ABI Research, which is a market-foresight advisory firm and provides contemporary data on the most fascinating transformative technologies, has recently announced that ‘network slicing’ is the most promising tool of the upcoming 5G technology. According to the reports, network slicing (which basically allows multiple virtual networks to be built on a common shared physical design) potentially can create value of about US$66 billion from the telecom industry in the forthcoming time.
“Telcos (aka Mobile Service Providers or MSPs) are increasingly seeking to create services that are more differentiated and tap into the growth engine of the future, intrinsically linked to a superior experience for end consumers, and operational simplicity for enterprises and end verticals,” commented Don Alusha, Senior Analyst at ABI Research.
“Network slicing revenues will eventually be on an upward trajectory, driven by digital, cloud, and security requirements of multiple industry verticals, particularly for the trio of manufacturing, logistics, and automotive. Realizing the full revenue potential is dependent on essential slicing infrastructure from vendors, and pertinent applications delivered by MSPs.”
There are some significant PoCs and pertinent commercial activities in the market especially from BT and Swisscom, and more are expected during 2018 and beyond. “This is encouraging and lays the foundation for widespread commercial deployments even before 5G diffusion,” noted Alusha. There are specific vendors in the market who are addressing end-to-end slicing scenarios that pull together a number of technologies, Nokia and Ericsson chief among them.”
At a broad industry level, significant work is taking place to institute best practices around multiple standards and technologies that may need harmonization to enable end to end slice implementations.
“MSPs and vendors are pursuing different models of collaboration with vertical markets and growth for each market will be driven by premium services, revenue potential and ability to address existing challenges in the short and medium term,” concluded Alusha. “Vendors should aim to eliminate complexity through automation and ‘deep’ orchestration, a feat that calls for close collaboration with standard bodies to standardize and achieve alignment apt for commercial deployments and ecosystem integration.”
These findings are from ABI Research’s Network Slicing: Commercial Analysis and Enabling Technologies report. This report is part of the company’s Telco’s Digitization research service, which includes research, data, and Executive Foresights.