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ICT investment trends in telco/service providers ; Enterprise ICT spending patterns through to the end of 2016

ICT investment trends in telco/service providers ; Enterprise ICT spending patterns through to the end of 2016

Summary

The rise in the use of wireless technologies in the context of stiff competition within the telecoms industry is driving telcos to explore and invest in emerging technologies such as network functions, virtualization, data centers, and virtual private cloud, among others

Key Findings

Kable’s survey shows that in order to harness potential benefits including consumer satisfaction, enhanced revenue streams, and cost savings, telcos are actively investing in core technology areas.

With respect to investments in the core areas of ICT expenditure, including hardware, software, and IT services, the survey reveals that respondents are increasing their investments in clients, software licenses, and application development & integration services.

Meanwhile, cutting costs, increasing revenues, and improving efficiencies are the primary business objectives for telcos.

Synopsis

ICT investment trends in telco/service providers (telcos) presents the findings from a survey of 145 telcos regarding their Information & Communications Technology (ICT) investment trends. The survey investigates how telcos currently allocate their ICT budgets across the core areas of enterprise ICT expenditure: hardware, software, IT services, communications, and consulting.

The report illustrates the core technologies telcos are investing in, including security products, green IT & virtualization, and mobility. Understand the approach adopted by telcos to purchase technology and get a better insight into ICT vendors and services providers when pitching their solutions to telcos.

In particular, it provides an in-depth analysis of the following:

How ICT budgets are set to change in 2015 in terms of their overall size

Allocation across the core elements of IT spend, including hardware, software, services, communications, and consulting

Distribution of ICT money in areas such as the networks, applications, service desk, and data centers

Which ICT functions telcos are interested in outsourcing

Telcos’ investment priorities based on their budget allocations across core technology categories such as security products, green IT & virtualization, and mobility

Factors that are influencing telcos’ investments in each technology category

How telcos’ IT budgets are currently allocated across various segments within a technology category

Telcos’ distribution of their ICT budget across various segments within a technology category

Vendor satisfaction ratings for various core and advanced technology categories

Insight into telcos’ preferred buying approaches

Business and IT objectives that telcos are looking to achieve through their IT investment strategies

Factors that are influencing telcos’ decisions to select an ICT provider

Reasons To Buy

Understand how the telcos ICT landscape is set to change in 2015 to prioritize your target market

Comprehend how ICT money are being allocated by telcos in specific geographies and size bands to improve your market penetration

Make effective business decisions by recognizing the opportunities within each of the core areas of ICT spend (hardware, software, IT services, telecommunications, and consulting)

Realign your sales initiatives by understanding the current strategic objectives of telcos

Enhance your market segmentation with the included, detailed breakdown of opportunities within selected technology categories (security products, green IT & virtualization, and mobility)

Prioritize your focus areas by understanding which factors are influencing telcos’ decisions when selecting an ICT provider

Understand the changes in customers’ priorities and identify the business and IT objectives that telcos are looking to achieve through their ICT investment strategies


1 Trends in ICT budgets
1.1 Introduction
1.2 Survey demographics
1.3 ICT budget changes
1.4 ICT budget allocation by core technology area
1.4.1 Hardware budget breakdown
1.4.2 Software budget breakdowns
1.4.3 Third party IT services expenditure
1.4.4 Cloud computing budget
1.5 ICT budget allocation by function
1.6 Outsourced IT functions
2 ICT investment priorities and vendor satisfaction
2.1 Introduction
2.1.1 Security products
2.1.2 Green IT & virtualization
2.1.3 Mobility
3 ICT procurement trends
3.1 Introduction
3.2 Business objectives and IT objectives influencing IT investment strategy
3.3 ICT provider selection
4 Summary
4.1 Telcos/service providers are investing in various ICT domains in 2015 to achieve digital advantage
5 Appendix
5.1 Definitions
5.2 Further reading
5.3 Contact the authors
List of Figures
Figure 1: Telco/service providers - ICT survey geographic breakdown
Figure 2: Telco/service providers ICT survey breakdown by size band (number of employees)
Figure 3: Recent and expected ICT budget changes among telcos
Figure 4: Telco/service providers’ (external) ICT budget allocation, 2014 and 2015
Figure 5: Telco/service providers’ average hardware budget allocation
Figure 6: Average allocation of software budgets in telecom market
Figure 7: Telco/service providers’ average IT services budget allocation
Figure 8: Telco/service providers’ average cloud computing budget allocation by technology
Figure 9: Telco/service providers’ average cloud computing budget allocation by implementation type
Figure 10: Telco/service providers’ ICT budget allocation by function, 2014 and 2015
Figure 11: Outsourced IT functions – Telco/service providers’ current and future outsourcing priorities
Figure 12: Security products – Telco/service providers’ current and future investment priorities
Figure 13: Security products – selected primary provider and vendor satisfaction among telcos
Figure 14: Green IT & virtualization – Telcos’ current and future investment priorities
Figure 15: Green IT & virtualization – selected primary provider and vendor satisfaction among telcos
Figure 16: Mobility – Telcos’ current and future investment priorities
Figure 17: Mobility – selected primary provider and vendor satisfaction among telcos
Figure 18: Business objectives and IT objectives which influence telcos’ IT investment strategy
Figure 19: Factors influencing telcos' decision to choose an ICT provider

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