Shift to cloud to redefine European operators

ADL and Bell Labs report that NFV and SDN will impact the telcos business model
Shift to cloud to redefine European operators, Research, Data

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The shift to become a Cloud Carrier has the potential to significantly re-define how the industry competes in the cloud era, according to a new report from Arthur D. Little (ADL) and Bell Labs Consulting that examined operators in 35 European countries.

In the report, ADL and Bell Labs present a first-of-its kind analysis of the strategic value and impact of bringing Network Functions Virtualisation (NFV) and Software-Defined Networks (SDN) into the carrier network.

The report findings show that the efficiency impact of onboarding NFV and SDN for these operators could be worth 14 billion euros per year in the network domain alone, which will be augmented by a further 25 billion euros per year in non-network operating costs through greater automation and simplification of business processes.

The research propose European telcos to co-create the future with lead customers and partners and move early and purposefully to reposition the telecom operator

“The time is now for Europe’s telecommunications industry to bring networking into the cloud era, it will not be trivial to execute programmability and automation at the scale required for success, but the prize is significant,” said Jesús Portal, partner at Arthur D. Little.

“Moving to the new ’cloud network’ is no longer a question of ‘if’ for service providers but the real questions are ‘how and when’. The answers and strategies can be very different based on the technology structure and business model for each operator but there is no doubt the planning needs to start now,” said Cassidy Shield, managing partner, Bell Labs Consulting.

The study scrutinised operators in 35 European countries. Collectively, these operators had adjusted revenues of 250 billion euros in 2013, with annual OPEX of 150 billion euros.

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