Telecoms suppliers forced to change strategies

The worldwide recession will cause leading telecoms equipment manufacturers to radically change their product portfolios,...

The worldwide recession will cause leading telecoms equipment manufacturers to radically change their product portfolios, according to analyst group Gartner Dataquest.

Gartner predicts that the economic slowdown will spell the end of the "one-stop-shop" telecoms supplier.

Bhawani Shankar, principal analyst of Gartner's worldwide telecoms and networking group, said the eight leading telecoms suppliers had planned to provide practically all the gear needed by their carrier clients. "None will be able to realise this dream," he said.

Although the leading players will remain, "their product portfolios, market focus and the nature of their relationships with their clients is destined to change radically", he added.

Gartner predicts that large diversified suppliers will transform into suppliers with significantly narrower focus. The market will differentiate between suppliers for the enterprise and those specialising in carriers, which is a marked departure from the vertical business models that most vendors have been trying to adopt.

Worryingly, Gartner said that while all telecoms equipment suppliers are "refocusing", none has a clearly articulated long-term vision.

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