Seize the opportunity of enterprise applications with network slicing

5G is on the rise for a reason. In addition to faster transmission speeds and improved connectivity, it also brings new concepts such as service-based and cloud-native architectures and policy-driven network slicing. Although the impact of 5G on end users is making a splash around the world, these advantages are just a flash in the pan for technology and communication service providers (CSPs) compared to the impact of these new business models.

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Most operators plan to launch standalone 5G products within the next three years. It is important to avoid thinking that 5G is just another "G". It will be a true ecosystem in which CSPs can combine mobile connectivity, service/device management and monetization expertise as the core of what they have to offer. Their unique capabilities and resources combined with vertical-specific industry applications will produce highly customized innovations related to smart cities, healthcare, smart homes, industrial automation and finance.

Since 5G introduces several innovative and disruptive network models, many of which have not been applied to mobile networks in the past, a "one-size-fits-all" approach to network infrastructure will no longer work. Instead, 5G will bring service-based architectures, IT-centric cloud services, and the ability to personalize network "slices" like never before. As a result, the specific needs of vertical industry applications can be better matched to target customer groups.

Although the concept of dedicated core networks is not new and was introduced as a DECOR feature in 4G networks, 5G segments the network into its core services. Network slicing is a highly dynamic process that involves defining, instantiating and selecting, scaling, and de-instantiating slices. Therefore, to fully support network slicing, several disciplines should be considered, such as resource and lifecycle management, business processes, real-time selection, and KPI monitoring.

Ultimately, network slicing allows service providers to adapt connectivity services to the precise requirements of any given application, user, device or context by logically isolating virtualized network resources. By partnering with third-party cloud providers and leveraging network slicing, CSPs can experiment with new services that were not previously an option. Historically, high upfront CapEx and OpEx costs have made such offerings risky.

TM Forum’s “Network as a Service: Addressing Opportunities Across the Enterprise” study found that B2B services like Network as a Service (NAAS) have great potential for growth. The May 2019 report found that nearly half (46%) of CSP respondents said their companies receive less than 10% of their revenue from B2B services.

However, in the long term, more than 70% of CSPs expect revenue from B2B services to account for more than half of total revenue by 2024-2029, due to the changes brought about by NaaS. CSPs that adopt this approach will be better able to quickly launch and grow customized network slices as a service and cloud-based applications, opening the door to new revenue streams. Examples include:

• Wireless Last Mile: Enterprise service providers can get closer to subscribers by implementing “wireless last mile” connectivity as part of an end-to-end offering. 5G network slicing makes this possible, enabling CSPs to implement macro wireless connectivity on-premises.
• Partners and Ecosystem: Operators can leverage their own network slices along with radio access services to build a very strong ecosystem of enterprise services and build partnerships on this ecosystem. These partnerships make it easy for enterprises to incorporate access services into their end-to-end offerings. In addition, service providers and operators can leverage this ecosystem to create their own adjacent services by orchestrating various enterprise services using their access services.
• Bigger packages, more monetization: By owning the last mile of connectivity as a whole, enterprises and providers can develop new service packages and packages that monetize new endpoints (such as IoT devices) and services (such as content subscriptions). Packages can be created and tailored for vertical industries, with complete applications - from equipment monitoring and drone inspections for buildings to POS connectivity and inventory tools for retail - to meet the full range of customer technology needs.

Ultimately, the opportunities for network slicing extend far beyond the slice itself. Since network slicing allows service providers to adapt connectivity services to the precise requirements of any given application, user, device or context by logically isolating virtualized network resources, this opens up tremendous opportunities for countless applications. The question that remains is who will take advantage of this opportunity.

This is undoubtedly a daunting task for service providers, requiring them to reposition themselves to keep up with emerging trends, regulations, and business models in their respective industries. Fortunately, they can do this through agile IT practices like cloud native and DevOps, which will allow them to embrace the multi-cloud environment that is essential in the digital era of intelligent end-to-end ecosystems.