Our research indicates that the LSO market is going to be large – approaching billions of dollars by the year 2020 – but, more importantly, it will be very strategic. The providers that can deliver more flexible and agile services will be perceived as the leaders. In addition, a move to LSO platforms will improve business workflow and operations efficiencies. Many service providers and software companies are betting their futures on it. The move to this services model may prove to be “table stakes” for the service providers of the future.
You should now have a good picture of why global operators want LSO, what it is, and some paths to get there. The next question might be: How big is it?
By gathering data and feedback from a wide range of service providers and telecom software vendors, we’ve built a market forecast. For the purpose of this report, we define this as an LSO market for enterprise network services in the carrier segment, including IP-VPN, NFV, and mobile backhaul. These groups include most enterprise networking Ethernet connectivity.
The market is still in the very early stages of development. The goal of our forecast is to project how large a wider LSO market, which encompasses software development and an evolution of legacy OSS, could be.