Omdia view
Summary
At the core of modern digital business increasingly sit what Omdia defines as Tier 1 Enterprise Operating Platforms. These platforms, delivered by the likes of Microsoft, Salesforce, and ServiceNow, orchestrate cross-functional workflows and systems of record across critical domains, such as IT, HR, finance, customer, and operations. An economy is emerging around these platforms, and telcos that act on the opportunity now will be well positioned to play an important role within it.
How telcos can evolve from connectivity providers to key platform players
As enterprises deepen their investment in platform economies, the fragmentation between applications, processes, and connectivity will continue to erode. Connectivity will become a decisive factor in platform success, and this is where telcos must learn to participate effectively in these emerging ecosystems. One of the most promising entry points is through network APIs, which expose network capabilities as programmable functions within platform ecosystems. By embedding capabilities, such as quality of service, subscriber identity module (SIM)-based identity, and location, telcos can evolve from being mere connectivity providers to becoming critical enablers of the enterprise workflow value cycle.
Encouragingly, telcos already deliver much of this connectivity plumbing through their networks. Historically, however, enterprises accessed it only indirectly via SIMs, devices, or connectivity contracts. Network APIs change this dynamic as they expose programmable network capabilities directly into workflows. This means that connectivity no longer remains a complex network add-on but becomes a new workflow building block, one that AI and automation platforms can orchestrate in real time.
Where telcos fit in emerging enterprise platform ecosystems
To understand where telcos fit in the emerging enterprise platform ecosystem, it helps to distinguish the complementary layers of the modern platform stack. Omdia’s two-layer platform model separates:
- The orchestration and decision logic layer, which centered on determining what should happen
- The execution and verification layer, which ensures those decisions and outcomes are carried out correctly and securely
The orchestration and decision logic layer is the capability hub where enterprise operations are managed and coordinated. Its focus is on defining what should happen. Capabilities, such as automation tools, AI assistants, and orchestration engines, apply business rules, logic, and contextual data across processes, transactions, and workflows, ensuring that actions and decisions are guided by context and policy rather than fragmentation.
This orchestration layer is critical because it determines how processes run end-to-end, ultimately shaping how platforms support business operations. This means that tasks and activities like routing requests, enforcing compliance policies, escalating issues, and surfacing insights, can occur in real time, across different functions, without fragmentation slowing the path from initiation to action. Increasingly, platform vendors are surfacing these capabilities through platform command centers that converge human inputs and machine intelligence to execute tasks and adapt workflows to changing business conditions.
The execution and verification layer is focused on ensuring that outcomes are delivered and validated. This is where decisions and processes are validated and undertaken. This layer ensures that actions are undertaken and acted on securely and accurately. This is the technical plumbing that makes orchestration possible. This is where data is written, transactions are processed, and compliance and policies are applied. Increasingly, it is also where capabilities like network APIs play a role, as programmable infrastructure can be extended into the wider platform ecosystem.
For example, in a customer support workflow, the orchestration and decision logic layer is where capabilities like workflow automation and AI are used to determine that a call must be initiated with a customer who has escalated an issue. The execution and verification layer then ensures this happens, using telco network APIs to guarantee call quality, confirm the customer’s SIM-based identity, and verify location context for compliance. For telcos, this means network APIs offers them a way to deliver enterprise value beyond just connectivity, by becoming integral to both the execution and assurance of enterprise workflows.
The $380bn platform opportunity
The commercial prize for telcos is significant, which is why many that Omdia engages with are now taking the opportunity more seriously. In terms of total addressable market, Omdia estimates that the Tier 1 enterprise platform economy alone, anchored by players including Microsoft, Salesforce, ServiceNow, Oracle, and SAP, will exceed $380bn by 2028. That figure does not even account for the massive Tier 2 opportunity of disruptors, vertical specialists, and workflow platforms that will integrate with these core ecosystems to further enrich business workflows.
Collectively, this represents one of the fastest-growing revenue pools in the enterprise technology space. For telcos, network APIs provide an important access point into this growing platform economy. From a tactical perspective, these APIs also transform telcos from simply carriers of traffic into embedded participants in these ecosystems.
When exploring specific monetization paths, Omdia recommends that telcos focus on:
- Consumption-based revenue: Network APIs can be commercialized in ways similar to cloud services (e.g., per call, subscription, or data feed). This model also supports commercialization through popular partner marketplaces, such as AWS and Azure.
- Embedded platform approach: This is where network APIs are richly integrated into enterprise workflows operating across core platforms, such as Microsoft, ServiceNow, and Salesforce. For example, telco number-verification may be used within a provisioning or employee support workflow. Revenue sharing or integration fees become the primary source of telco revenue.
- Outcome-based: Revenue models based on outcomes are desirable for enterprises but challenging for telcos and vendors to monetize. However, when outcomes are well-defined and repeatable, they present an important monetization opportunity.
- Services and enablement: This is where telcos, usually through system integrators and other partners, sell services that have APIs embedded within them. Revenue is generated through the delivery of these services. For example, a quality of service (QoS) API for calls or collaboration is used as part of a healthcare service package.
How telcos can capture the platform opportunity
First, telcos must standardize and scale their network API offerings and consumption approaches across markets and geographies. Initiatives, such as the GSMA Open Gateway and the CAMARA open-source project are important because they provide a level of standardization and common frameworks that developers and enterprises need to leverage network APIs effectively.
Second, network APIs must be made easily available within the Tier 1 core operational platforms that businesses are increasingly investing in. Realizing monetization opportunities means distribution through these tools as workflow value-add is vital, along with broad distribution through hyperscaler marketplaces.
Third, telcos must address the biggest friction points that currently exist between platform developers and telcos. Specifically, major platform players need telcos to deliver simple, transparent, and usage-based cost models around APIs. Traditional pricing structures and regional silos risk holding telcos back from realizing these new opportunities; platform players want cloud-style commercial models and relationships.
Appendix
Author
Adam Holtby, Principal Analyst, Workplace Transformation
