DataCenterNews Asia logo
Specialist data center news for Asia
Story image

CSPs need to shift their 5G strategy if they want to keep up

By Catherine Knowles
Wed 6 May 2020
FYI, this story is more than a year old

Communications Service Providers (CSPs) are required to change their strategy if they hope to see a return on 5G investments, according to a new report released by Bearing Point/Beyond in collaboration with Omdia.

According to the study, how CSPs approach the market and their ability to engage with 5G enterprise projects will be the difference between success and failure.

CSPs must work with partners to focus not only on selling communications solutions but how to solve enterprise business problems.

The report highlights that 72.8% of CSPs believe the majority of 5G revenue will come from B2B, B2B2X or Government/smart city projects.

In fact, prior research by Bearing Point/Beyond showed that CSPs expect a 15% increase in current revenues from B2B 5G services.

However, CSPs are already being cut out of strategic engagement and solution building with enterprise partners. In 40% of enterprise 5G deals signed CSPs were the secondary supplier, 32% were led by enterprises, and only 21% were led by CSPs.

The research shows that only one in five early enterprise 5G deals are CSP-led, highlighting that the way CSPs want to sell doesn’t match the way that businesses want to buy.

Furthermore, in certain industries such as automotive, connectivity is being provided by other suppliers and CSPs aren’t being considered.

The report states that buying behaviour trends are driven by the fact that businesses are wanting to buy complete solutions that help to solve business problems, as opposed to buying individual technology solutions.

CSPs will find success if they are able to turn their focus to delivering technology-first solutions to business solutions that are vertical-specific, realising 5Gs value through industry specific processes, supply chains, partnerships, and applications.

When it comes to industries, the research shows that manufacturing, transport, utilities and energy/mining sectors account for nearly 80% of early enterprise 5G deals.

Omdia research vice president of Service Provider & Communications Evan Kirchheimer says, “CSPs will only realise value from 5G if they can identify, partner, codevelop, implement, and run a proposition with application-specific and industry-specific specialists.

“CSPs that can orchestrate such a complex web of relationships will be capable of capturing a greater share of the market and will not be relegated to being one of many connectivity providers competing solely on price.”

Bearing Point/Beyond CEO Angus Ward says, “This is a multi-billion-dollar opportunity that CSPs need to address fast and requires CSPs to collaborate with enterprises and SMBs to better understand their reality.”

Omdia’s principal analyst and practice leader of CSPs Europe, Dario Talmesio, echoes this sentiment saying, “The promise of enterprise 5G is there for the taking, but CSPs must realise they will need to master ecosystem orchestration, including joint go-to-market with vendors and cocreation with customers.”

The research also revealed the impact of COVID-19 on the 5G market, finding that if anything this will encourage enterprises to develop and invest in their 5G strategy.

For instance, the report finds that 5G investment in China is already recovering because the country recognises the importance of accelerating the digitalisation of industries to guard against future risk.

Omdia expects this trend to unfold globally as COVID-19 makes digitising the physical, enabling a work-anywhere economy and mitigating risk in supply chains through an ecosystem play more relevant than ever.

The report concludes that in order for CSPs to truly capitalise on 5G opportunities they must ‘be brave’, embracing platform-based business models and orchestrating partner ecosystems to meet specific enterprise demands.

Ward says, “CSPs have to embrace platform-based business models and orchestrate partner ecosystems to meet specific enterprise demands.

"This requires a change in mindset, experimenting with business models, accelerating testing and monetising speed to test and monetise new offerings that are co-created with ecosystem of partners and underpinned by the right IT platform to support these new ways of working.”

He says, “Fundamentally, CSPs must become 5G ecosystem orchestrators. That's the only way they can hope to meet enterprise business needs and re-integrate themselves into enterprise 5G value-chain as the world emerges from the COVID-19 pandemic.”

