Network Transformation Solutions Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2018 – 2026

Network transformation solutions transform information and communication technology (ICT) infrastructures into a competitive weapon. These solutions give more control of network-related costs, and provide competitive advantage by leveraging new business models and new technologies. This include convergence solutions, network infrastructure products, scalable and secure IP telephony platforms, IP and performance management software, and a complete set of security products.

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Communication service providers (CSPs) own and operate networks, whereas network equipment providers (NEPs) provide network equipment and services such as maintenance and installation. The convergence of telecom and IT has led to the emergence of new products that drives the demand for both data and personalized services. CSPs are also affected by the upsurge of over-the-top (OTT) service providers which use CSP networks to provide services to consumers. This forces CSPs to offer more distinguishable services to retain and increase customers. CSPs are therefore transforming their existing networks and are rapidly entering the cloud ecosystem through existing systems and processes to support next-generation services. The introduction of Network Functions Virtualization (NFV) and Software Defined Networking (SDN) has ushered in a new era of innovation that enables CSPs to create highly automated networks and introduce new customized services.

CSPs are actively pursuing partners which help them create new revenue-generation opportunities, quickly and cost-effectively serve increasing customer demands, and improve time-to-market for new service deployments. For instance, in February 2018, Tech Mahindra (provider of business reengineering and digital transformation services and solutions) and VMware, Inc. entered into a new partnership to deliver solutions that accelerate network transformation for CSPs. Through this prolonged relationship, the companies will combine Tech Mahindra’s Network Services with VMware’s 5G and OpenStack-ready NFV platform which helps CSPs to speed-up new service delivery, open new opportunities, and improve IT and business economics.

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Rise in the implementation of Bring Your Own Device (BYOD) policy, increasing virtualization in the IT sector, increase in the adoption of IT as-a-Service (ITaaS) and rapid demand for bandwidth are some of the key factors fuelling the market growth. This improved agility helps CSPs to transform their networks, allowing them to offer new services and data analytics as part of on-demand, platform-based, and pay-as-you-go model. However, lack of skills and knowledge in next-generation networking solutions are restraining the network transformation solutions market growth. The development of 5G networks and acceptance of advanced networking solutions in SMEs is expected to open up new lucrative business opportunities for the network transformation solutions market over the forecast period.