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Agility is the Goal and Lack of it the Handbrake

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When looking at the virtualization landscape in its broader sense I can’t help seeing that the real problem is agility or rather lack of it.

Take a look at SDN, whose main premise is to separate control from the data plane and thereby achieve high agility for its users. Same thing for NFV: abstract the software from the hardware and then combine and deploy software functions at will for high agility. So the operators, at least the bigger ones who have the least agility, are investing megabucks to deliver on the twin promises of SDN and NFV. What’s frustrating for them is that they are doing so lamentably slowly and in a decidedly non-agile manner.

In a sense it’s not so surprising. In effect, the operators are trying to re-engineer 15 years of painstakingly built managed services processes in a very short period of time. And they are doing so using a combination of new operational and management techniques, new albeit commonly available hardware, re-packaged software and co-opting their existing set of waterfall processes and organisational silos. This is like pressing on the accelerator with the handbrake on. Some, e.g. Verizon and belatedly AT&T, are trying to loosen the rigid structure of their organisations to create a more agile decision-making process and a Devops culture where network specialists and IT folk combine to break down internal barriers and loosen their internal disk-brakes.

It’s when we take a look at the arrival of SD-WAN that we see the real impact of lack of agility. SD-WAN vendors position their wares to enterprises with self-select portals, centralised policy control and the ability to take advantage of cheaper Internet links to deal with all the Cloud-based, Internet services that are swamping their traditional operator-provided WAN connections. This puts control and thus agility in the hands of the enterprises and this is precisely what they want.

The response of the operators to SD-WAN however is telling. As opposed to SDN and NFV, where they are re-engineering their processes with open APIs to (slowly) deliver on the promise of virtualization, they have taken a very different tack with SD-WAN. For the most part, they have:

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When the Rubber (Finally) Hits the Road: 2018 Predictions

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Looking ahead to 2018, Pravin Mirchandani, CMO, OneAccess Networks, anticipates a year of challenge and opportunity for operators.

Europe Starts to Get Serious about Virtualization

After a long period of experimenting with virtualization technology in their labs, European Telcos (or at least some of them) will get serious about introducing virtualized services for their enterprise customers. This is clearly apparent at Deutsche Telecom, in particular, but also at Orange and BT. I’d still hesitate to predict that we will see many actual service launches in Europe but nonetheless decisions will be taken, budgets will be committed and the new product introduction (NPI) work for virtualized services will begin.

The Cost of White-Box CPEs will be Driven Down but Not by Price Reduction

It’s clear that all the big Telcos are convinced about the benefits of an on-premise white-box strategy and while in 2017 they debated about how to move from grey-boxes, principally from Cisco and Juniper, right now they have a different problem: cost, particularly for the appliance they need for the volume part of the enterprise market, commonly known as the ‘small uCPE’.

Yet if half the cost of a white-box derives from a monopoly vendor – Intel – then, in the absence of competition (hint: think ARM), the only way to reduce costs will be to moderate demands on it. This will come from two directions. The business managers at the Telcos will insist on a smaller set of VNF requirements to reduce the number of cores and memory required (the two key drivers of costs for a white-box appliance) and the VNF vendors will gradually reduce their resource footprint in response to the Telcos’ demands.

The Operators Will Realise that SD-WAN is Actually a Marketing Problem

SD-WAN puts choice in the hands of enterprises and does so at reduced cost with automation removing complexity, a winning combination that is taking business away from many Telcos. So far, the Telcos have looked at this principally as a technology problem: how to build self-select portals to introduce choice for their customers, how to automate their back-end processes and how to co-opt SD-WAN technology without vendor lock-in.

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Latest News

  • EKINOPS Hires New CTO

    EKINOPS (Euronext Paris - FR0011466069 – EKI), a leading supplier of telecommunications solutions for telecom operators and businesses, announces the appointment of Vincent Munière as its new Chief Technology Officer and Vice President of Research and Development (CTO and VP of R&D). He will strengthen the EKINOPS technology vision, accelerate software innovation and lead the Group’s engineering and support team.

     
  • EKINOPS Announces Partnership Agreement with Lanner

    EKINOPS (Euronext Paris - FR0011466069 – EKI), a leading provider of open, future-proof and flexible solutions for the access network, today announces the completion of a partnership agreement covering North America and Mexico between EKINOPS and Lanner Electronics, the global leader in Whitebox Solutions™ for SD-WAN, uCPE, vCPE, and MEC platforms.

     
  • Robust profitability for EKINOPS in H1 2020: EBITDA margin over 14% despite a turbulent environment

    EKINOPS (Euronext Paris - FR0011466069 – EKI), a leading supplier of telecommunications solutions for telecom operators and businesses, has published its first half 2020 financial statements (for the period ended June 30, 2020) as approved by the Board of Directors on July 27, 2020. The statutory auditors have conducted a limited review of the first half financial statements and will shortly issue the corresponding report.

     

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