A significant 80+% of the largest global enterprises will consider buying edge, 5G-slicing and private network services within the next five years, according to a report by CSG and Analysys Mason.
Though opportunities abound, disparities between CSP and enterprise views on the importance of technology solutions and billing and invoicing for supplier selection could lead many CSPs to fall short on capitalizing on the post-pandemic economy.
The CSG commissioned report - Large Enterprises’ Demand for Communications and IT services - surveyed 16 CSPs and more than 200 multinational corporations between February and May 2021. The report focused on three core areas: identifying changing patterns of enterprise demand for communications and IT services; the opportunity for CSPs; and the role of billing and invoicing.
Looking more closely at the findings, 92% of enterprise respondents have accelerated their plans to use more IoT, security, cloud and unified communication services. Though connectivity still accounts for the majority of current revenue for CSPs from large enterprises, cloud, security, edge and IoT services have come out on top as the main drivers of future revenue growth. In fact, 66% of enterprises surveyed expect to increase cloud services spending in the next 12 months, reflecting the growing importance of the cloud for business continuity.
Catherine Hammond, Principal Analyst, Analysys Mason
Up to 50% of enterprises today say they already buy cloud, security and IoT services from their main CSP and another 30% would consider buying these services from their CSP in future.
Ken Kennedy, COO and Global Head of Revenue Management and Digital Monetization for CSG
To deliver on this promise, CSPs need to modernize their technology stacks to create scalable processes that enable them to bring new products and services to market faster and lead to new revenue streams.
