Telco Cloud Startups go Head-to Head Against Major Infrastructure Vendors - And Win

This disruptive paradigm shift is critical for the next generation of telco networks and in fact, the telco business itself. Innovation in this market has typically relied on standardization, efforts of multi-national telcos and a few giant companies with thousands of employees developing new technologies. The 15 companies ABI Research has profiled, and the new wave of startups go directly opposite this established norm: some of them are 10-people companies and rely on open source projects to win business. Only by embracing this new trend can telcos break free from their connectivity-driven business model. Frinx, inManta, Metaswitch, Netrolix, NFWare and Yotta Communications are a few examples of startups that would have no place in the market five years ago.

This disruptive paradigm shift is critical for the next generation of telco networks and in fact, the telco business itself. Innovation in this market has typically relied on standardization, efforts of multi-national telcos and a few giant companies with thousands of employees developing new technologies. The 15 companies ABI Research has profiled, and the new wave of startups go directly opposite this established norm: some of them are 10-people companies and rely on open source projects to win business. Only by embracing this new trend can telcos break free from their connectivity-driven business model. Frinx, inManta, Metaswitch, Netrolix, NFWare and Yotta Communications are a few examples of startups that would have no place in the market five years ago.

"We expect to see many more deals won by these 15 companies soon, as telcos will realize the world doesn't end beyond the reach of large infrastructure vendors," says Dimitris Mavrakis. "Software expertise, fresh thinking and most important, no legacy business to maintain, will give these new entrants considerable advantages to become sustainable and profitable businesses".

These findings are from ABI Research's Telco Cloud Hot Tech Innovators report. This report is part of the company's Telco Cloud Platforms & Digital Transformation research service, which includes research, data, and analyst insights.

About ABI Research

ABI Research stands at the forefront of technology market research, providing business leaders with comprehensive research and consulting services to help them implement informed, transformative technology decisions. Founded more than 25 years ago, the company's global team of senior and long-tenured analysts delivers deep market data forecasts, analyses, and teardown services. ABI Research is an industry pioneer, proactively uncovering ground-breaking business cycles and publishing research 18 to 36 months in advance of other organizations. For more information, visit www.abiresearch.com.

 

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