In particular, North American businesses are most positive about the role CSPs will play in 5G, with 96 percent optimistic that they will do more than provide connectivity. Large North American enterprises say they want to work with CSPs as they’re proven vehicles that orchestrate ecosystems of partners, manage complex programs and are perceived to be more flexible than other potential 5G solution providers. 

Ecosystems are an effective way for CSPs to plug their knowledge and technology gaps, broaden their portfolio of services and solutions, and encourage innovation. Historically, CSPs have tended not to work this way and, in order to be successful, there is a need for change in mindset and new efforts. Perhaps most important is the need to spearhead ecosystems with third-party partners to address the needs of businesses who want the ‘perfect’ solution to their problem: not too slow nor pricey, and not in the form of multiple products.

While CSPs want to buy complete IoT solutions, the mindset should be that it’s not about buying a network slice or MEC product. For businesses, it’s about finding pre-integrated, completely consumable solutions and the best available technologies to quickly drive efficiencies for customers or help them grow revenue as part of their digital transformation. In a nutshell, they want something that is “easy to try, easy to buy, easy to consume.” Larger enterprises can’t effectively manage integration of new standalone technologies, either; they need partners that understand their challenges while orchestrating the right ecosystem of technologies and players to deliver problem-solving solutions. Covid-19 will only accelerate this trend as it renews pressure to digitally transform faster.

CSPs want to retain customer relationships and grow revenue, but monetizing IoT throughout the process of enterprise renewal during Covid-19 will require having industry-specific solutions underpinned by an enabling technology layer that is massively scalable. Strong partner ecosystems will generate powerful network effects around a digital business platform that provides massive economies, frictionless process execution and zero-touch operation for customers. These architectures and solutions need to be capable of being converted into technology wrappers and services.

Fostering IoT innovation

Solving customer problems is not a single-organization show. It requires a broader set of perspectives and a cohesive exchange of customer insights and ideas for new products or services. This is the concept behind an ecosystem-enabled solution provider. Such a provider brings together a broader set of capabilities around a digital business platform to prototype and test new ideas with customers. In these new multi-sided business models, a partner ecosystem is key to bringing new data sources, driving innovation, expanding offerings and extending into the white space between old industry verticals and growing revenues.

There isn’t a single entity that hasn’t been affected by Covid-19; our global economy is in a holding pattern as budgets tighten. Laser focus on revenue spend will lead both enterprises and SMBs to accelerate investments in automation, remote business operation and remote working in the short term. While this process is in motion without a hard timeline, the prevailing CSPs will be ones that harness a powerful ecosystem to provide full solutions to problems and, in so doing, build much stronger and closer customer relationships. This will be a true win-win.