Trends Report

AT&T Must Move From Network-Centric Services To End-To-End CSD Solutions

SWOT Analysis: AT&T, Q2 2008

May 12th, 2008
Chris Townsend
With contributors:
Thomas Mendel, Ph.D. , Janine Liu


AT&T's long history and expertise are undeniable, with more than 120 years of experience providing telecom services. For today's Converged Service Delivery (CSD) journey, however, this is both a blessing and a curse: AT&T is understandably strong in network support and managed services, but it lacks sufficient IT capabilities. To build the necessary computing depth, AT&T will need to struggle against its reputation and acquire experience and reference accounts in areas like systems integration, application development, utility data center transformation, and managed services. Only then will it be able to build a comprehensive suite of both IT and communications offerings capable of addressing clients' business problems. If AT&T can't manage the transition within the next few years, its reputation will harden into that of a pure-play network service provider. This will relegate AT&T to niche status as a network-only provider, a losing CSD position next to rivals like BT HP Alliance and T-Systems, which will offer across-the-board coverage for all geographies, technologies, and business problems.

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