Telco SD-WAN in ASEAN: Significant Development, but What’s Next?

A. Amir

Summary Bullets:

  • The SD-WAN market landscape in ASEAN has evolved. Many telcos have added SD-WAN as part of their enterprise ICT portfolio.
  • The ASEAN telcos could consider multi-vendor offerings and overlay-underlay integration as the next steps.

There are two types of telcos. The first type is telcos that are aware of the increase in SD-WAN demand and leverage the technology to drive their network services. This type often comes from a consumer heritage and is looking to expand into an adjacent market. In most cases, they are alternative providers. These telcos have accepted the fact that the MPLS market is on a downtrend and will continue to decline. They position SD-WAN as a value-add to complement their existing connectivity services. There are also cellular telcos with small/no revenue from the fixed-line services which see SD-WAN as a new market opportunity. These telcos have been aggressive in driving the market and leveraging their brand and connectivity advantages to differentiate against non-telco competitors. The second type is telcos that are also aware of the growing SD-WAN demand, but see it as a threat to their connectivity business. These are often the incumbent telcos with a large portion of revenue from legacy connectivity services. Most of them still believe that the declining MPLS revenue is because of competition, not due to lower market demand. These telcos also often do not have any SDN/NFV capabilities. Some of them offer the service quietly/selectively with a below-the-line marketing strategy. Continue reading “Telco SD-WAN in ASEAN: Significant Development, but What’s Next?”

Outlook for 5G-Enabled Enterprise Solutions in 2021: The Potential Telco Game Plans

S. Soh

Summary Bullets:

  • While 5G-enabled enterprise solutions offer new revenue streams for telecom operators, they need new capabilities to develop and sell the full solutions, not just the carriage component.
  • Telecom operators will look to partnerships and/or acquisitions to gain the necessary competence to help customers in key industry verticals to transform their business operations.

Telecommunications companies (telcos) are at a crossroads as they rollout 5G and looking at how to monetize this investment. While they can continue to focus on selling carriage services, with the saturation of mobile subscription and competitive pressure, the hope of increasing ARPU from 5G connectivity remains elusive. Instead, many telcos are looking to enterprise solutions as a way to open up new revenue streams, leveraging 5G’s unique capabilities around ultra-low latency, reliability, and significantly higher throughput. Some will go even further and set new performance parameters with 5G. This shift inevitably involves moving into new territories for the telcos, including IoT, data analytics, cloud services, cybersecurity, etc., and bringing these capabilities together to solve business problems and prove outcomes. Emerging 5G enterprise solutions also tend to target specific use cases across various industries (e.g., smart factory, port automation, and connected utilities). Most enterprises do not know how 5G can help to transform their business and they rely on their technology partners to advise and show them the possibilities. Continue reading “Outlook for 5G-Enabled Enterprise Solutions in 2021: The Potential Telco Game Plans”

What Malaysia May Lose from the 5G Pushback

A. Amir

Summary Bullets:

• As the industry players are preparing for 5G, the government’s new initiative pushes back the technology to 2022.

• 5G is no longer a new technology and it carries more benefits than drawbacks for a country.

Malaysia was quite advanced in its 5G development with various industry collaborations exploring the potential of the technology in the country. This includes the task force set up by the regulator (MCMC) with initiatives such as events and collaborations among industry players to roll out 55 5G use cases in 2019. Besides, telcos have also been preparing their infrastructure to launch the technology, which was initially planned for H2 2020. Continue reading “What Malaysia May Lose from the 5G Pushback”

TM ONE Leap Summit 2020: Accelerating Digital Transformation in Malaysia Through Expanded Capabilities

A. Amir

Summary Bullets:

  • TM ONE has expanded its ICT portfolio and strengthened its professional service capabilities.
  • However, there is still a gap in its partner ecosystem compared to other providers.

TM ONE held its third LEAP Summit virtually in November 2020.  At the event, the provider shared various initiatives not only in enhancing the country network infrastructure in line with the government’s plan, but also in expanding its portfolio and capabilities as a digital transformation partner to Malaysian enterprises.  Its focus is on the future of work (e.g., robotics, automation AI), digital competency or skillset, agile working, and Industrial Revolution 4.0 (IR4.0).  The provider also shared several actual use cases and showcased its portfolio and capabilities in cloud, cybersecurity, 5G and IoT, and data analytics.  This post discusses TM ONE strengths and gaps in the market as well as recommendations for the provider and buyers in the country. Continue reading “TM ONE Leap Summit 2020: Accelerating Digital Transformation in Malaysia Through Expanded Capabilities”

Fireside Chat: What Are the Practical Opportunities for 5G and Edge Cloud?

D. Kehoe

Summary Bullets:

  • Edge redefines cloud by functionality, not location, as the old model of consumption economics moves from a centralized to a distributed model.
  • Telco exchanges, central offices, and street-side cabinets are prime edge/cloud locations and will create a special role for operators.

GlobalData, together with Infosys, HPE, and Spark New Zealand, hosted a global webinar recently to discuss 5G and edge compute.  This session attracted a cross-section of delegates, especially telecom providers across different regions.  The webinar included a presentation, a fireside chat, and direct questions from the audience to the panelists.  Continue reading “Fireside Chat: What Are the Practical Opportunities for 5G and Edge Cloud?”

