Network automation provides telecom operators with opex savings of up to 40% in three years, says new report by MIT Technology Review Insights

CAMBRIDGE, Mass., May 10, 2019 /PRNewswire/ -- A new study by MIT Technology Review Insights in association with Ericsson finds that telecommunications operators are automating network management and operations as a vital step in their networks' modernization, and ultimately in the digital transformation of their businesses.

Based on interviews with senior network executives at leading operators globally, the report finds that there is an immediate technological imperative for network automation--efficiently addressing the demands of burgeoning data traffic, devices, and new technologies. "This serves a bigger imperative," says Claire Beatty, editor of the report, "enabling the business to understand and meet customer demand for services, and to scale quickly and flexibly as needed."

The key findings of the report are as follows:

    --  Early automation aims are modest, but ambitions will grow. Expectations
        of opex reduction--for example through the elimination of manual
        configuration of processes and reduced time need to fix errors--range
        between 30% and 50%, though usually over a three-year time frame. Better
        capital efficiency is another short-term goal, while some operators see
        the greatest early benefit in improved network resilience.
    --  There is no one-size-fits-all automation pathway. Some operators start
        their automation journey with data center modernization efforts. Others
        focus on automating operational support systems (OSS). Wherever they
        start, operators logically target virtualized functions before deciding
        how to handle legacy systems.
    --  The benefits to 5G could be made clearer. Not all operators highlight 5G
        in building the business case for automation. Operator executives
        interviewed for this report, however, agree that the network efficiency
        enabled by automation is integral to their ability to manage 5G
        complexity and deliver end-to-end 5G services to customers.
    --  Although yet to be realized, hopes for open standards remain strong.
        Open-source development of standardized solutions is widely supported,
        but it needs more commitment from all stakeholders to build critical
        momentum.
    --  People challenges are far tougher than the technology ones. Operators
        are making structural changes to capitalize on automation. These often
        involve merging or redistributing responsibilities across network and IT
        teams. However, retraining existing staff and trying to instill DevOps
        principles are by far the toughest challenges.

Download the report here.

Claire Beatty
Editorial director - international custom content
MIT Technology Review
cbeatty@mit.edu

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SOURCE MIT Technology Review