Telecom Hardware Moving Toward “Buy”

Continually refining standards and the development of a healthy supplier ecosystem have steadily moved the telecom industry from proprietary to standards-based designs. As a result, network equipment providers (NEPs) are now in a position to avoid hardware design altogether and focus their development efforts on software-based value-added features. An evaluation of the make-versus-buy decision that considers the entire product lifecycle shows significant advantages on the “buy” side for everything from modules to entire systems.

The telecommunications market has experienced enormous changes in the last few decades, and the pace of its evolution is increasing. Twenty years ago vendors could reasonably expect that their system design would have an extended market lifetime. Now, however, demands for new communications capabilities are constantly arising. Moore’s Law of computer technology advances seems to apply equally well to other areas of innovation: new capabilities seem to be appearing at an exponentially-growing rate.

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