Nine in 10 Communications Service Providers Say Network Transformation is Critical to Survival

Rhea-AI Summary

New research from MeriTalk, funded by Dell Technologies, highlights the critical need for network transformation among communications service providers (CSPs). According to the study, 90% of CSPs believe that network transformation is vital for survival, aiming for improved customer experiences, stronger cybersecurity, and competitive differentiation through AI integration. However, 96% of CSPs admit their network transformation efforts are lagging due to time, performance, and security concerns. Despite recognizing the necessity of open network architecture, only 22% have a strategy in place. The study, based on insights from 450 executives across North America, Europe, and Asia-Pacific, also reveals that 83% of CSPs see IoT monetization as crucial, yet 55% feel the industry is not adapting swiftly enough. Dell is committed to partnering with CSPs to develop strategies and solutions for effective network transformation.

Positive

• 90% of CSPs believe network transformation is essential for business survival.
• Network transformation aims to improve customer experiences and strengthen cybersecurity.
• 83% of CSPs focus on monetizing IoT services.
• Dell Technologies is committed to helping CSPs achieve network transformation.

Negative

• 96% of CSPs say their network transformation efforts are lagging.
• Only 22% of CSPs have an open network architecture strategy in place.
• 50% of CSPs have not aggressively approached legacy transformation.
• 55% of CSPs believe the industry is not adapting fast enough to edge demands.

New research from MeriTalk, underwritten by Dell Technologies, says improved customer experiences, stronger cybersecurity, enhanced competitive positioning and AI are top drivers for open networks

ROUND ROCK, Texas, May 23, 2024 /PRNewswire/ -- Network cloud transformation is a critical path that communications service providers (CSPs) must take to grow their businesses. And according to a new MeriTalk study, underwritten by Dell Technologies, CSPs agree.

In fact, nine out of 10 CSPs take it a step further and say network transformation is critical to their organization's survival. Why? CSPs believe network transformation can improve customer experiences, strengthen cybersecurity, allow them to integrate AI and differentiate their networks in a highly competitive market.

So, if CSPs agree network transformation is critical, why do 96% of CSPs surveyed say their network transformation vision is lagging, holding them back from giving their customers an ideal network experience?

The new MeriTalk report, "Network Cloud Transformation – Global Insights for CSPs," draws on insights from 450 executives from a mix of large and small CSPs across North America, Europe and Asia/Pacific. According to CSPs, the time needed to upgrade, performance/reliability concerns and security concerns are among the top impediments when transitioning to an ideal customer network. 

Here are a few more stats to consider:

• According to the report, 88% of CSPs agree an open network architecture is necessary to be a best-in-class provider, yet only one in five (22%) report having an open architecture strategy today.
• Just 50% describe their approach to legacy transformation as "aggressive" over the past three years.
• Further, 83% report that monetizing IoT services is a key focus for their organization's business strategy, but over half–55%–say their industry is not adapting fast enough to meet the demands of the edge.

Overall, it's clear that CSPs know what they need to do, but an emerging theme is that they don't yet have the strategies and tools in place to get started on telecom network transformation. And we agree, getting started is the hardest part.

That's why we're collaborating across the telecom ecosystem and in our Dell Telecom Ecosystem Lab to build on industry partnerships and design integrated, tested and reliable solutions that enable network cloud transformation. We're partnering alongside CSPs to help them achieve what the research says they want to do: enable network transformation to drive business growth and better customer experiences.

Our goal is to flip this study on its head. 100% of CSPs that say they want to reap the benefits of network cloud transformation should be able to do so. Developing a strategy is the first step. And we're here to take that step with you.

Learn more at dell.com/telecom.

The report is based on a survey of 450 telecom decision-makers at communication service providers conducted in January and February 2024, with equal representation (33%) across three regions: North America, Europe and Asia-Pacific. The resulting research has a margin of error of ±4.57% at a 95% confidence level. To review the full findings, view the report.

 

  

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SOURCE Dell Technologies

FAQ

Why is network transformation critical for CSPs according to the Dell-backed study?

90% of CSPs believe network transformation is vital for improving customer experiences, strengthening cybersecurity, and integrating AI.

What percentage of CSPs are currently implementing an open network architecture?

Only 22% of CSPs have a strategy for open network architecture.

What are the main challenges CSPs face in network transformation?

CSPs cite time, performance/reliability concerns, and security issues as top impediments.

How many CSPs view IoT monetization as a critical strategy?

83% of CSPs consider monetizing IoT services a key focus.

What is Dell Technologies’ role in CSPs' network transformation?

Dell Technologies partners with CSPs to develop integrated, reliable solutions for network cloud transformation.