Today “over-the-top” or “OTT” strikes fear into wireline Communications Service Providers (CSPs). What if OTT could inspire thoughts of opportunity rather than eliciting fear of revenue erosion?
NFV and SDN Technologies are now coming together with a vast ecosystem of hardware and software components. Together, they enable CSPs to deliver hosted managed services over the top of existing wireline infrastructure.
With the OTT version of managed enterprise services, the CSP may offer managed router, VPN, firewall, encryption, PBX and other services without proprietary CPE appliances and the associated truck rolls.
The CSPs have a strong competitive advantage based on their metro/access networks and the central office footprint. Providers pushing cloud technologies to the edge – rather than “in the cloud” – can create an advantage in latency, performance, security and proximity. Leveraging cloud technologies plus NFV for managed network services provides network operators with a strong opportunity for market differentiation and net-new service revenues.
Leveraging carrier class orchestration software and an open ecosystem of independent software vendors, retail and wholesale CSPs can deliver high-margin services using commercial off-the-shelf computing hardware.
We expect to be hearing a lot more about this topic in the coming months.