Do you want to be the next networking super-power? Here’s how…
Jan 14, 2015
Disruption is often a challenge to large incumbent businesses, but the change also brings huge opportunities for new businesses. Within this context, SDN and NFV provide a massive opportunity for small service providers to step up and become a global super power. But how may this happen?
Each wave of disruption in telecoms has seen new service provides emerge to grow extremely valuable businesses from almost nowhere.
The introduction of cable networks led to the rise of Comcast, Liberty Global, Time Warner and others
Mobile led to new entrants that competed with traditional fixed line telcos. The big winners here include Vodafone, Bharti, America Movil, Etisalat and many more
Regulatory interventions in Europe have seen infrastructure competition in fixed broadband via LLU leading to the rise of service providers such as Free, TalkTalk, Sky, Vodafone, Jazztel, Fastweb and others
The next major wave of disruption is going to arise from software in the form of SDN and NFV. At Juniper we are seeing significant interest in how these will be deployed in the context of managed services for enterprises and SMEs. This is an area where there has been relatively little disruption in the past.
The new technologies and a desire to move services to the cloud will allow service providers to increasingly decouple the access network from the services. In practice this will allow those providing managed services on a global basis to operate more successfully outside of their access network footprint, and potentially not own any access networks at all.
As networks automate and separate services from the infrastructure it will be possible for truly global service providers to emerge.
Software based networking will also lower the barrier to entry – meaning that any new entrants in this space will not need billions of dollars to build a business. It may be possible to build a very large business with very modest amounts of initial funding.
In this new world order it is likely that the successful businesses will be those that meet the customers’ needs best in terms of: service features, pricing, agility, and customer service. These are all areas where large incumbent service providers have traditionally struggled.
Taking all of these factors in to account there is a massive opportunity for a new provider to join the top table (along with some of the existing large service providers) as a global provider of managed services to enterprises and SMEs
The big unknown is who will fill this role?
At Juniper we are working with service providers looking to grow their managed services business on the back of SDN and NFV. We see this as a shared journey between the service provider and Juniper as a strategic partner. Get in touch if you would like to explore this new and exciting journey with us.