Beyond by BearingPoint has recently rolled out its annual enterprise 5G report in partnership with Omdia. The report clearly mentions that the share of enterprise 5G deals led by Communication Service Providers (CSPs) has declined from 21% in 2020 to 16% to date.
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The number of enterprise 5G projects went on a 2X spree over time in a year. Still, telcos recognizing the requirement of omni-partner, multi-technology, solution-oriented approach for enterprise 5G, competition from other service providers have highly impacted CSPs share of the market. The study also discovered that CSPs are realizing that the enterprise 5G market is important but must completely commit and provide dedicated resources in place faster if they are to capture opportunities as they emerge.
The first report that was published in 2020, Industries and Enterprises are ready to reap the benefits of 5G, came to a conclusion that 72.3% of CSPs already believed that most 5G revenues would be derived from B2B, B2B2C, or government, smart city opportunities. It was also found in the report that CSPs were being removed out of enterprise 5G engagement and the solution building by enterprises and other players existing in the market. CSPs led only 21% of enterprise 5G deals and in 40% of the deals, CSPs were the secondary supplier. Out of the whole number, 32% were led by enterprises, and 7% were led by alternative service providers.
Annual Enterprise 5G Report
The report consists of data related to CSPs’ role in the ecosystem via the eyes of potential partners like system integrators, vendor specialists, and global vendors. Surprisingly, all ecosystem players expect CSPs to take the initiative on orchestrating various services, capabilities, and technologies and believe there is more to be done by CSPs’ to acquire this role.
The report focuses more on the requirement for CSPs to assimilate lessons like focus, agility, and speed from alternative service providers. They must pave their way rapidly in the enterprise market without waiting for network slicing, complete 5G coverage, or other 5G capabilities. It also throws light on the fact that 5G network design is only one component of enterprise digitalization and that CSPs are supposed to offer additional value to get considered for becoming preferred partners. The CSPs must demonstrate higher flexibility within their commercial and business models.
“It’s clear the enterprise 5G market is not just about connectivity. CSPs need to prove their prowess in security, network architecture and design and demonstrate commercial creativity to win the trust of enterprises to do more,” said Evan Kirchheimer, Research Vice President, Service Provider & Communications, Omdia. “CSPs have technological assets and expertise. To bring these to life and monetize them in the 5G world they will need to form relationships with new partners and think creatively about what type of partner organization will help them address the enterprise opportunity.”
CEO’s Take
CEO at Beyond by BearingPoint, Angus Ward, said that CSPs are not supposed to remain trapped in thinking and understanding that enterprise 5G is an ecosystem play. He further said that despite creating and launching new strategies and establishing new partnerships, CSPs have failed to move at the pace of enterprise demand. It is quite clear that enterprises are desperately looking to adopt 5G solutions and get the advantages of technology for their businesses but these findings point towards a single conclusion, CSPs understand the value of the opportunity but they are lacking in speed and determination.
Mr. Ward concluded by saying that CSPs should avoid hesitating and continue to be willing to collaborate even when they may not be in full control of the product or solution.
