2025 TRENDS – WHAT TO WATCH IN THE ICT ENVIRONMENT

One of the challenges and advantages of Information and Communications Technology (ICT) is that the technology is always changing. The need to communicate in real time and to share information, however, does not change. It’s importance just grows.  As we close out the first quarter of the century, we reflect on the trends and changes that will impact enterprises the most in 2025. 

Generative Artificial Intelligence.  No list would be complete without flagging generative AI and its growing use (and growing concern) in the market. Gen AI is integrating into ICT at a record pace. That will continue as gen AI expands and matures. Regulatory guardrails will continue to lag the gen AI rollout, and significant Congressional action will be unlikely in 2025 (in 2024 there were many proposed bills to regulate gen AI; none passed). However, we expect a plethora of proposed legislation at the state, country, and administrative level. We also anticipate a growing docket of court cases involving gen AI. To help navigate the changing environment and extract measurable value when investing in new generative AI technologies, enterprises should establish a working group that includes thought leaders in operations, risk management, legal, HR, and product design and development to (1) create gen AI policy for internal gen AI use and for purchases of generative A, (2) determine the efficacy and risks of the use of gen AI in products or services the enterprise develops or purchases, (3) establish gen AI parameters that satisfy internal policies and risk profiles, and (4) focus on the actual return on investment with the ability to audit and assess the business benefits. Generative AI is here to stay and will only grow in complexity and promise. For 2025, we predict gen AI will significantly impact SaaS, contact centers, and customer portals. Given the potential advantages, productivity gains, and cost savings, enterprises will invest heavily in gen AI this year and beyond.

Network as a Service (NaaS).  Network as a Service will continue to be one of the key networking “buzz” words in 2025. When providers aren’t touting their newest AI options, they will be touting their NaaS offerings. This trend started over the last few years but will accelerate in 2025. Driven by the desire for a flexible, scalable and commoditized, “as-a-service” model in networking that is similar to the cloud and SaaS products that are increasingly the norm in IT, enterprises will continue to seek NaaS solutions. Networking providers of all shapes and sizes will continue to market a range of services as NaaS, regardless of whether they are delivering to their customers’ NaaS aspirations, creating confusion in the marketplace. This marketing will require enterprises to carefully identify their needs and pain points and then determine whether the proposed NaaS solution checks the boxes and cures real issues at a price point and on terms that make sense. Unfortunately, enterprises that fail to vet offerings may find that in 2026 they are paying more than expected for less than anticipated and the next trend will be unwinding and untangling the web of NaaS products.

Contact Centers as a Service (CCaaS).  In 2024, enterprises explored CCaaS offerings, venturing into this evolutionary (and some would say revolutionary) way of providing contact center support. In 2025 we anticipate a broader adoption and migration to CCaaS. The difficulty in staffing and keeping good contact center agents, end-of-life status of existing equipment and software, and the shift by the providers from on-prem to cloud-based offerings with effective AI use cases will propel enterprises to begin (or complete) their CCaaS journey for key contact centers this year. We expect a continued increase in RFPs, RFIs, and pilots as enterprises try to determine which offerings meet their needs, whether system integrators/managed service providers are a necessary component, and what providers will make the best partners from transition and implementation to run and maintain over the life of the contract. 

The Environmental Impact of ICT.  The press has focused on the potential shift away from green initiatives under the U.S.’s new administration, but we forecast a continued push to include green initiatives in enterprise ICT deals. The green trend is driven, in large part, by something else that is green – money. Corporate boards pressure their companies to control costs and minimize adverse publicity. Rising energy costs, particularly associated with the increased costs to run AI applications, and sustainability remain key priorities for businesses. Finding ways to “green” their ICT is good business. Accordingly, we expect the trend of incorporating sustainability initiatives in technology decisions will grow in 2025. Vendors should expect enterprises to include queries about providers’ efforts to reduce carbon footprints, their use of renewable energy, and their water efficiency, as well as associated cost savings for the enterprise in RFIs, RFPs, and strategy projects.

