Traditional Thinking About the Campus Network Is Holding It Back

S. Schuchart

Summary Bullets:

  • Traditional thinking around campus networking as ‘wired’ and ‘wireless’ is holding back transformational change.
  • The business needs campus networks to be agile, secure, and operationally efficient, meaning wired and wireless networks must be considered as a whole rather than as individual parts.

We all need to begin thinking about the campus network as a holistic combination of LAN/WAN, wireline, and wireless access components, rather than as separate parts. For decades, we’ve looked at ‘wired’ and ‘wireless’ as separate and disparate buying decisions, sometimes even when purchased from the same vendor. As an industry, wired and wireless are still treated as separate markets: in analyst reports, in market shares, and by the press, customers, and vendors. Even the vendors on the forefront of combined campus networking still have separate engineering and sometimes even business units for these functions. The growing need to automate common tasks, apply policy across the network, and integrate security means we need an upgrade to how we think about campus networking. Continue reading “Traditional Thinking About the Campus Network Is Holding It Back”

Will Maxis’ New Enterprise Strategy Work?

A. Amir

Summary Bullets:

  • Maxis redefined its enterprise strategy to grow its business in the managed services market.
  • The provider needs to tackle the real needs of enterprises instead of just replicating best practices.

The practice of consumer telcos entering the enterprise managed service market is not uncommon, especially for telcos playing in a mature market. Telcos are looking to expand their revenue streams, as business from the traditional services (e.g., data, broadband, voice) is no longer growing. Maxis, a leading consumer mobile provider in Malaysia, started this journey as early as 2010, although the consumer mobile market was still growing at that time and there was no critical need for the service provider to look for new business areas. The move was mainly driven by technology leadership, following ‘best practice’ from other global leaders at that time. Today, while the provider is still playing in the enterprise managed service market, the driver has shifted from technology leadership/innovation to a real need to grow revenue in the segment and hence the overall business. Without much success in the past (with only 1.4% growth in 2017 and 3.1% decline in 2018), Maxis recently shared its new strategy to grow its enterprise service (managed services, cloud and IoT) by threefold in five years, focusing on leveraging connectivity assets and replicating industry best practice. While the strategy looks promising, will it work for Maxis in the Malaysia market? Continue reading “Will Maxis’ New Enterprise Strategy Work?”

Vocus Looks Like a New Company Starting Out on a Three-Year Turnaround Journey

S. Soh

Summary Bullets:

  • Vocus’ results for the first half of the financial year do not look great. Revenue is stagnating and EBITDA is declining.
  • There is, however, some optimism as the company embarks on its three-year turnaround journey. The company has a new leadership team and its network assets remain a key differentiator.

Vocus has reported its results for the first half of the financial year (H1 FY 2019) and updated investors on the outlook for the company. Revenue for H1 FY 2019 was flat (growth of barely 1% YoY) and underlying EBITDA dropped 10% compared to H1 FY 2018. Consequently, underlying NPAT declined 29% and net leverage ratio increased to 3.1x. Net debt increased $88 million to $1,089 million. The company grew revenue from its New Zealand operations, its enterprise, government and wholesale (the bulk of the growth is from the project revenue associated with the construction of the Coral Sea cable system). However, the growth was offset by the decline in its retail business in Australia; consumer declined 12% and SMB declined 27%. Overall, the financial results are not looking too good for the first half of the financial year. Continue reading “Vocus Looks Like a New Company Starting Out on a Three-Year Turnaround Journey”

Alibaba Cloud Looks for Growth Outside of China, and Indonesia Is a Good Target

S. Soh

Summary Bullets:

  • Alibaba Cloud is gaining a stronger foothold in Indonesia with its second data centre, a growing partnership ecosystem and an initiative to support start-ups to develop their business through a cloud-native approach.
  • Alibaba needs to grow its international presence, and it is establishing an early presence in markets such as Indonesia where competitors do not yet have a local presence.

Alibaba Cloud has launched a second data centre in Indonesia after launching the first data centre 10 months earlier. The second data centre enables Alibaba Cloud to increase capacity, provide higher availability and improve disaster recovery capabilities. The company also launched the Internet Champion Global Accelerator Program to support the growth of start-ups and local talents. The program will provide training, mentorship and venture capital opportunities to enterprises and professional services. The program is launching in Jakarta, and it will be extended to Bali in January 2019, as well as other global markets in the future. This is a strategic move since start-ups and SMEs in general are more ready to adopt a cloud-native approach and can become heavy cloud users as they scale up. Continue reading “Alibaba Cloud Looks for Growth Outside of China, and Indonesia Is a Good Target”

SDN and the Future of Networking

Joel Stradling – Research Director, Business Network and IT Services

Summary Bullets:

• Demands of innovative collaborative communications and cloud-native applications are placing tremendous pressure on legacy WANs.

• As companies virtualize more and more IT functions and migrate apps to private and public clouds, the resulting network looks very different to legacy static and hub-and-spoke network configurations.

• Corporate networks need to evolve to support greater automation, more self-serve, and better operational simplicity and agility.

• New SD-WAN services are the key to effective control and management of network traffic within disruptive technology domains; such as cloud-native migration, 5G, IoT, big data analytics, augmented reality, and machine learning.

• The new era is identified by networks being applications-led; as opposed to being connectivity-led.

Introduction

A panel of industry thought leaders gathered at the Vodafone Global HQ in Newbury on October 3, 2018 to address the following questions:

• What does the future of networking look like?

• How will how SD-WANs will make an impact on corporate networks?

• What are the opportunities and challenges in the industry for SD-WAN technology?

The following blog summarizes the main insights and discussion highlights that emerged during the panel debate.

