Startups beat Ericsson, Huawei, Nokia in telco cloud market
In this article (4)
The telco network is starting to provide opportunities for much smaller companies and even startups are now winning business against the established giants Ericsson, Huawei and Nokia, according to ABI Research.
Findings of ABI Research’s Telco Cloud Hot Tech Innovators report show 15 companies that are creating new types of innovation and bringing fresh ideas to the telco market.
These companies include cloud players, new entrants, network specialists, and software developers, which were previously barred from entering the telecoms market.
“The 15 companies we have profiled illustrate a completely new way of developing network technology. In some cases, they have even won business against Tier-1 vendors, which are 100 times their size, have 100 times their R&D budget and have a formidable sales organization,” said Dimitris Mavrakis, research director at ABI Research.
“These companies win with software skills, cloud computing, open sourcing, and being free of a legacy business to support,” said Mavrakis.
The 15 companies ABI Research has profiled, and the new wave of startups go directly opposite the established norm as some of them are 10-people companies and rely on open source projects to win business.
ABI Research said that 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.
Questions & Answers
Q.What types of companies are now succeeding against the traditional telecoms giants?
What types of companies are now succeeding against the traditional telecoms giants?
The companies making inroads include cloud players, new entrants, network specialists, and software developers. These businesses were previously unable to enter the telecoms market due to the dominance of established players like Ericsson, Huawei, and Nokia.
Q.How are these smaller companies managing to win business against much larger, established vendors?
How are these smaller companies managing to win business against much larger, established vendors?
These companies succeed by utilising software skills, cloud computing, and open sourcing. They also benefit from not having a legacy business to support, which allows them to be more agile and innovative in their approach to developing network technology.
Q.What did ABI Research say about the size of some of these successful new companies?
What did ABI Research say about the size of some of these successful new companies?
ABI Research noted that some of these new companies are as small as 10 people and often rely on open source projects to secure business. They operate in a way that is contrary to the established norms within the telco market.
Reader pulse
Will these startups disrupt the telco market significantly?
21,220 votes so far