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Accelerating the CSP-to-DSP transformation journey: next-generation overlay platforms

John Abraham Principal Analyst, Research

Accelerating DSP to CSP transformation reportThis report examines how a next-generation overlay platform can help communications service providers (CSPs) to address opportunities beyond their current markets and customers by providing capability to support new markets and new customers. 

With voice and messaging revenue in decline, and mobile data consumption rapidly increasing, CSPs need to make considerable investments in upgrading their infrastructure to support the rising demand for data services.

Furthermore, while many CSPs have a plan in place to digitise their operations, most are weighed down by time constraints and the complexity of transforming their systems.

The combination of these pressures means that the strategy for modernising and transforming existing support systems needs to be considered carefully.

Next-generation overlay platforms offer CSPs a cost-effective way to transform complex, disparate legacy systems without waiting for a large-scale transformation of the entire IT landscape.

The growth of the digital economy in the past decade has upended traditional business models and strategies. The ubiquity of the Internet and the penetration of smartphones have both brought about a radical shift in how businesses develop and promote their services – and how customers perceive and engage with these services.

These changes have primarily been driven by online digital companies that leverage the power of the Internet to build a network of participants and add value through multi-dimensional interaction flows, thereby creating self-sustaining and thriving ecosystems. 

The need to participate and enable new business models that leverage IoT, big data analytics and business intelligence is quickly becoming a major imperative for all CSPs.

The adoption of a platform layer over existing silos that can abstract and encapsulate information from multiple existing systems, and simultaneously leverage multi-tenant capabilities to rapidly introduce new third-party service providers on a single platform, enables CSPs to quickly support new digital services (offered either by partners or directly), as well as address new markets with bundles of existing services and new digital services.

As shown in the figure below, this approach helps CSPs to swiftly shift towards becoming digital service providers (DSPs( by leveraging the power of the platform to address new opportunities.

Figure 1: A next-generation overlay platform helps CSPs to address opportunities beyond their current markets and customers by providing capability to support new markets and new customers