For 5G Enterprise business, the time is now
Senior Vice President, Head of Business Area Digital Services
Senior Vice President, Head of Business Area Digital Services
Senior Vice President, Head of Business Area Digital Services
As per a recent Ericsson Compass 2030 report commissioned by Ericsson, experts interviewed reveal an 12% CAGR forecast for industry digitalization opportunities between 2020 and 2030 compared to a 0.75% CAGR for current existing services.
Examples include – smart city developments, connected vehicles, retail, mining, construction, healthcare. However, it should not be underestimated the complexity required in getting this right, we require a new foundation and a new modus operandi to realize the transformational change at hand.
One of the concerns I often hear from customer discussions is around where to start and how should they strategically position themselves.
My advice is three-fold:
1. Get your technology stack in order
5G, with the possibility to create enterprise values beyond MBB really comes with 5G standalone. 5G Core and end-to-end orchestration are at the heart of that change. With a 5G standalone core network, a foundation to address the new enterprise opportunities can be established. An open programmable network with the capabilities needed to co-create together with ecosystem, customers and partners. Focus on your areas of differentiation these are: Orchestration, Automation, Cloud native technologies.
2. Elevate your position on the flight deck
As highlighted above globally we see an interest in CSP’s enterprise ambitions moving beyond traditional connectivity services, and into the non-communication services.
To significantly take the reins in this ambition, the CSP needs to see themselves as responsible for network traffic control – navigating and conducting end deliverables through orchestration – ‘flight deck’ view. In this position of flight control, the CSP is enabled to deliver multiple telecom edge and network slicing capabilities that can in turn be exposed to enterprise application developer ecosystems, e.g. those facilitated by the different hyperscale cloud service providers, like AWS, Google and Microsoft. By working with several Hyperscalers, a communications service provider is in a pole position to help the enterprises to make use of different solutions from different Hyperscalers through e.g. a virtual 5G private network.
As per TM Forum discussions recently, we need to adopt a partnership and collaborative approach to realizing what the enterprises need. Recently, Ericsson has signed deals with the Hyperscalers and our CSP customers, e.g., the announced one with Telefonica, Germany to explore and develop network edge and enterprise edge values together with different industries and enterprises. This is a showcase of example of what is possible when we think outside our current traditional ways of working and elevate ourselves to the ‘flight deck’.
3. Partner up for success
We need to realize that CSPs are on the same team with the same end goal. In this respect, TMForum has a key role to play in bringing the industry together, helping drive transformation and enabling value adding ecosystems – together we can work out how to move faster, deliver more, deliver better. I really support the thinking here from Stephane Richard, Chairman and CEO of Orange Group “The story of 5G has to be written together.”
We need to continue to come together, to redefine our ecosystems and the value they deliver, to use the amazing skills and dedication of our teams to be the digital transformation partner for industry. I fundamentally believe to succeed and win the trust of the innovative enterprise sector we need to show that we can walk in their shoes and we clearly see their viewpoints. To elevate the discussion, we must demonstrate that we are a connected industry that works holistically and is open to new partnerships for their benefit.
Time to reveal our true potential
If 2020 has taught us anything it is that what we do has come more into focus, our importance on the global stage is cemented- there is no question to how important connectivity is. But I don’t believe we have yet unveiled our true potential and how we can accelerate industries and societies with a connectivity spanning industry ecosystem boundaries.
As we approach 2021, I see this as a pivotal year where we as an industry have the real opportunity to change the paradigm from connectivity provider to service enabler.
If an Enterprise use case is dependent on an ultra-stable network - let’s take remote eye surgery or connected trucks – you will want an infallible service, you want security and you want guaranteed millisecond latency. There is only one industry in the world that can deliver that with scale, speed and security and that is the telecommunications industry.
Check out a recent conversation I had with Nik Willets CEO of TM Forum on the pace of innovation and transformation in EMEA with regards to the industry transformation in action.
We recently launched a new 5G Core cloud native guide series, I recommend you check out the series and also this particular gem on Orchestration: