due to growth in IoT, cloud and security. Pricing pressures, particularly in the U.S., have caused some carriers to move entirely from the IaaS market, such as Verizon divesting its remaining cloud business to IBM. Carriers including BT, CenturyLink and AT&T are becoming more willing to play a supportive role to pure plays such as Amazon Web Services, concentrating on augmenting broader hybrid IT environments by providing network connectivity, security and orchestration platforms instead of serving as the IaaS provider. The benchmark also examines key investment areas operators are targeting to enhance their enterprise portfolios including 5G, data centers and the deployment of IoT network technologies including LTE-M, NB-IoT and LoRa. Most carriers have begun prestandards 5G testing, and commercialized fixed wireless is expected to become available in 2018. Carriers are aggressively competing to gain high-band spectrum to support 5G, exemplified by Verizon nearly doubling AT&T’s initial bid to acquire Straight Path Communications. Early 5G use cases will focus on enhancing delivery for existing services such as internet and cloud while in the long term supporting emerging technologies such as augmented reality and virtual reality, and autonomous driving.
For additional information about this research or to arrange a one-on-one analyst briefing, please contact Dan Demers at +1 603.929.1166 or dan.demers@tbri.com. For more information please visit
www.tbri.com.
