SDO spending is slowing as system fragmentation and regulatory pressures hinder AI-enabled deployments

Telecoms operators reduced their spending on service design and orchestration (SDO) systems in 2024 primarily because they have faced challenges in consolidating and integrating OSS/BSS platforms from multiple vendors. Agentic AI interoperability issues have further slowed the adoption of new technologies and have limited innovation in the SDO market. We also observed a slight decline in spending in 2024 on service, activation and fulfilment solutions due to ongoing hurdles in multi-vendor, hybrid-cloud environments.

This article provides insights into spending in the SDO market in 2024 and is based on the detailed findings from our related report, Service design and orchestration: worldwide market shares 2024.