INDUSTRY VIEW
OPPORTUNITIES AND CHALLENGES FOR COMMUNICATION SERVICE PROVIDERS
AMR ALASHAAL , REGIONAL VICE PRESIDENT MIDDLE EAST , A10 NETWORKS
Amr Alashaal at A10 Networks presents the results of a recent survey into what is driving growth for global CSPs , how cloud adoption has become a driver , and new criterions in equipment purchase .
2023 will be a year of growth within the communication service provider , CSP market according to new data from A10 Networks ’ latest research . Its biannual Global Communication Service Provider Insights report was undertaken to understand the priorities , expectations , and perspectives of senior IT professionals in CSPs across the globe by interviewing 2,750 senior IT professionals in a variety of roles across 21 countries .
A10 Networks found that despite supply chain struggles and economic uncertainties , providers are expecting consistent growth in traffic which they will match by investing in improved security and coverage .
This growth is the driving cause of planned reforms , but it is not the only factor encouraging CSPs to make changes . The need to close the digital divide by expanding coverage to previously underserved communities , to counter increasingly sophisticated cyberattacks by enhancing cybersecurity measures , and to keep up with the ever-changing global compliance and regulations landscape are catalysts for current and future investments .
Market growth
Although there are several key themes from the report , the central one , and the one driving other investments and reforms , is the expectation of demand . 99 % of the CSPs surveyed expect to see growth in traffic volumes in the coming two to three years , with almost half , 48 % expecting traffic to rise by between 50 and 75 %, while one in five expects to see growth of more than 75 %.
The pandemic surge in traffic that stretched networks to their limits may have been a one-off , but coming growth will be more consistent and sustained . Confidence is now the main driver of reform according to those surveyed , which in turn will lead to vital improvements in network security .
This optimism contrasts with our 2021 CSP report , which illustrated how the pandemic led to economic insecurity and therefore a pause in investments and expansions – even in the face of surging demand .
Connection inequality
Providing a secure and reliable connection to hard-to-reach or previously economically unviable areas is crucial to reducing inequality and ensuring future growth – and so is a key area of focus for CSPs in 2023 .
The survey showed that 69 % of respondents aim to expand their networks to unserved and underserved communities . Among these , half are expecting to achieve an uplift of more than 10 % on their current subscriber base and 19 % are expanding for an uplift of more than 50 %.
Improving security
In the last survey , we found that much of 2021 ’ s investment focused on basic cyber hygiene such as upgrading firewalls . This year , however , respondents were aiming for a more mature , multilayered , and defence-in-depth approach – where DDoS detection and monitoring is a much higher priority and is complemented
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