"In the Cloud" Information Technology Creates New Opportunities for Network Service Providers
Source: Cisco Systems
For the past several years, incumbent telecommunications Service Providers (SPs1) have faced a decline in core legacy revenues, such as fixed-line voice and legacy packet data services in the enterprise and small- and medium-sized business (SMB) markets, which has forced them to move into adjacent markets primarily through acquisitions. Data and voice mobile services and unmanaged fixed data services fueled revenue growth for integrated SPs, but have left a gap in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). As a result, SPs have been retooling themselves to move "up the stack" into adjacent market spaces in the information technology value chain such as data center, unified communications, security, other IT-centric services, and advisory services.