Vendors are using M&A activity to bolster their capabilities in order to achieve revenue growth

5G is expected to enable numerous new use cases, most of which will require low latency. This requirement for low latency along with service-based architecture (SBA) for 5G calls for high levels of automation and assurance in order to reduce complexity and keep operational costs in check. Vendors therefore have two main goals to achieve in order to enable communications service providers (CSPs) on their 5G journeys: they must innovate existing OSS/BSS to support new levels of automation and assurance and develop new cloud-based systems that can be scaled to unlock new revenue streams for CSPs. However, many vendors are struggling to achieve revenue growth while innovating in house and are thus bolstering their capabilities with either M&A activity or sponsorship deals with private equity and venture capital partners.