Inverting the pyramid of OSS and network innovation

Back in the earliest days of OSS (and networks for that matter), it was the telcos that generated almost all of the innovation. That effectively limited innovation to being developed by the privileged few, those who worked for the government-owned, monopoly telcos.

But over time, the financial leaders at those telcos felt the costs of their amazing research and development labs outweighed the benefits and shut them down (or starved them at best). OSS (and network) vendors stepped into the void to assume responsibility for most of the innovation. But there was a dilemma for the vendors (and for telcos and consumers too) – they needed to innovate fast enough to win work against their competitors, but slow enough to accrue revenues from the investment in their earlier innovations. And innovation was still being constrained to the privileged few, those who worked for vendors and integrators.

Now, the telcos are increasingly pushing to innovate wider and faster than the current vendor collective can accommodate. It means we have to reach further out to the long-tail of innovators. To open the floor beyond the privileged few. Excitingly, this opportunity appears to be looming.

“How?” you may ask.

Network as a Service (NaaS) and API platform offerings.

If every telco offers consumption of their infrastructure via API, it provides the opportunity for any developer to bundle their own unique offering of products, services, applications, hosting, etc and take it to market. If you’re heading to TM Forum’s Digital Transformation World (DTW) in Nice next week, there are a number of Catalyst projects on display in this space, including:

Zero-touch partnering could make platform ‘utopia’ real for telcos

Packaging Open APIs for NaaS

The challenge for the telcos is in how to support the growth of this model. To foster the vendor market, it was easy enough for the telcos to identify the big suppliers and funnel projects (and funding) through them. But now they have to figure out a funnel that’s segmented at a much smaller scale – to facilitate take-up by the millions of developers globally who might consume their products (network APIs in this case) rather than the hundreds/thousands of large suppliers.

This brings us back to smart contracts and micro-procurement as well as the technologies such as blockchain that support these models. This ties in with another TM Forum initiative to revolutionise the procurement event:

Time to kill the RFP? Reinventing IT procurement for the 2020s: Volume 1

But an additional benefit for the telcos, if and when the NaaS platform model takes hold, is that the developers also become a unpaid salesforce for the telcos. The developers will be responsible for marketing and selling their own bundles, which will drive consumption and revenues on the telcos’ assets.

Exciting new business models and supply chains are bound to evolve out of this long tail of innovation.

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