Gartner Research

CSPs Should Acquire, Rather Than Partner, to Address Capability and Asset Gaps and Grow Revenue

Published: 28 June 2018

ID: G00362533

Analyst(s): Neil Osmond , King-Yew Foong

Summary

Most network-based communications service providers favor partnerships to address capability and asset gaps that hinder revenue growth in adjacent markets, but they're seldom effective. CSP technology business unit leaders should consider acquisitions, using partnerships only in specific situations.

Table Of Contents

Analysis

  • CSPs Must Be Judicious in Pursuing Partnerships
  • More Leading CSPs Are Expected to Consider Strategic Acquisitions
  • Hygiene Factors for Successful Acquisitions
  • Identify Capability and Asset Gaps Quickly and Pursue Acquisitions to Address Them
    • Potential Benefits of Acquisitions
    • Potential Issues With Acquisitions
  • Alternative Approaches to Addressing Capability and Asset Gaps

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