Friday, May 7, 2010

High Performance Service Provider Networks

In a day when Service Providers (SPs) and Managed Service Providers (MSPs) are under extreme pricing pressure due to decreasing average revenue per user and eroding margins, it is increasingly important for them to create new sources of revenue. Generally, this would come in the form of unique business specific services that are proven to provide real value for their customers.

Service Providers and Managed Service Providers need to create broad customization allowing them to capitalize on new high value service opportunities in the enterprise, entertainment and social media market. These customizations entail creating options that allow the customer to pick prepared services rather than buying a costly, fully customized alternative. The service must be experienced rather than used — providing core value in the user application relationship beyond merely delivering data.

Such services and mass customization will broaden the market opportunity service providers and managed service providers can address and will help shift the focus away from the current revenue erosion where today, they are providing the same network service just cheaper and faster.

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