Skip to main content

Legacy Telecom Market will Transition to Web-Scale

​Worldwide traffic on 3G and 4G mobile communication networks continues to reach new highs as operators strive to satisfy the insatiable craving for broadband access to the Mobile Internet.

Around the globe, satisfying this demand -- by expanding network capacity -- will push mobile packet core spending to over $18 billion through 2019.

Though much of the telecom market experienced a 1Q 2014 seasonal dip, mobile packet core expansion continues with just-in-time infrastructure deployment.

First mover developed markets continue to lead, and now the Rest of the World demands additional capacity as network operators scale-up with the demand.

Mobile network operators must make their network investment choices to meet this never-before experienced growth -- and have a good grasp of the growing demand in the foreseeable future.

"Operators closely manage their CapEx and OpEx with a sharp eye on the top line," says Joe Hoffman, practice director at ABI Research.

But while network functions virtualization (NFV) gains momentum, current business needs require continued investment in the mobile packet core, likely utilizing the legacy technologies.

According to ABI's assessment, continued advances in semiconductor technology -- as they're manifested with commercial IT scale -- will regularly deliver a 20 to 30 percent cost performance improvement.

Software defined networking (SDN) combined with optimization from NFV capabilities brings new WebScale benefits and other much needed advantages to the telecom service provider community.

Furthermore, the rapid transition to open source software -- plus guidance via the OSS vendor consulting and technical services -- will enable this next transition to occur much sooner than originally anticipated.

In its research, ABI found that even with the increased mobile internet traffic growth, traditional packet core spending will taper just as WebScale utilization takes hold and starts to deliver results.

Following the proof of concept tests and beta deployments, the widespread adoption of open source hardware and software will quickly gain momentum -- that's the current forecast.

Popular posts from this blog

How to Drive Value Creation from Digital Business

Across the globe, many forward-thinking CEOs and CFOs continue to fund business technology investments that enable meaningful and substantive digital transformations, ahead of their industry peer group. That's why CIOs and other IT leaders must now accelerate the quest for value creation and drive digital growth from those ongoing investments, according to the latest market study by Gartner. "The pressure on CIOs to deliver digital dividends is higher than ever," said Daniel Sanchez-Reina, VP Analyst at Gartner . "CEOs and boards anticipated that investments in digital assets, channels, and digital business capabilities would accelerate growth beyond what was previously possible." Digital Business Market Development   CIOs expect IT budgets to increase 5.1 percent on average in 2023 -- that's lower than the projected 6.5 percent global economy inflation rate. A Gartner survey analysis revealed several ways in which CIOs can deliver "digital dividends&qu

Digital Transformation Investment at $3.4 Trillion

Business technology leadership matters. Across the globe, more leaders have been pursuing bold Digital Transformation (DX) initiatives with the goal of creating new sources of business value through digital products, services, and experiences. As an additional benefit, the COVID-19 pandemic revealed that digital transformation efforts improve an organization's resilience against global market disruptions. Global DX investment is forecast to reach $3.4 trillion in 2026 with a five-year compound annual growth rate (CAGR) of 16.3 percent, according to the latest worldwide market study by International Data Corporation (IDC). Digital Transformation Market Development "Despite strong headwinds from global supply chain constraints, soaring inflation, political uncertainty, and an impending recession, investment in digital transformation is expected to remain robust," said Craig Simpson, senior research manager at IDC . The benefits of investing in DX technology -- including aut

Artificial Intelligence for National Border Security

National border protection agencies are under pressure to provide the highest level of security in the face of growing threats, such as increasing illegal migration and international terrorism. Now, government agencies are embracing advanced border security technologies to aid in effectively and reliably securing national borders. These solutions look to detect and identify potential threats and prevent them from escalating to a point that may jeopardize security. Security Surveillance Market Development Traditional border security patrols and Closed-circuit Television (CCTV) surveillance systems aren't adequate protection, and agencies must increasingly deploy new solutions to stay ahead of criminals and other potential threats to ensure the safety of a country’s borders. According to the latest market study by Juniper Research, the value of the border security technology market will exceed $70 billion globally in 2027 -- that's rising from $48 billion in 2022. Growing by 47 p