SD-WAN for Homeworkers: Prohibitively Expensive or a Realistic Option?

G. Barton
G. Barton

Summary Bullets:

  • Homeworking has changed the dynamic for SD-WAN, which usually relies on physical or virtualized CPE at the corporate site, but options are available for those working from home.
  • Hardware-based solutions for homeworkers are falling in price, but may only be suitable for ‘power users.’

A growing number of SD-WAN technology vendors and network service providers (SPs) have either launched or have stated that they are developing SD-WAN solutions for homeworkers.  These usually come in two forms: small form-factor SD-WAN routers or software clients. Continue reading “SD-WAN for Homeworkers: Prohibitively Expensive or a Realistic Option?”

5G Updates in ASEAN – Q3 2020: Mixed Developments, but Still a Solid Growth Forecast

A. Amir

Summary Bullets:

  • There have been mixed 5G developments in the region. While the 5G race is heating up in the Philippines, Thailand, and Singapore, the launch is still unclear for Indonesia and Malaysia.
  • 5G subscribers are expected to grow from 0.2 million in 2020 to 127 million and account for 17% of the total mobile subscribers in 2025.

Key Announcements

July 2020 – Philippine PLDT/Smart 5G Goes Live: The incumbent launched its 5G services in key business districts in Metro Manila about one year after its rival, Globe. While PLDT may have lost some very early opportunity, the launch is timely in the Philippines considering the ecosystem and market readiness. The launch will also increase the competition and hence drive the adoption of 5G in the country. PLDT is also leveraging its strength in the enterprise segment to stay ahead of competitors. It has integrated the technology in its enterprise portfolio and is collaborating with various industry players to co-develop 5G use cases, such as partnerships with TV5 to modernize news operations and with Ateneo de Manila University on 5G smart campus. Continue reading “5G Updates in ASEAN – Q3 2020: Mixed Developments, but Still a Solid Growth Forecast”

SD-WAN Is Gaining Momentum in Australia, but Do Enterprises Have a Long-Term Network Strategy?

S. Soh

Summary Bullets:

  • SD-WAN is gaining traction in Australia with nearly 60% of enterprises already implementing the technology.
  • Enterprise customers need to consider their long-term network strategy to cope with the changing IT workloads beyond a standalone SD-WAN solution.

The SD-WAN technology has gained attention among Australian IT buyers and it has changed the WAN market significantly. Based on GlobalData’s research, nearly 60% of enterprises (businesses with more than 200 employees) have already deployed SD-WAN, and nearly one in three of those businesses are considering implementing it in the next 12 months. SD-WAN has taken off quicker in Australia than some other markets partly due to the migration of last-mile access to the NBN, which has resulted in several service providers (e.g., Macquarie Telecom and Aussie Broadband) offering SD-WAN with NBN as an alternative to MPLS-based IP VPN. 5G will accelerate this trend. Continue reading “SD-WAN Is Gaining Momentum in Australia, but Do Enterprises Have a Long-Term Network Strategy?”

Cloud-Network Convergence: Double-Edged Sword for Carriers, but an Opportunity Emerges in the Edge

M. Rogers

Summary Bullets:

  • Hyperscale cloud providers continue to invest in expansion of networking solutions and network adjacent partnerships with SD-WAN vendors and data center providers.
  • As hyperscale networking solutions become more advanced and the cloud edge moves closer to end users, some carriers may be crowded out of the cloud-network convergence market.

Hyperscale cloud providers and global network carriers have been building stronger relationships and deeper integrations around WAN and networking solutions. The partnerships are a natural fit as more enterprises move business-critical workloads to cloud platforms. These workloads require high-bandwidth, high-throughput, low-latency, secure, and reliable connections from virtually any location these days to connect to the major cloud platforms. Continue reading “Cloud-Network Convergence: Double-Edged Sword for Carriers, but an Opportunity Emerges in the Edge”

AWS Outposts Availability in New Countries Strengthens AWS’ Presence and Drives Edge Computing in ASEAN

A. Amir

Summary Bullets:

  • AWS Outposts availability in ASEAN countries strengthens AWS’ presence in the region and enables it to capture the high-growth cloud opportunities there.
  • AWS Outposts and Wavelength will drive edge computing through stronger collaborations with partners, especially the telcos.

Launched late last year in select markets, AWS Outposts takes hybrid cloud to the next level by enabling enterprises to run AWS compute storage, database, and other services within their own premises or preferred third-party data centers. For more, please see AWS re:Invent 2019: AWS Announces General Availability of Outposts, but Must Demonstrate Management Competence (December 5, 2019). Recently, the provider added nine new countries, including emerging markets such as Malaysia and Thailand, making Outposts available to 50 markets through 22 regions to date. While competitors have their own approach (e.g., Azure Stack, Google Anthos, Alibaba Apsara Stack), AWS is a step ahead in its service availability globally and partner ecosystem. Continue reading “AWS Outposts Availability in New Countries Strengthens AWS’ Presence and Drives Edge Computing in ASEAN”