Moreover, with the advancement of telecom technologies, CSP networks have become more complex and grown larger. Network functions, which traditionally comprised physical network infrastructure components, are now a mix of virtual, hybrid and physical network components. The modern-day complex, virtualized networks that are required to deploy innovative technologies like 5G and 5G NR can no longer be efficiently managed manually, nor can they afford to have longer downtimes. To keep up with technology evolution and meet growing customer demands, CSPs are refactoring, replacing complex legacy network infrastructure and OSS, and adopting modern next-generation OSS (NG OSS) solutions.
As CSPs continue to roll out 5G and deploy emerging technologies like the Internet of Things (IoT) and Edge Computing to improve efficiency and offer innovative services, network infrastructure has become more complex than ever, accelerating the adoption of fully virtualized and cloud-enabled networks. CSPs are adopting OSS platforms and modules that can manage, analyze, and optimize their network infrastructure with minimal human intervention and support them in delivering a better customer experience. CSPs rely on NG-OSS platforms that can detect and rectify faults in their complex hybrid network with minimal manual intervention, delivering service assurance and service fulfillment SLAs. Using advanced data and analytics, NG-OSS planforms can analyze networks and services, resulting in intelligent decision-making, optimal network design and efficient service routing. In addition to managing complex networks, cost optimization has also been a major focus for all CSPs. Given the high CAPEX investment required to roll out 5G services, CSPs today are looking to adopt an OSS that can best utilize and manage existing infrastructure while identifying only critical areas where investments need to be made on network infrastructure. The adoption of cloud-based NG-OSS allows CSPs to limit their upfront investment and time to deploy solutions and to scale more flexibly in line with demand.
Since NG-OSS platforms are modular and vendor-agnostic, CSPs can deploy them one domain at a time instead of taking up a capital-heavy overall transformation project. Thus, a modern-day NG-OSS platform, delivered on a SaaS model, allows CSPs to channel their CAPEX investments into critical infrastructure components and helps optimize CAPEX and OPEX. Within the OSS market, the benefits of the SaaS model are slowly winning over CSPs that are not currently comfortable with network domain off-premises software applications. The need for cost optimization and effective management of hybrid physical and virtual networks is among the top reasons why CSPs need a modern NG-OSS delivered on a SaaS model. It has the capability for end-to-end service orchestration spanning different network domains and distributed infrastructure.
Managing cost pressures and complex hybrid networks and delivering a better customer experience are some of the key challenges an NG-OSS is expected to solve. However, to evolve as the NG-OSS, solution providers need to ensure that the following is taken into consideration in their product development plan:
The SaaS OSS market, which stood at $25.4 billion in 2022, is expected to reach $94.5 billion by 2026. To stand out in such a highly competitive market, OSS vendors must differentiate themselves from competitors. Successful 5G deployments will need software-defined network infrastructure, which would be hosted on hybrid or multi-cloud environments. Only a truly cloud-native NG-OSS would be able to manage and orchestrate such complex hybrid network functions. With CSPs aggressively rolling out 5G services, they would look toward OSS vendors that can support them in quickly monetizing their network infrastructure. Although OSS providers have similar offerings, market leaders who want to stand out must highlight how their OSS understands the latest telecom industry trends and can align with these trends to solve any CSP challenges that could arise. To increase market share and accelerate their go-to-market strategy, OSS vendors should include engagements where they can demonstrate their understanding and thought leadership on the latest technology innovation in the telecom industry.