Related stories
Top stories
Story image
Employment
Tech job moves - Forcepoint, Malwarebytes, SolarWinds & VMware
We round up all job appointments from May 13-20, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Sustainability
Intel unveils new investments for data center sustainability
Intel has announced two new investments, continuing its efforts to create more sustainable data center technology.
Story image
Digital Transformation
The Huawei APAC conference kicks off with digital transformation
More than 1500 people from across APAC have gathered for the Huawei APAC Digital Innovation Congress to explore the future of digital innovation.
Story image
Sustainability
Legrand unveils Nexpand, a data center cabinet platform
Legrand has unveiled a new data center cabinet platform, Nexpand, to offer the necessary scalability and future-proof architecture for digital transformation.
Story image
Infrastructure
Report - Data investment the key to better business growth
New research from Digital Realty has revealed that almost half (47%) of IT leaders globally believe their business investment in data systems and infrastructure is a key obstacle or concern.
Story image
SaaS
Cisco reveals new tech, intends to prevent network issues
Cisco has revealed new technology intended to mitigate costly disruptions by aiding IT teams in learning, predicting and planning.
Story image
Data Center
Sime Darby Berhad to use Equinix APAC data centers
Equinix has expanded its digital infrastructure services, including its International Business Exchange data centers, to Sime Darby Berhad
Story image
Microsoft
Microsoft unveils adaptive accessories for disability access
Microsoft is introducing an expansive Inclusive Tech Lab to give people with disabilities greater access to technology through new software features and adaptive accessories.
Story image
Cybersecurity
A10 Networks finds over 15 million DDoS weapons in 2021
A10 Networks notes that in the 2H 2021 reporting period, its security research team tracked more than 15.4 million Distributed Denial-of-Service (DDoS) weapons.
Story image
Sustainability
AyalaLand and FLOW partner for data center development
AyalaLand Logistics Holdings Corp (ALLHC) and FLOW Digital Infrastructure have entered into a framework agreement to bolster the development of carrier-neutral data centers in the Philippines.
Story image
Digital Transformation
EdgeConneX enters Indonesia, plans for data center campus
EdgeConnex has announced it is expanding its presence in Asia with the acquisition of GTN Data Center in Indonesia.
Story image
Hyperscale
SpaceDC partners with Aofei for data center sales in Asia
SpaceDC has partnered with Aofei Data International to sell Aofei's data centers, CDN and SDN in China.
Story image
Akamai
Akamai announces new products across security, computing
Akamai has announced a series of new products and updates to existing products across its security and compute product lines, including its entry into the infrastructure as a service (IaaS) market.
Story image
BitTitan
Why tenant consolidation is critical to cloud success
Consolidating tenants can improve cost management, security and engagement after a flurry of reactive activity following the widespread shift to remote operations.
Story image
Sustainability
Siemens showcases new automated solutions for data centers
Siemens has implemented new automated solutions and AI in the Baltic region's largest data center, providing insight into the future of data center management.
Story image
Disaster Recovery
Kacific launches emergency connectivity offering, CommsBox
Kacific has announced the release of a new emergency connectivity offering designed to rapidly provide broadband service in emergency or disaster zones.
Story image
Data Center
Equinix enters Africa, closing US$320 million acquisition of MainOne
The completion of the acquisition augments Equinix's long-term strategy to become a leading African carrier-neutral digital infrastructure company.
Story image
Data Center
Tier III Ready Datacenter solutions shortlisted for major awards
"These designs will accelerate data center clients' own Tier III certification, reduce the cost, and fast-track their time to market."
Story image
APAC
Odaseva expands in APAC and UK with more security features
Odaseva, a data platform for Salesforce, is establishing new headquarters in London as well as a new data center in India.
Story image
Sisense
Data and analytics could be key to higher selling prices in APAC
Sisense's latest report has found that almost half of data professionals in APAC think customised data and analytics can create better selling prices for their products.
Story image
Talend
Talend introduces new data health solutions for businesses
Talend has announced its latest version of Talend Data Fabric, with the release of Talend Trust Score enabling data teams to establish a foundation for data health.
Story image
Sustainability
ABB unlocks sustainable energy upgrades for data centers
