TELECOM
Indian service providers are among the most confident of 12 global markets surveyed by Ciena on the revenue potential of AI-driven network services, with 67% strongly agreeing such services will be a primary driver of revenue growth over the next three to five years, according to the survey.
The research was conducted by Censuswide on behalf of Ciena among 1,200 telecommunications providers, wholesale fiber network operators and regional service providers across 12 markets, including 100 respondents in India, the company said. Indian service providers identified three priorities, according to the findings: modernizing network infrastructure, delivering more dependable performance for enterprises, and creating new business models around edge computing, cloud connectivity and physical AI.
Alongside the 67% who strongly agreed AI-driven services will drive new revenue, a further 27% somewhat agreed, according to Ciena. Data center connectivity is also expected to play a larger role, the survey found, with 98% of respondents expecting multi-operator fiber network services to contribute to revenue from connecting distributed AI compute clusters over the next three years, including 48% who see them as a significant contributor.
Ninety-three percent of Indian respondents agreed that next-generation optical technology, including higher-capacity wavelengths and power-efficient coherent optics, is critical to making AI connectivity services more profitable and competitive, according to Ciena. Eighty-eight percent said optical network upgrades are urgently needed to deliver the reliable, low-latency performance enterprises will expect from premium AI services, including 38% who said major upgrades are needed immediately. Ninety-four percent considered advanced network automation important or absolutely critical to capturing AI-driven opportunities, the survey found, pointing to demand for networks that can adapt quickly as AI traffic patterns shift.
Ninety-six percent of respondents said guaranteed low-latency performance is very important or absolutely critical to generating revenue from enterprise edge deployments, according to Ciena, while 37% pointed to stable performance and low jitter as the highest-potential area for premium services.
Physical AI ecosystems, including autonomous industrial robots, machine vision and remote-control systems, also drew favorable responses, the survey found: 93% of respondents saw moderate or high revenue potential from physical AI for private network and edge computing offerings, while 59% expected it to account for more than 15% of total AI enterprise revenue within five years.
Indian service providers are also exploring more flexible commercial models as enterprises move larger datasets between cloud environments for AI processing, according to Ciena, with 58% planning to generate revenue from multi-cloud connectivity management and the same share expecting revenue from consumption-based bandwidth services. Services hosted closer to enterprise users and devices, including GPU-as-a-Service, edge compute, localized AI inference and private wireless, are also expected to become meaningful revenue drivers, the survey found, with 88% of Indian respondents expecting these services to generate at least 10% of total enterprise revenue over the next three years, including 35% who expect more than 20%.
Gautam Billa, vice president of solutions engineering and chief technology officer for Asia Pacific, India and Japan at Ciena, said the findings reflect a shift in focus among Indian providers. "After going through one of the fastest 5G roll outs globally, Indian service providers are now shifting focus to AI infrastructure builds and AI monetization," he said. "AI momentum continues to escalate, and the survey findings point to growing confidence in the revenue potential of AI-driven services."
The research was conducted by Censuswide on behalf of Ciena among 1,200 telecommunications providers, wholesale fiber network operators and regional service providers across 12 markets, including 100 respondents in India, the company said. Indian service providers identified three priorities, according to the findings: modernizing network infrastructure, delivering more dependable performance for enterprises, and creating new business models around edge computing, cloud connectivity and physical AI.
Alongside the 67% who strongly agreed AI-driven services will drive new revenue, a further 27% somewhat agreed, according to Ciena. Data center connectivity is also expected to play a larger role, the survey found, with 98% of respondents expecting multi-operator fiber network services to contribute to revenue from connecting distributed AI compute clusters over the next three years, including 48% who see them as a significant contributor.
Ninety-three percent of Indian respondents agreed that next-generation optical technology, including higher-capacity wavelengths and power-efficient coherent optics, is critical to making AI connectivity services more profitable and competitive, according to Ciena. Eighty-eight percent said optical network upgrades are urgently needed to deliver the reliable, low-latency performance enterprises will expect from premium AI services, including 38% who said major upgrades are needed immediately. Ninety-four percent considered advanced network automation important or absolutely critical to capturing AI-driven opportunities, the survey found, pointing to demand for networks that can adapt quickly as AI traffic patterns shift.
Ninety-six percent of respondents said guaranteed low-latency performance is very important or absolutely critical to generating revenue from enterprise edge deployments, according to Ciena, while 37% pointed to stable performance and low jitter as the highest-potential area for premium services.
Physical AI ecosystems, including autonomous industrial robots, machine vision and remote-control systems, also drew favorable responses, the survey found: 93% of respondents saw moderate or high revenue potential from physical AI for private network and edge computing offerings, while 59% expected it to account for more than 15% of total AI enterprise revenue within five years.
Indian service providers are also exploring more flexible commercial models as enterprises move larger datasets between cloud environments for AI processing, according to Ciena, with 58% planning to generate revenue from multi-cloud connectivity management and the same share expecting revenue from consumption-based bandwidth services. Services hosted closer to enterprise users and devices, including GPU-as-a-Service, edge compute, localized AI inference and private wireless, are also expected to become meaningful revenue drivers, the survey found, with 88% of Indian respondents expecting these services to generate at least 10% of total enterprise revenue over the next three years, including 35% who expect more than 20%.
Gautam Billa, vice president of solutions engineering and chief technology officer for Asia Pacific, India and Japan at Ciena, said the findings reflect a shift in focus among Indian providers. "After going through one of the fastest 5G roll outs globally, Indian service providers are now shifting focus to AI infrastructure builds and AI monetization," he said. "AI momentum continues to escalate, and the survey findings point to growing confidence in the revenue potential of AI-driven services."
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