Expect Radical Change to Traditionally Conservative Telco Industry Over Next Three Years, Finds Heavy Reading Survey
– Significant shift in Service Provider Networking Architecture to be implemented across the industry to address exponential growth in mobile traffic, a refresh cycle in routing solutions and to lower network cost
– Nearly half of telecom operators predict their companies will radically change their IP Networks, while disaggregation of hardware and software is already publicly endorsed by leading operators such as AT&T, Telefonica and Rakuten Mobile according to research commissioned by DriveNets
Ra’anana Israel, Feb 11, 2020 – DriveNets, the networking software company, today announced the results of a survey conducted by Heavy Reading on the future of service provider networking which quantifies the significant early commercial interest in disaggregation of core and edge networks and supports the lead taken by AT&T with the release of their Distributed Disaggregated Chassis (DDC) specifications to the OCP.
“We knew there was a lot of interest in disaggregation, but how ready the telecom industry is for radical changes in their IP networks surprised us. The survey results show that operators globally are deeply committed to open technologies and to software-based solutions to improve network profitability and to efficiently scale to meet future network demands.” Sterling Perrin, Principal Analyst, Heavy Reading.
Service providers face increased demand for services and speed while struggling to maintain profitability. They are now looking to learn from the Cloud hyperscalers who solved similar challenges by breaking from traditional data center solutions to disaggregation of hardware and software resource virtualization and the use of standard white boxes. The report, commissioned by DriveNets, finds that across the industry the days of vendor lock-in are numbered as service providers seek disaggregation to build IP networks in the way the hyperscalers built the cloud.
Key findings include:
- Change in Service providers networking space seems inevitable. Nearly half (46%) of survey respondents reported that they expect radical changes in the next three years to their IP network architecture, with another 30% reporting that their organization is still deciding. Just 20% reported no expectations for radical change.
- The no. 1 drive for change is the need to lower network costs to maintain profits, no. 2 scaling to handle traffic growth and no. 3 reducing the complexity of their networks.
- Software replaces vendor lock-in. The most important selection criteria for a new vendor with 52% of respondents was a software-based networking solution, with disaggregation of hardware and software at the second most important at 40%. Incumbent IP vendor was a low priority, important to only 27% of respondents.
“These findings confirm the global trend we are experiencing within an industry that has barely changed for 30 years. We hear from our tier-1 service provider customers and our ecosystem partners that the market is shifting to an open model. DriveNets has an ecosystem of leading ODMs such as Broadcom, Ufispace, Delta and Edgecore and DDC leadership with Drivenets Network Cloud which supports the largest scale disaggregated routing cluster on the market. We are excited that DriveNets is well positioned to be a key vendor in the new disaggregated network market. ” Ido Susan, Co-Founder and CEO, DriveNets
DriveNets will be analyzing the results in depth with Sterling Perrin of Heavy Reading in a webinar on Telecoms.com on February 18th at 3pm GMT. DriveNets will also be presenting at Tech Field Day 22 on February 12th.
DriveNets helps Communications Service Providers (CSPs) take advantage of the greatest demand surge in Telco history, substantially growing their profitability by changing their technological and economic models. DriveNets’ solution – Network Cloud changes the traditional networking architecture that has been in place for the past twenty years by adapting the architectural model of hyperscalers to Telco-grade networking. Network Cloud is a cloud-native software that runs over standard white-boxes, radically simplifying the network’s operational model, offering Telco-scale performance at a much lower cost.
DriveNets was founded by Ido Susan and Hillel Kobrinsky, two successful Telco entrepreneurs. Susan previously co-founded Intucell, the company that invented the Self Optimizing Network (SON) which was acquired by Cisco in 2013 for $475 million. Kobrinsky founded the web conferencing specialist, Interwise, which was acquired by AT&T for $121 million.
About Heavy Reading
Heavy Reading, the research division of Light Reading, offers deep analysis of emerging telecom trends to network operators, technology suppliers and investors. Its product portfolio includes in-depth reports that address critical next-generation technology and service issues, market trackers that focus on the telecom industry’s most critical technology sectors, exclusive worldwide surveys of network operator decision-makers that identify future purchasing and deployment plans, and a rich array of custom and consulting services that give clients the market intelligence needed to compete successfully in the global telecom industry.