SD-WAN Vendor Lock-in Walls to Come Tumbling Down with Enea, Intel and flexiWAN with Open Source SD-WAN PoC
Analyst Quick Take
Disruption in the SD-WAN segment is just around the corner. Next week in the Hague at the SDN NFV World Congress, three partners Enea, flexiWAN and Intel will unveil the first SD-WAN Open Source PoC to the industry. The solution is based on the following components:
This move promises to lead the SD-WAN segment to the next level of flexible programming and high throughput for purpose-built SD-WAN applications. Enterprises are averse to the vendor lock-in that certain SD-WAN solution approaches demand – and the disruption that the Enea-flexiWAN-Intel will bring is a welcome move to shake things up.
Why Open Source?
The hardware segment of networking and data centre has broken down the model for proprietary equipment. The SD-WAN market has caught on to this movement as we have seen with more and more managed service provider announcements concerning whitebox uCPE initiatives that will support from 4 to 6 VNFs (typically) to run a variety of VNFs via the support of service chaining.
Click on the below links to see the following blogs:
‘GTT Adds uCPE to SD-WAN’ – July 30, 2019
‘Colt Launches New uCPE with ADVA to Revolutionize the Network Edge’ – July 19, 2019
Opportunities for Differentiation
Service providers that are able to differentiate their managed SD-WAN products according to the needs of specific industry verticals put themselves in an excellent position to win big deals, grow market share, and drive revenue growth.
Thomas Gall of the University of Southampton recently published the paper, “The value of public information in vertically differentiated markets”, which whilst academic examines the tried and test adage that 'Differentiation increases profits'.
Clavem Research fully agrees with the suggestion in Mr. Gall's paper that vertical differentiation is defined by 'perceived quality differences between products in the same market'. The full paper can be read here.
This is why Clavem Research has created market insight content that looks directly at the differentiation of SD-WAN services by four industry verticals: manufacturing, healthcare, retail and finance. The shared knowledge benefits the industry and players in clarifying how SD-WAN can solve technology challengers for manufacturing and logistics companies and who the leading providers might be measured on the criteria of innovation, investment, product maturity, and market momentum and traction.
Digital transformation in the manufacturing and logistics vertical is an essential evolution for players to achieve competitive advantages. Digital platforms give manufacturers and logistics and supply chain companies opportunities of being quicker-to-market than rivals, and to extend to end-users and channels an amazing customer experience. On-demand and virtualized solutions result in greater agility and reduced CAPEX. SD-WAN is a technology mainstay for moving more apps to the cloud and for providing a support pillar for IoT, AI, edge computing, and big data analytics.
Existing connectivity solutions are not fit for task for supporting these rapidly evolving technologies. However migrating legacy IT networks to newer and more innovation digital solutions raises challenges, which has given rise to multiple examples of fully managed services with advisory services added to help with a transition. IT managers still need to support their legacy platforms, and are under constant board-level pressure to lower IT spend, which is a fine balancing act. SD-WAN is an ideal technology choice for centralized management and control of complex WAN platforms, with clear views made available through portals to achieve an optimised network. Autonomous network for supporting industrial scale telemetry will continue to evolve to deliver networks that can self-allocated bandwidth prioritized for mission critical apps on-demand and in real-time.
SD-WAN deployments in manufacturing and logistics can be designed to drive improvements to:
To gain access to more insights and see the Clavem Research Leaderboards, please contact us
excellent Customer experience, Speed-to-Market and Partnerships provide the keys to success in iot and smart city
Stakeholders Need to Adopt a Fresh Mindset as the World Becomes Increasingly Interconnected
by Rolf M. Schonhowd, VP Research, Clavem Research
The importance of speed to market with new IoT and Smart City solutions is as high as it ever has been. Players within this segment need to serve existing service but at the same time focus upon and guide customers towards future-proof and robust platforms. This segment is noticeable for the number of various technology providers that cooperate in an ecosystem to be relevant.
