By: Mike Vannest
The questions for Communications Service Providers (CSPs) and Data Center Operators is: “what are their enterprise customers going to want next?” And, it’s a crucial question to ask, even if they themselves don’t know the answer yet.
At a high level, we know enterprise customers generally want operational efficiencies, lower costs, and greater agility to consume, deploy, performance-tune, and manage IT resources.
Answering the question completely is impossible, because no one knows for sure. Enterprises are constantly changing organisms with differences from company to company in every use case. It’s called differentiation. Therefore, we can’t provide everything enterprises need out of the box, but we CAN do a much better job of giving them access to everything they might need from one portal, allowing them to gain operational efficiencies, lower costs and greater agility to consume, deploy, performance-tune and manage IT their resources.
Who is going to be first to put it all together, bundle it up and make it easy to use? It’s a brave new world for CSPs to survive in outpacing technology year over year. Emerging connected technology such as the Internet of Things (IoT) has placed additional strain on network infrastructure and driven demand for faster data, more bandwidth, better uptime and a more reactive network. CSPs have their hands full, but if they don’t look to the future, they will be left behind.
However, as Fidelity noted, despite growing network usage figures, telecom profits haven’t necessarily increased to go along with higher user demand. With telecom network services being increasingly commoditized, providers need to find new sources of revenue to maintain their profitability and feed enterprise appetite for advanced network features, more flexibility, and a more satisfying overall user experience. But what if network providers began to offer on-demand services? I may not want to buy network capacity, firewalls, load balancers, and people to design, manage and build it all. Maybe I’d rather just buy connectivity where I need it, know it will be there when I want it, and be confident that it will be performant and secure.
In short, these companies need to stop being just telecom service providers and become digital service providers.