Communications Service Providers (CSPs), including operators, managed service providers and cable operators, now face the challenge of securing service revenue and profits in commercial broadband, such as high-speed, inexpensive Internet services. The software-defined wide area network (Sd-wan) solution seems to be a great antidote for communication service providers to improve the value of managed services for users.
CSPs has about $40 billion a year in profits from WAN services, including MPLS, Frame Relay, Ethernet, Internet, T-1, and leased line businesses. In the past, these companies were willing to make large investments in high-reliability, low-latency, secure links between their data centers or between data centers and branch offices.
But the problem is that with the increase in cloud computing and SaaS applications, distributed organizations have a significant tendency to change WAN traffic. Remote users need direct access to saas/cloud applications such as Salesforce,office 365,lync,webex and off premise storage. Traditional network management services, such as MPLS, are converging to the data center and cannot provide low latency, high-performance cloud application access.
A large number of equipment vendors, including Cisco, Riverbed, Viptela, Velocloud, Silver Peak, Pertino, and Talari, have also used Sd-wan technology in their products to better utilize the Internet link to address the challenges of WAN traffic. Sd-wan uses software and cloud computing technologies to simplify WAN services to branch offices and simplifies network configuration through software-based virtualization abstraction networks.
However, this approach requires the user to acquire and manage the device, which must leave the system backdoor for CSPs administrative privileges. After all, as bandwidth is commoditized, revenue from CSPs's managed business has peaked, and services like MPLS are threatened by Sd-wan technology.
The speed of Internet links (Ethernet, DSL, cable, etc.) is typically 1/3 to 1/2 of the cost of MPLS connections, and Internet services have a significant speed advantage over MPLS (100MB to 1GB), with extensive availability and fast provisioning time. The advantages of Sd-wan in reducing internet disadvantage (poor reliability, unpredictable latency, and weak security) are the main factors that threaten traditional management of business services.
CSPs needs to adopt Sd-wan technology to maintain its competitiveness in the managed services market, Sd-wan can help CSPs provide highly flexible, cost-effective management services to meet diverse user needs. One of the key services offered by CSPs is the hybrid WAN, which enables MPLS users to add services that manage Internet bandwidth in their branch networks, which will handle critical traffic between the data center and the cloud (that is, popular SaaS applications).
CSPs provides users with managed, secure, hybrid WAN services, which are the core interests of organizations that want to outsource complex WAN management to business partners. The reliability and security of the CSPs market is ensured by Sd-wan technology, with some of the leading CSPs already using Sd-wan solutions such as Verizon and SingTel, and more companies are studying the technology.
CSPs can introduce Sd-wan technology to reduce the risk of introducing new technologies to migrate to a hybrid WAN and provide professional support and services. The use of Sd-wan to provide users with new and valuable services, CSPs can avoid non-intermediary management services business, increase the use of Internet circuit business.
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Why the Communication service provider needs to implement Sd-wan