Old Making Way for the New

The majority of existing corporate WANs in use throughout the business world are based on IP/MPLS technologies. In the past several years there has been a strong desire on the part of enterprise buyers of IT and network systems to also leverage Internet VPN, in parallel with private IP VPN services, to take advantage of a far lower cost-base for non-critical corporate data traffic. Continue reading “SDN and the Future of Networking”

Reactive Microservices Breed Compelling New Reactive Networking Protocol RSocket

C. Dunlap

Summary Bullets:

  • Reactive microservices will play a key role in furthering adoption of microservices in 2019.
  • Important OSS technologies will further this mission, including RSocket.

GlobalData’s recent report on application platforms predictions for 2019 anticipates a two- to three-year delay for microservices application adoption among enterprise DevOps teams (please see: Microservices, Serverless Apps Won’t Take Off in 2019, but Kubernetes Importance Is Elevated,” December 18, 2018). Delays are expected for the emerging app development architecture aimed at helping companies fulfill business transformations and move apps and systems to the cloud, due to complex networking implications around cloud-native architectures. Despite delays, there are promising open source software (OSS) technologies coming to light this year which offer the most likely scenario for microservices adoption among enterprise DevOps groups. Continue reading “Reactive Microservices Breed Compelling New Reactive Networking Protocol RSocket”

The New Wave of Telecoms: How Open RAN May Cause Major Vendor Shakeups

M. Rogers

Summary Bullets:

  • Rakuten has selected Nokia and Altiostar to build its RAN network, two members of the Open RAN Alliance, to have more flexibility in its network.
  • Open RAN initiatives will likely cause a shift in the RAN vendor landscape with new faces like startups and non-traditional RAN vendors gunning for market share.

During its Q3 results update, Japanese Internet giant Rakuten announced the list of vendors which will supply equipment for its mobile network. Nokia and Altisostar were selected for the RAN portion. Continue reading “The New Wave of Telecoms: How Open RAN May Cause Major Vendor Shakeups”

telkomtelstra Takes Multivendor Approach with Its SD-WAN Offerings to Address Diverse Market Needs

A. Amir

Summary Bullets:

  • As one of the first providers to offer SD-WAN in Indonesia, telkomtelstra has the early-mover advantage to capture the early SD-WAN adopters.
  • Its multivendor strategy addresses the diverse needs of around 30 million enterprises in the country.

Backed by Telkom Indonesia (the Indonesian telco with the largest market share in the country) and Telstra (the Australian incumbent carrier, which is expanding rapidly in Asia-Pacific and globally), telkomtelstra started its operation in 2015 focusing on the managed services market in Indonesia. Within only three years, the provider has rapidly expanded its portfolio and customer base. It now offers managed network services, security, UC&C and cloud solutions. The provider also offers various security consulting services such as advisory and assessments. For more, please see GlobalData’s telkomtelstra company assessment from November 27, 2018. Continue reading “telkomtelstra Takes Multivendor Approach with Its SD-WAN Offerings to Address Diverse Market Needs”

TM Forum Digital Transformation Asia 2018: CenturyLink Strengthens Asia-Pacific Business

A. Amir

Summary Bullets:

  • CenturyLink expands and enhances its portfolio in Asia-Pacific to challenge other carriers and grab the growing opportunity.
  • However, there are still gaps with its competitors, especially in portfolio and presence in the region.

At the TM Forum Digital Transformation Asia 2018 in Malaysia earlier this month, CenturyLink shared its direction to strengthen its presence and expand the business in Asia-Pacific. The move is in line with its global expansion strategy announced this year at its annual Analyst Forum. In Asia-Pacific, CenturyLink has over 2,000 employees, on-net presence in 12 countries and sales presence in six key markets (i.e., Australia, China, Hong Kong, India, Japan and Singapore). With the existing resources in the region, the carrier plays to its strength by focusing on inbound MNCs as well as Asian-based enterprises expanding beyond the region. It focuses in certain verticals, including OTT/content, media, entertainment, financial services, energy and utilities, retail and manufacturing sectors. Continue reading “TM Forum Digital Transformation Asia 2018: CenturyLink Strengthens Asia-Pacific Business”

Telstra Vantage: An Industry First Achieved by Connecting Software Defined Platforms to Cloud Exchanges through APIs and Automation

D. Kehoe

Summary Bullets:

• Telstra has greatly enhanced the value proposition of its TPN by offering access to many more clouds through the interconnection with Equinix Cloud Exchange.

• Telstra has created a strong differentiator by building its SD-platform from the core, embracing open source and going down the path of building own ‘IP’ and lines of code.

• Partnership with Equinix opens a lot of potential opportunities

Telstra has become the first telco to interconnect its flagship software-defined platform, Telstra Programmable Networks (TPN) directly to the Equinix Cloud Exchange (ECX) and expose clouds services to a TPN GUI. This gives 400+ TPN subscribers the ability to connect to any range of third-party clouds for SaaS, IaaS, and PaaS in an Equinix carrier-neutral facility. The tight API automation with user interfaces replaces an older era of negotiating direct connects on a case by case basis with cloud partners. Telstra has connected customers to Azure, IBM, and AWS, to support the customers’ cloud requirements. Now other environments, such as Oracle, Salesforce, RightScale, and Google are all within reach. In places where one of the 38 TPN POPs overlays an Equinix facility, there are additional advantages for being on-net. Since the launch of ECX back in December 2017, the plan for Equinix is to make this platform available globally supporting many operators. The plan for Telstra with the TPN integration is to offer this to 63 clouds in eight markets in phase one, before extending up to 200 clouds in 52 markets. This appears to be a win for both parties for a number of reasons: Continue reading “Telstra Vantage: An Industry First Achieved by Connecting Software Defined Platforms to Cloud Exchanges through APIs and Automation”