To win in this rapidly changing market technology companies need strong partnerships to serves customers with compelling digitised solutions.
Clavem Research will be expanding its IoT & Smart Cities coverage in the client subscription area of this site. A research agenda for publishing in-depth advisory and market insight reports will closely examine the general market trends as well as individual player initiatives .
Please click here to learn more about our subscription service
Comcast Business Strengthens Cybersecurity Proposals with Akamai and Fortinet; and joins MEF Board of Directors
Clavem Research was present at the Comcast Business 5th Annual Analyst Day at the Comcast Technology Center in Philadelphia. During the event Comcast Business published its press release announcing improvements to its cybersecurity proposition based on new products delivered in partnership with Akamai and Fortinet.
Together with Fortinet, Comcast Business will offer midsize clients and large enterprise customers new cybersecurity software-defined and Virtualized Network Functions (VNF) deployed over Comact Business’ ActiveCore SDN.
Additional to the above, Comcast Business and Akamai cooperated to develop and launch a cloud-based cybersecurity service designed to protect small business customer online Web presences.
Comcast Business also announced that Robert Victor, Senior Vice President of Product Management, has joined the MEF Board of Directors to support and contribute the drive to accelerate worldwide adoption of assured MEF 3.0 services across automated networks. The MEF Board of Directors is committed to accelerating adoption of assured MEF 3.0 services across a global federation of automated networks. MEF’s vision, which Comcast Business is now a part of, is to provide dynamic performance and security required to advance the digital economy.
Masergy announced the launch of integrated advanced security bundled with its managed SD-WAN service. The move is Masergy’s response to the fact that enterprise clients place high emphasis on integrated security for SD-WAN and apps running in hybrid public/private clouds. Masergy is leveraging established IT and network security expertise and credentials, including global SOC facilities and certified security professionals. The company launched three security options that clients can be bundled with Masergy SD-WAN:
1. Unified Threat Management (UTM): Web filtering, anti-virus, data loss prevention, and intrusion detection and prevention.
2. Threat monitoring and response: 24/7 threat monitoring, and real-time incident response.
3. Managed security services: Combines the above with behavioral analytics (supported by ML), embedded threat intelligence, and 24/7 security monitoring and incident response.
Masergy Opportunities for Differentiation
Masergy has made it more convenient for its customers to source managed SD-WAN together with integrated and advanced security protection in a one-stop shop. This boosts stickiness for Masergy, and drives upsell/cross-sell. In terms of differentiation: Masergy’s sales teams can point to the integration of its security capabilities with its SD-WAN offerings as a standardized off-the-shelf product. As such it can deliver the bundled security features quickly and effectively without the time lag that customized solutions demand. The application of ML to deliver advanced behavioral analytics feature as a part of its managed security services bundle gives Masergy an additional opportunity to differentiate.
Competing managed SD-WAN providers also tend to promote the security features that their clients can get with the services, included standard security protocols and tools, plus additional optional add-ons for more premium and bolstered security. Thus, Masergy’s rivals will point out that the additional security features that it has launched are also available and that the move is nothing new in the market. Masergy’s global competitors tend to have comparably very large-scale managed security credentials and capabilities. Telstra for example has acquired three security specialist companies in the past three years: Cognevo, Company85, and VMtech. OBS has also been very active building up its security capabilities, having acquired SecureData very recently and running a major Orange Cyberdefense group division. Similarly, large global providers such as BT have many hundreds of certified security consultants and security partners that it can deploy to support major multinationals with securing their SD-WAN solutions.
Masergy can highlight three global SOCs offering 24/7 support, plus a team of qualified security consultants. The fact that the company has integrated its security capabilities as defined commercial bundles with its SD-WAN gives customers a quick and smooth on-boarding for advanced secure SD-WAN features and managed service, plus a single throat to choke. Masergy’s competitors can consider adopting like-for-like messaging, developing off the shelf SD-WAN that can be enhanced with integrated security packages. SD-WAN plus security bundles make it easier for clients to buy a secure SD-WAN service from a single supplier. Masergy’s initiative is about giving customers convenience and peace of mind, and competitors must be able to give the same type of message and offer. Both network operators and managed security vendors must communicate to customers how ML is being applied to strengthen behavioural analytics. Failure to communicate ML driven cyber security capabilities means falling behind rivals.
