Empowering CSPs, enterprises, and OEMs to strategically reduce OpEx and keep legacy networks and their connections robust
By John Shelnutt, President and CEO of Fortress Solutions
Most digital transformation initiatives focus on innovating to increase customer value while creating a competitive advantage balanced by driving operating efficiency thereby reducing operating expenses (OpEx).
Although these complementary objectives lay a solid foundation for sustainable change and long-term growth; evolving technology trends and market valuation criteria continuously reshape digital transformation strategies.
For example, many Communication Service Providers (CSPs) now build advanced networks to support new customer solutions powered by sophisticated Artificial Intelligence (AI) and Machine Learning (ML) capabilities. Similarly, enterprises of all sizes allocate more resources to bolster core business innovation and accelerate growth, while OEMs further streamline operations to expand profit margins in highly competitive markets.
In this article, we explore how outsourcing legacy network operations to Managed Service Providers (MSPs) enables CSPs to significantly reduce OpEx and prioritize the deployment of advanced networks and services. We will also discuss the advantages of MSPs building and managing new private enterprise networks, highlighting mission-critical applications such as border security, smart logistics, and emergency response.
Finally, we will explain how offloading back-office support helps OEMs cut costs, free up budget to develop differentiated products, and accelerate time to market. We describe how to take variable workloads that today require fixed costs and put that into a partnership model, so margin contribution is shared.
Driving New Economics for Legacy Networks
Fiber, copper, and coaxial legacy networks support a wide range of applications, including voice calls, video streaming, e-commerce transactions, and wireless communications. MSPs play a crucial role in transforming the cost structure of these legacy networks, potentially reducing OpEx by 10% to 50% along with gains in network integrity with a trifecta of consolidated services: repair, three-tiered technical support, and logistics.
Ed Chan, EVP of Crown Castle and former Verizon CTO stated, “It is now a necessity to use a consolidated supplier for all the network operators if they want to get their own internal headcount efficient while maintaining reliability.”
Some MSPs directly manage entire application-specific network systems for CSPs, including fiber-based Internet Protocol Television (IPTV) headends, which serve as the central points for receiving and distributing TV signals. In this scenario, the MSP handles ticketing and troubleshooting for all IPTV issues, rapidly sourcing, repairing, and replacing hard-to-find legacy hardware. MSPs also configure firmware and software for transport systems, optical systems, and DSL, ensuring seamless integration with IPTV and other legacy infrastructure. Importantly, they oversee inventory management, efficiently handling forward and reverse logistics to facilitate on-time retrieval and delivery of key IPTV components, such as set-top boxes, encoders, transcoders, and network interface cards (NICs).
As an example, a tier 1 CSP did a directed headcount reduction and moved maintenance engineering support including repair to Fortress Solutions. This was done by partitioning a slice of their legacy video network so that the end of life/end of service network platforms stayed robust. Fortress Solutions also provided troubleshooting via Advanced Technical Support (ATS) which streamlined through multi-vendor / multi-domain consolidation which resulted in driving legacy cost performance curves along with significant OpEx savings.
Additional examples of outsourced legacy network management include hybrid fiber-coaxial (HFC) networks, commonly deployed for broadband internet and cable television services; metro Ethernet systems, typically used for high-speed data transmission across cities; and Synchronous Digital Hierarchy/Synchronous Optical Networking (SDH/SONET) infrastructure for long-distance data transport. MSPs also administer voice over IP (VoIP) equipment and maintain older microwave radio systems, often employed for point-to-point communication links between remote locations.
Just like CSPs, many enterprises adopt cost-effective outsourcing models as part of their digital transformation initiatives—with MSPs directly overseeing specific services, systems, and functions alongside technical support, repairs, and logistics.
Building and Managing Private Networks and Services
MSPs help enterprises save money and time by efficiently building and managing new private networks that seamlessly integrate wired and wireless technologies. Many fiber-optic network backbones connect to a mix of Ethernet switches, Wi-Fi Access Points (APs), and LTE or 5G radios. Together with System Integrators (SIs), MSPs ensure consistent, high-speed connectivity across various frequencies and systems, including millimeter wave (mmWave), Citizens Broadband Radio Service (CBRS), and Low-Power Wide-Area Networks (LPWAN).
MSPs scale their services to effectively support real-time data processing, inference, and decision-making for edge AI devices like cameras and sensors, enabling smarter, more responsive private networks for mission-critical use cases such as:
- Military bases and border security: Cameras and sensors mounted on solar-powered monopoles connect through private MSP-managed wireless mesh networks, leveraging advanced imaging software for monitoring, detection, and identification.
- Drone fleets: Drones connect to private wireless network infrastructure provided by tower companies, while MSPs manage the aerial fleet, delivering a comprehensive set of services, including pilot scheduling software, preventative maintenance and repair, and record keeping.
- Smart logistics and warehouses: IoT edge devices and Automated Guided Vehicles (AGVs) track inventory, optimize storage, and streamline order fulfillment. Operating over MSP-managed wireless networks, these technologies integrate with advanced AI systems.
- First responders and emergency services: Resilient, portable network equipment ensures continuous connectivity during emergencies. Administered by MSPs, these systems integrate real-time data from edge devices, such as body cameras and environmental sensors, bolstering situational awareness and enabling rapid response times.
Delivering Back-Office Support
Outsourcing back-office support to MSPs is a key component of many digital transformation initiatives, particularly for enterprises and OEMs struggling with fixed costs tied to variable workloads. To increase efficiency and reduce OpEx, MSPs take on critical tasks such as kitting, configurations, and engineering change orders. They also manage regulatory compliance, including industry certifications and audit records, along with financial processing, inventory and vendor management, and technical documentation.
MSPs further improve back-office efficiency by applying AI and ML to tasks like demand forecasting, supply chain optimization, and real-time data analytics, significantly reducing manual workloads and minimizing errors. Additionally, MSPs provide advanced technical support (T2/T3) with 24/7/365 availability, ensuring comprehensive troubleshooting capabilities for crucial systems. By offloading core back-office functions along with technical support and automating manual processes, OEMs and enterprises eliminate associated variable costs, streamline profit and loss (P&L) statements, and sharpen their focus on generating revenue and managing customer relationships.
The Fortress Solutions Advantage
Fortress Solutions plays a crucial role in empowering CSPs, Enterprises, and OEMs to implement cost-effective, end-to-end digital transformation initiatives. Our extensive portfolio supports a growing number of services and solutions, including managing critical legacy networks and building and maintaining private LTE, 5G, and wired networks. Fortress Solutions also offers the most expansive solution set for comprehensive back-office planning, with AI-driven support enabling data-based decision-making. Whether sourcing hard-to-find components, fielding SMEs with decades of accumulated technical knowledge and expertise, or optimizing networks and mission-critical applications, Fortress Solutions enables companies of all sizes to reduce OpEx and achieve sustainable growth in dynamic and highly competitive markets.
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