Partnering is a key consideration for telecoms pursuing enterprise 5G

These current preferences aren’t that surprising. At least eight in 10 networking executives view advanced wireless as a key enabler of the next wave of innovative technologies they’re deploying to future-proof and transform their companies, such as big data analytics, artificial intelligence (AI), IoT, cloud, and edge computing.⁷ While telecom companies have long sold connectivity services to enterprise customers, they haven’t historically been the go-to for digital transformation solutions. It makes sense then that tech providers—namely, cloud providers—are top of mind, since many enterprises are already working with them as part of their transformation initiatives. However, it’s important to note that the advanced wireless ecosystem is fluid and rapidly changing—and these preferences are likely to evolve as well.

Telcos and hyperscalers are both positioning themselves to take advantage of the emerging wireless opportunities. Spectrum licensing, mobility, and device management are just a few of the new challenges presented by private wireless networks—and a place where network providers can shine. The telcos have expertise building out reliable “wireless superhighways,” and many are now in the process of engineering enterprise-oriented 5G products and services, as well as developing their go-to-market strategies. For their part, tech companies bring experience with data management, analysis, and innovative application building—as well as an eager customer base.⁸

Indeed, cloud companies will likely be key: Nearly nine in 10 networking executives expect to deploy and manage their wireless networking applications and services primarily on the cloud or at the edge in the next 2–3 years.⁹ Telcos are already partnering with hyperscalers to extend cloud capabilities to the edge and offer more advanced networking solutions.¹⁰ And, many telco and tech companies are partnering to form innovation labs and incubators, aiming to codevelop innovative advanced wireless applications and products.¹¹ Instead of competing head to head, it’s likely that network providers and tech companies will increasingly collaborate to develop the essential underlying infrastructure, applications, and sales models needed to grow the market—and to deliver innovative enterprise solutions more rapidly.

As network providers aim to capture their fair share of the advanced connectivity market, they should expand their reputation as a provider of connectivity, to being a trusted partner for advanced wireless solutions in the enterprise.¹²

Considerations for network providers

• Recognize that advanced connectivity is ultimately about innovation. Networking executives consider 5G and next-gen networks as strategic enablers of innovation. Indeed, our survey found that the top driver for enterprise adoption—tied with improving efficiency—is a desire to take advantage of new technologies. Network providers should therefore strive to become customer-centric and solution-focused, as well as consider when to partner with technology providers.
• Recognize the advantage of licensed spectrum. To build out private networks, almost half of those surveyed said they would prefer to use licensed spectrum (dedicated or shared) from a network provider.¹³ Telcos have the benefit of holding 5G-suitable spectrum and can seek to monetize those assets by extending their public networks deeper into the private setting. With their extensive experience running cellular networks, network providers can offer key capabilities such as cybersecurity, privacy, and established relationships with other carriers to support WAN and mobility use cases.
• Embrace the larger ecosystem. The next-gen wireless ecosystem is complex and evolving. On average, adopters engage with about eight types of vendors—such as cloud providers, application developers, wireless carriers, network equipment providers, and consultants/system integrators—and often with multiple vendors of each type—to cobble together custom solutions.¹⁴ And just three in 10 adopters prefer to keep engaging with their current vendors; the rest are open to switching.

What’s more, the architecture of 5G networks is expected to become more virtualized, open, and programmable, allowing best-of-breed components to proliferate.¹⁵ Managing and orchestrating a multitude of solutions is notoriously difficult. To tackle the growing complexity, adopters are likely to seek more help from system integrators and consultants. Against this backdrop, wireless carriers should consider partnering strategically with other vendors, as well as integrators, to provide full end-to-end solutions. As the underlying technologies mature, carriers can also commercialize standardized products and build their reputation as a trusted partner.