Noting that 5G deployments are now in a state of proliferation, analyst firm ABI Research expects the importance of network slicing for the enterprise domain to grow, with demand for 5G slicing propelled mainly by heavy industry verticals.
ABI says there are three predominant business drivers for 5G slicing. First, it notes that new services can be deployed with little or no disruption to existing services and that with today’s networks, service agility is a challenge because the introduction of new services necessitates reconfiguration of underlying networks.
Second, ABI believes verticals can optimise network efficiency with potentially lower costs, suggesting that a shared network infrastructure used across multiple slices promotes better resource utilisation and can, in theory, reduces integration scope and complexity.
Third, ABI says 5G slicing can enable vertical partners to bring to market a wider range of services based on customised service-level agreements.
As a result, according to ABI Research’s 5G Network slicing and industry verticals market data report, 5G network slicing will generate revenues of more than $20bn by 2026. The analysis says much current discussion focuses on how various industry verticals can alleviate the operational complexity of doing business with 5G network slicing.