Nokia Study Reveals Network API Exposure Is A Top Priority
Nokia recently commissioned a study conducted by Analysys Mason that revealed the vast majority of communication service providers (CSPs) – 73% – view network API exposure as a top 5 priority. CSPs use open APIs and SDKs to help software developers create applications that will provide customers with innovative 5G services.
Software developers, in particular, are excited about the potential of network-platform-as-a-service (NPaaS) – also referred to as Network-as-Code or programmable network, as they explore ways it can help them create new and innovative applications for customers. The study found that 60% of developers are interested in writing software programs specifically to enable them to enrich applications with new services, such as improved quality on demand.
Incorporating network functionality into application business logic can greatly accelerate a growing market trend. As companies aim to make their business assets available through Software-as-a-Service (SaaS) model using internal and external APIs, developers who can integrate network functionality are in high demand.
The shift towards a SaaS-based software development approach is crucial to many organizations’ digital transformation initiatives. This approach improves agility and efficiency in processes and allows for monetizing internal capabilities. As more companies provide and consume SaaS services, the application ecosystem becomes more robust. With an increase in ecosystem participants, the innovation potential grows as companies can assemble each other’s services in new and creative ways.
Ultimately, the ecosystem benefits from the increased value created for all stakeholders. In fact, between 2022 and 2026, the market for services enabled by telecom APIs is forecast to grow from $12 billion to $34 billion.
What Is NPaaS or Network-as-Code?
Nokia’s Network as Code concept seeks to streamline network capabilities, making them an integral part of applications. This approach represents a paradigm shift that creates value in the telecommunications industry behind 5G. By simplifying network capabilities, Network as Code allows for developing a new business and technology framework that makes distributed service chains more accessible to the mainstream in telecoms.
This approach also facilitates collaboration with developers and technology partners, laying a strong foundation for value creation. Network as Code contributes to creating new business value by promoting the adoption of 5G cloud-native technologies, promoting openness, and accelerating the trend toward programmability in today’s telecommunications landscape.
Benefits of Network-As-Code
The Network as Code (NaC) approach presents a valuable opportunity for CSPs and enterprises as they implement their 5G networks. NaC allows for the profitable exploitation of the software-based capabilities inherent in the network, a crucial objective for these organizations.
Moreover, NaC fosters collaboration between CSPs and developers, unlocking the potential of network-critical operational applications and generating fresh value from their networks.
Considerations For Migrating to NPaaS
Communication Platform-as-a-Service (CPaaS) has paved the way for programmable access to messaging, voice, and video capabilities across various digital ecosystem applications. For instance, an Uber passenger can now contact their driver directly via the Uber app. However, while CPaaS represents a strong start in this direction, it limits CSPs’ potential to generate revenue from the underlying voice, video, and messaging services that CPaaS provider APIs rely on.
Unlike CPaaS platforms, which are over 10 years old, an NPaaS platform needs to be designed using a cloud-native architecture that can support the 5G network capabilities available today and those that will be rolled out toward 6G networks in the future. The platform should provide intent-based interfaces and intelligent orchestration to simplify developer access to complex network capabilities spanning domains and functions. Additionally, it should be capable of executing a broad range of APIs promptly at a high scale, regardless of the number and complexity of concurrent transactions it handles.
Above all, the NPaaS platform must offer value to developers, CSPs, and enterprises as Industry 4.0 transformation progresses. It is essential to build a platform enabling stakeholders to leverage advanced technologies while creating new business opportunities and revenue streams.
Developers Find Current Telecom APIs Too Cumbersome
The involvement of software developers is becoming increasingly crucial for the successful creation and delivery of 5G services. Telecom service APIs play a vital role in monetizing 5G by enabling developers to access network functionality and data to develop new use cases for enterprises and consumers. However, research indicates that around half of the developers encounter network issues – including the need for more insight and control over how network quality affects the performance of their applications – when trying to utilize cloud and Software-as-a-Service (SaaS) applications. Additionally, 76% of software developers believe that network APIs should be user-friendly and state that the current complexity and lack of API documentation from CSPs deter them from using network APIs.
To remediate these concerns, CSPS must ensure their network APIs are accessible, user-friendly, and accompanied by comprehensive documentation to encourage developer adoption and enable successful 5G service delivery.
What Is Telecom Software-as-a-Service (SaaS)?
Telecom SaaS is a service that offers a subscription-based business outcome delivered through cloud-native software. This approach offers a flexible and cost-effective solution for communication service providers looking to leverage advanced technologies while streamlining their operations.
The SaaS model allows communication service providers to access the software they need without purchasing it outright. Instead, they can obtain it through a usage-based subscription, typically paid on a monthly or yearly basis.
Benefits of Telecom SaaS
Faster Time To Value
SaaS enables telecom providers under constant pressure to innovate and launch services quickly with the ability to deploy new services and make changes to their network infrastructure in a fraction of the time.
Cost-Effectiveness
SaaS solutions eliminate the need for upfront purchases and maintenance programs, and – since they are typically offered on-demand – you only pay for what you use.
Additionally, adopting a SaaS business model accelerates the procurement, installation, and setup processes and enables CSPs to experiment with a wide range of services through limited-time subscriptions.
Greater Business Agility
Telecom SaaS solutions are inherently scalable, meaning they can grow with your business. Capacity can be easily increased or reduced as your business needs change, and features can be added or removed without expensive upgrade requirements.
Better Reliability
Publicly hosted SaaS solutions are maintained and updated by the provider, eliminating the need for your business to handle time-consuming and expensive software updates and maintenance.
ESG Acceleration
Optimized asset utilization affords telecom SaaS CSPs better control over their expenses, network usage, and energy consumption, which can not only reduce costs but promote sustainability and ultimately enhance ESG performance and reputation.
Secure By Design
Like traditional on-premises software deployments, Telecom SaaS has comprehensive, rigorous, and highly evolved security measures and procedures in place.
Caroline Chappell, Partner at Analysys Mason, said, “CSPs can generate incremental revenue through collaboration with developers and other CSPs to create a larger ecosystem. CSPs should strongly consider contributing their APIs to a third-party, network-platform-as-a-service (NPaaS), engaging with developers, and building an ecosystem that includes other CSPs to prevent fragmentation that could hinder the viability of this opportunity.”
Shkumbin Hamiti, Head of Network Monetization Platform, Cloud and Network Services, at Nokia, said: “In the 5G world, a new digital ecosystem is emerging, with multiple service chains of hyperscalers, infrastructure, networks, and applications being created on a case-by-case basis to create end-user value. This research underscores the appetite to drive this ecosystem forward, but also highlights the work to be done to facilitate a deeper understanding between CSPs and developers and the required work between them.”
About Nokia
As a B2B technology innovation leader, Nokia is pioneering networks that sense, think and act by leveraging our work across mobile, fixed, and cloud networks. In addition, they create value with intellectual property and long-term research led by the award-winning Nokia Bell Labs.
Service providers, enterprises, and partners worldwide trust Nokia to deliver secure, reliable, and sustainable networks today – and work with us to create the digital services and applications of the future.
About Infinity Technology Solutions
Infinity Technology Solutions specializes in broadband and critical communications infrastructure development. We help our channel partners create private wireless networks 4G/5G, microwave backhaul systems, IP/MPLS, and optical networking technology.
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