Going Native Digital: The Impact of Overlay Networking on B2B Service Providers
Globaldata's Going Native Digital: The Impact of Overlay Networking on B2B Service Providers Report provides insights on the nature of WAN services, impact of overlay networking, and the importance of the network underlay, among others.
SDWAN has become, in an astonishingly short period of time, the de facto WAN technology with widespread adoption and most network service providers reporting that a requirement for SDWAN is present almost all RFPs. The technology was thought to be a threat to traditional network owning telecom services providers (SPs) because it was felt that the easy to use nature of the technology combined with advanced self-service portals would lead to more businesses adopting a self-serve approach. In addition, MPLS would be stripped out in favor of internet and therefore also damage SPs` data revenues.
The reality has proven to be somewhat different. MPLS is being replaced by internet, a process accelerated by COVID19, but overall bandwidth growth (primarily for internet services and cloud connectivity) has helped to mitigate the damage. Enterprises have not adopted a DIY approach to network services en masse. Actually SP We report that more and more companies are adopting a joint management approach as they provide increasingly complex network services. This is especially true in the US market, where the do-it-yourself approach has traditionally been more common.
Key insights from the Going Native Digital: The Impact of Overlay Networking on B2B Service Providers report:
- Overlay networking has changed the way that enterprises approach network services and service providers need to react
- Network underlays and overlay should be seen as individual platforms within a portfolio, not as inseparable
- A multi-vendor SD-WAN strategy should include hyperscaler solutions such as Azure WAN
- Service providers should seek to educate enterprises on what ‘the internet’ may mean
- Work from home offers an avenue for SPs to make their underlay assets more relevant
- SPs need to be flexible in their approach to the underlay – it’s what enterprises want
To check the detailed outline of the above-mentioned findings, please download the report.
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