Please send us an email to access the full length version of this report
July 30, 2019 - GTT launched four uCPE platform options to suit small sites up to larger-scale data centers, and enhancing its SD-WAN proposition. The move strengthens GTT’s SD-WAN service, because its uCPE platforms support centralized management of software updates across the service provider’s extensive global IP backbone. GTT offers VMware SD-WAN by VeloCloud and SilverPeak Unity Boost for optimization. The service provider also supports Palo Alto Networks and Fortinet on its uCPE devices for virtualized network security. Offering SD-WAN as a VNF feature running on top of a uCPE device is advanced in the market.
GTT's uCPE for SD-WAN gives agile management of remotely connected business sites, such as factories, retail outlets, sales kiosks, and offices, etc., without those sites needing complex and expensive on-site hardware deployment and management.
The combination of its uCPE with SD-WAN, network assets (600 global PoPs) and relations with thousands of third party last-mile access providers results in a compelling offer targeting multinational prospects.
The uCPE devices need to be shipped to client sites thus a reliable global logistical support fabric is a must. Customers that heavily invested in certain major IP router suppliers may be protective of investments, which can introduce an element of resistance to the take up of GTT’s uCPE proposal.
Next steps for GTT - the company can consider how it can differentiate from rivals, since the look and feel of its SD-WAN and uCPE proposal is somewhat similar to SD-WAN plus uCPE available from a several competitors, including for example Colt and Verizon.
Clavem Research suggests that a strong and proven cloud networking heritage (‘from the ground to the cloud’ – a former Interoute moniker) and global IP backbone and capacity holds the keys to a differentiated service.
GTT can continue to develop the richness of its SD-WAN (for example service wrap, management portal, uCPE form factors, and a broad VNF menu), and tell prospects that few service providers can match its rich network coverage and engineering skills, as well as early move into supporting migration to the cloud on behalf of enterprise customers.
To access the full report please email us.
Colt recently gave the third instalment of its network virtualization and SD-WAN Webinar series ‘uCPE: Revolutionising the Network Edge with Colt’. The live Webinar plus Q&A was delivered in collaboration with partner ADVA. Colt has launched support for Versa Networks SD-WAN and Check Point firewall VNFs and has a development roadmap underway to also offer VNFs for Palo Alto, Riverbed Technology, SilverPeak, Infovista-Ipanema, Cisco-Viptela, and Juniper Networks.
Colt with uCPE partner ADVA are poised to support innovation at the edge of the network, and this is not something Colt’s rivals can necessarily match. Customers can ask for Colt’s views on building networks for the future, including for example how its SD-WAN can provide a supporting structure to deploying micro-services in containers in multi-clouds, IoT, and for harnessing AI/ML.
The main challenges that Colt faces for traction for its SD-WAN and uCPE offerings are twofold: firstly, several competitors offer Versa Networks SD-WAN (examples include Tata Communications, Virgin Business, Comcast Business, Zayo, and Verizon) and have collaborated with a number of vendors and partners for flexible uCPE choices – with Verizon offering a large range. The second challenge is on the customer-side, uCPE solutions are not necessarily well understood with the market just beginning to evolve and adopt in seriousness. Colt faces the task of educating customers and demonstrating to its target market how its SD-WAN and uCPE products can give real benefits.
Colt can continue to communicate the pragmatic message of phased approaches for its customers looking to migrate to open virtualization platforms. The company can talk about its skill-sets and experience with designing, deploying and maintaining SD-WAN, and can bundle in very strong security based on VNF partners as well as its own managed security capabilities. Furthermore, Colt has the network assets and relations with peering partners to offer global backbone and last mile access services to provide a robust underlay.
To access the full report please email us.