Monday, 25 June 2018 21:08

Aussie telcos, time to get serious with managed SD-WAN to offset revenue decline

By

Data and analytics company GlobalData has issued a warning to Australian telcos that "software-defined networking, intense competition and price erosion" means data and IP market revenue is forecast to "decline at a CAGR of 1.3% from 2017 to 2022".

While the adoption of services such as cloud, big data and video conferencing is driving the demand for more connections and bandwidth, GlobalData says "enterprises are not allocating more budgets. Against this back drop, telcos need to get serious with managed SD networking wide area networks".

Siow Meng Soh, Asia technology market analyst at GlobalData, said: “In terms of competition, besides tier-2 players such as Vocus and TPG, there are players such as Megaport and SuperLoop which are entering the market and leveraging SDN-based technologies for market disruption.

“In terms of technologies, we expect SD-WAN to start having an impact on the market. While we do not suggest that vast swaths of enterprise customers are already moving network estate away from multi-protocol label switching (MPLS) and Ethernet, the demand is undeniable and SD-WAN is happening now.

"This is consistent with the CIOs/IT managers in Australia that GlobalData interviewed on a regular basis. Most of them had already evaluated SD-WAN and some had already started to deploy the technology. In addition, the company’s survey results show that among the various enterprise network and communications, budget allocation upside is mainly in SD-WAN and network services."

Soh added: “Besides potential cost-savings, SD-WAN offers enterprise a much greater level of control over their networks and therefore, most of the early adopters are self-managing the solution.

"At the moment, the SD-WAN vendors account for a large percentage of the initial uptake. Vendors such as VeloCloud (now owned by VMware), Aryaka and Silver Peak have made a big entrance into the market.”

However, GlobalData said "enterprises with existing MPLS/Ethernet networks are increasingly looking to develop a hybrid network leveraging SD-WAN. This trend is expected to accelerate as telecom providers and managed service providers are now actively partnering with SD-WAN vendors to tackle this segment".

Soh concluded: “While SD-WAN adoption will limit the growth of traditional data and IP services in Australia, we do expect growing opportunities in the managed network services space to offset the decline in carriage revenues. Telecom providers that do not have SD-WAN in their portfolio need to act fast.”


Subscribe to ITWIRE UPDATE Newsletter here

GRAND OPENING OF THE ITWIRE SHOP

The much awaited iTWire Shop is now open to our readers.

Visit the iTWire Shop, a leading destination for stylish accessories, gear & gadgets, lifestyle products and everyday portable office essentials, drones, zoom lenses for smartphones, software and online training.

PLUS Big Brands include: Apple, Lenovo, LG, Samsung, Sennheiser and many more.

Products available for any country.

We hope you enjoy and find value in the much anticipated iTWire Shop.

ENTER THE SHOP NOW!

INTRODUCING ITWIRE TV

iTWire TV offers a unique value to the Tech Sector by providing a range of video interviews, news, views and reviews, and also provides the opportunity for vendors to promote your company and your marketing messages.

We work with you to develop the message and conduct the interview or product review in a safe and collaborative way. Unlike other Tech YouTube channels, we create a story around your message and post that on the homepage of ITWire, linking to your message.

In addition, your interview post message can be displayed in up to 7 different post displays on our the iTWire.com site to drive traffic and readers to your video content and downloads. This can be a significant Lead Generation opportunity for your business.

We also provide 3 videos in one recording/sitting if you require so that you have a series of videos to promote to your customers. Your sales team can add your emails to sales collateral and to the footer of their sales and marketing emails.

See the latest in Tech News, Views, Interviews, Reviews, Product Promos and Events. Plus funny videos from our readers and customers.

SEE WHAT'S ON ITWIRE TV NOW!

BACK TO HOME PAGE
Alex Zaharov-Reutt

Alex Zaharov-Reutt is iTWire's Technology Editor is one of Australia’s best-known technology journalists and consumer tech experts, Alex has appeared in his capacity as technology expert on all of Australia’s free-to-air and pay TV networks on all the major news and current affairs programs, on commercial and public radio, and technology, lifestyle and reality TV shows. Visit Alex at Twitter here.

Share News tips for the iTWire Journalists? Your tip will be anonymous

WEBINARS ONLINE & ON-DEMAND

GUEST ARTICLES

VENDOR NEWS

Guest Opinion

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News

Comments