If Outsourcing Picks Up...
Service providers may outsource more network management and QoS-related
functions, once the model becomes proven.
That may not have positive fallouts for T&M vendors. One, network
management service providers are likely to apply greater pressure on T&M
equipment prices.
Two, as this new class of service providers could be managing networks of
multiple operators, the shipment of T&M equipment will come down by a
factor.
While outsourcing of QoS-related functions is a potential proposition, not
everybody sees it happening, at least not in the near future.
In the longer run, the threat could get real mainly due to the increasing
complexity of the network and the associated cost of newer T&M equipment. In
some cases, the evolutionary nature of the network is responsible for the
complexity. In other cases, consolidation has contributed its bit. This is
unavoidable as market needs and not technological considerations guide
acquisitions.
With multiple technologies comes the need for multiple T&M equipment,
which pushes costs up. Outsourcing can be a tool for operators to safeguard
against such difficulties.
One way to address the problem and keep the market is to pack support for
multiple technologies in existing T&M instruments. The trend has already
started and will most likely pick up, depending on the market dictats.
In this case, however, the T&M spend of service providers may continue to
hover at the existing levels. Back to square one, is it?
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