A new report from benchmark-it (UK Enterprise Segment Communications Service Providers) finds that service providers focused on traditional fixed and mobile services for business customers are losing share as revenues decline.
Report author Rob Pritchard said: "Players that do not focus on the cloud, next-generation services and managed solutions are losing out."
The report also finds that the trend towards the Digital Enterprise has implications not just for portfolios, but also for culture, systems and organisations.
"Exponential growth at the likes of Amazon Web Services and WhatsApp serve to underline the new nature of the market," he added. "Service providers need to work out what their strategy is in a market where the value chain has been inverted.
"The old-fashioned silo approach is no longer valid or viable. While issues over the future of Openreach are operationally important today, service providers need to look further ahead in terms of what they offer to their target enterprise customers in the future."