Controlling Chaos – Expanding Beyond Traditional TEM.  The complexity and number of ICT-related invoices continues to increase exponentially. Enterprises are increasingly migrating to multi-platform, multi-vendor services, cloud-based solutions with rates that are unclear or unchecked, and away from the “one throat to choke approach to ICT” to take advantage of the technological advancements and cost savings. Unfortunately, that means a myriad of billing policies, invoices, obligations, differing surcharges and fees and vendors, as well as complex contracts and pricing schedules. It’s hard to wrap one’s head around the complexity of the invoices and really track the details in a meaningful way or create an accurate inventory by site address with correct naming conventions and service IDs. Engaging with a Telecom Expense Management (TEM) partner is a good start, but TEMs can, and do, miss cost savings opportunities. They aren’t close enough to the day-to-day business operations and transformational projects to notice overlaps in services (particularly given multiple providers and differing product names), which means they can miss disconnections and cause your business case to go awry. C-level pressure for cost control and savings makes taking steps to check and expand TEM solutions a top trend for 2025. Expect new requirements for regular TEM health checks and performance audits to ensure TEM value, and to catch complex, and often costly, billing issues.

Wired No More – Growth of 5G and LEO Solutions.  Several years ago, the industry predicted the growth of wireless as a replacement for traditional wireline (and in particular, access). We see 2025 as a turning point in this journey. While there has been publicity about 6G from equipment vendors and its future promises, carriers still haven’t fully deployed 5G Stand Alone (SA) which provides the capabilities of the original 5G standards. Private 5G, including Citizens Broadband Radio Service (CBRS), has seen significant growth recently. The wireless providers will continue the push and focus on 5G and opportunities for enterprise innovation and connectivity. The increased investment in low earth orbit (LEO) satellites (which are smaller, more cost efficient to launch, and have lower latency compared to traditional geostationary satellites) offer another wireless alternative. Starlink and its competitors have created realistic options for connectivity. This is particularly enticing in hard to serve areas. We expect increasing adoption of 5G and LEO in 2025 but warn enterprises not to be short sighted in making decisions. Enterprises should consider resiliency and performance requirements in their equipment purchases and service selections to minimize future technical debt and should keep sourcing options open. 

Legal and Regulatory Landscape Changes.  Changing administrations in the U.S. create conflicting forces – a push for change and delay in implementation of change. However, recent U.S. Supreme Court decisions and anticipated changes at the FCC and FTC will create more immediate changes. We predict several changes that impact ICT: 

• Under Chairwoman Rosenworcel, the FCC passed net neutrality regulations, which were overturned on January 2, 2025, by the 6^th Circuit. The FCC could appeal the decision, but we find that unlikely since incoming Chair, Brendan Carr, is no fan of net neutrality. Given the current 6^th Circuit ruling, unless Congress intervenes, the FCC will treat broadband internet access as an information service and mobile broadband as private mobile services. We do not expect Congress, at least this Congress, will intervene. 
• This may be the year that something actually happens with regard to the Universal Service Fund (USF) fee. Legal challenges are pending, and the base of the fund continues to shrink while the needs grow, and the fee increases. Since the Affordable Connectivity Program ran out of funding, Congress will have to find other means of providing funds. Meanwhile in a challenge to USF, the Supreme Court will consider Congress’ ability to delegate core legislative powers to agencies based on an old, but seldom used (at least in the last half century) doctrine called the nondelegation doctrine. The Supreme Court’s ultimate decision, due this summer, will not only impact the future of USF, but it could also have much broader implications on agency power and Congressional delegation.
• Cyber defense related actions, and services provided by foreign advisories will continue to be scrutinized, including the role of TikTok and the implementation of the final rules issued by the Department of Justice in late December addressing national security threats posed by access to and exploitation of American’s bulk sensitive personal and certain governmental data by certain countries. But there are also signals that the incoming administration will pull the Biden executive orders, leaving a gap in guidance. 
• The EU’s directives, such as its recent AI Act and now established GDPR, will set precedent as the US navigates transition issues. 

2025 will be a challenging year, but one that has promise. To reach their potential, enterprises need to track the trends and procure and manage their IT products and services with care and knowledge. We will do a much deeper dive into each of the above trends in the next two months and invite you to watch this space, subscribe to our podcasts, and reach out to us if you want further information or want to share your own predictions for 2025. We wish you a successful and strategic 2025.