ABB says its new microgrid solutions will get data centers ready for the green revolution and use their own energy sources with a reduced carbon footprint.
Story image
Data Center
Digital Edge to build South Korea's largest commercial data center
The project will be the largest commercial data center project in South Korea with total IT power of 120MW and a capital investment of more than KWR$1 trillion.
Story image
Sustainability
AirTrunk boosts Japan presence with West Tokyo data center
AirTrunk is planning to build TOK2, a new hyperscale data center in Japan which will strengthen the company’s presence in the country.
Story image
Sustainability
RDA and MVGX partner for sustainable data center development
Red Dot Analytics (RDA) and MetaVerse Green Exchange (MVGX) have entered a strategic partnership to make Singapore's data center development and operations more sustainable.
Story image
Colocation
Digital Edge chooses Nortek’s StatePoint for new data center
Digital Edge will use Nortek's StatePoint liquid cooling technology in its new data center, the first commercial colocation operator in Asia to do so.
Story image
Cable
New high-performance cable in the works for Asia
A new high-performance submarine cable is being built to enhance connectivity between Hong Kong, China and Southeast Asia.
Story image
Power / Energy
Keysight Technologies introduces new next-gen DPT solution
Keysight Technologies has announced its new next-generation Double-Pulse Tester (DPT) with the PD1550A Advanced Dynamic Power Device Analyser.
Story image
Telstra
Telstra expands business offerings in the Philippines
The expansion aims to offer more choice for customers and enhance connectivity into the Philippines, and within the country.
Story image
Power / Energy
DigitalBridge makes $30 million equity investment in LEDC
Leading Edge Data Centres (LEDC) has announced it has secured an AUD$30 million equity investment in its regional edge network from an affiliate of DigitalBridge Group, DigitalBridge.
Exabeam
Find out how a behavioural analytics-driven approach can transform security operations with the new Exabeam commissioned Forrester study.
Link image
Story image
Sustainability
Daikin and SP Group to build new energy efficient district cooling system
The project, set to be complete by 2025, will create a system with a cooling capacity of up to 36,000 refrigerant tonnes (RT). 
Story image
Surveillance
Genetec launches new enclosure management system for data centers
Genetec has released a new enclosure management solution that will give data centers the ability to secure, monitor and manage access to racks and cabinets remotely.
Story image
Tech Data
Tech Data to use Pluribus Networks’ cloud solutions in APAC
Tech Data says using Pluribus Networks' Unified Cloud Fabric solution will be a "game-changer" for its data center infrastructure customers and partners.
Story image
Research
New strategies for cloud-native attacks - Aqua Security
New research from Aqua Security reveals attackers are using more sophisticated techniques to target cloud-native environments.
Story image
Cloud
Colt connectivity with AWS increases services in Asia
Colt Technology Services expands cloud connectivity to AWS Direct Connect Hosted services, with speeds of up to 10 Gbps in Asia.
Story image
Data Center
Preventing downtime costs and damage with Distributed Infrastructure Management
Distributed Infrastructure Management (DIM) can often be a lifeline for many enterprises that work with highly critical ICT infrastructure and power sources.
Story image
Storage
Energy storage demand momentum continues, says BYD
BYD has announced an expansion of its production capacities and will deliver 250,000 units of its energy storage system, BYD Battery-Box Premium.
Story image
Sustainability
YTL unveils development of solar-powered data center campus
YTL Power (YTL) has announced the development of a 500MW data center campus in Johor, the first data center park in Malaysia to be powered by solar energy.
Story image
Red Hat
Red Hat expands capabilities to provide streamlined application development in cloud
"Application development is undergoing significant change and developers need tools to support this transformation."
Story image
Sustainability
NTT launches IoT Services for Sustainability offering
"We know what actions are needed to build a more sustainable future and have a robust suite of technologies available to help deliver this impact."
Story image
Cybersecurity
The 'A-B-C' of effective application security
Software applications have been a key tool for businesses for decades, but the way they are designed and operated has changed during the past few years.
Story image
SD-WAN
Orange moves Siemens AG’s entire operations to a SD-WAN
Orange Business Services has migrated Siemens AG's entire global operations, 1168 sites across 94 countries, to a SD-WAN
Story image
Databricks
Databricks grows in APAC market, expands into Korea
Databricks officially launches a local office in Seoul, Korea, building on existing partnerships with Cloocus, Megazone and the Weverse Company