25 Apr 2017
SINGAPORE, April 26th, 2017 – IDC today published a MarketScape report titled IDC Telecom MarketScape for Next-Generation Service Providers 2016-17, which evaluates the leading regional and global telecommunications service providers (SPs) in Asia Pacific (AP). According to the report, AT&T, BT, Orange, and Singtel were identified as “Leaders” of the next-generation telecom service providers in the region along with plenty of challengers in the market.
These service providers demonstrated a strong regional network presence, comprehensive suite of enterprise cloud and managed ICT service offerings, diverse portfolio of services in areas such as Internet of Things (IoT) and collaboration in the region, as well as a large base of mid and large-sized enterprises, multinational corporations (MNCs), and government clients across Asia Pacific.
This group of “Leaders” is closely followed by "Major Players" in the market which includes regional service providers, such as Telstra and NTT Coms, along with global service providers including Vodafone, Verizon, and Tata Communications. GCX is classified under the “Contenders” group.
"The telco landscape is being reshaped by enterprise demand for this transformation to digital platforms. The impact of key 3rd Platform technologies and accelerators, and the enterprise desire to leverage on these technologies for differentiation in a crowded marketplace is clearly visible,” said Nikhil Batra, Senior Research Manager for Telecom Practice, IDC Asia/Pacific.
"In the short term, SD-WAN and enterprise cloud connect will be important, followed by 5G, software-defined networks, and virtual network services (VNS), with a distinct focus on customer experience throughout. Most of the SPs today have responded to these enterprise requirements by expanding into adjacent areas and providing not just the technology, but the business expertise along with it. However, they continue to differentiate themselves based on their focus and key strategic capabilities," added Batra.
What This Means for Service Providers
Global telecom SPs have progressed steadily over the past few years in their worldwide capabilities. Although no one carrier aspires to be the sole enterprise provider, there is hardly any SP that focuses only on providing connectivity services to enterprises. SPs have branched out to provide cloud federation and brokerage services, managed security, unified communications and collaboration (UC&C), and other managed ICT services and solutions, leveraging their core assets.
IDC enumerates some key differentiators to be successful in this market:
• A well-rounded portfolio of cloud services powered by secure cloud connect offerings
• Leveraging software-defined networking and virtual network services for internal and external efficiencies
• Comprehensive suite of managed security offerings
• Wide range of enterprise mobility, M2M, Big Data, and Analytics solutions
• Network partnerships beyond standard NNI agreements
IDC MarketScape: Asia/Pacific Next-Generation Telcos : 2016–17 Vendor Assessment leverages IDC's MarketScape framework to evaluate 11 leading regional and global telecommunications service providers in Asia/Pacific. The evaluation framework consists of a large variety of parameters such as comprehensiveness of service offerings, datacenter and cloud capabilities, go-to-market strategy, growth strategy, partner ecosystem, and innovation strategy. Service providers are evaluated based on their current capabilities and their strategies for the next 3–5 years that they have set for the enterprise segment in the Asia/Pacific region.
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About IDC MarketScape
IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT (information and communications technology) suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor's position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT and telecommunications vendors can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective vendors.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC