"The two most predictable trends in the bandwidth market have been persistent demand growth and price erosion."
For PTC '22, Senior Research Manager Brianna Boudreau took a look at the most common pricing questions we've gotten over the past year to think through how they might play out in 2022.
In previous iterations of this workshop, our first question would not be if prices are falling, but by how much?
You've seen the decade challenge. Post a picture of yourself in 2010 and another in 2020. Compare. Contrast. See how far we've come. (Or reflect on a time lost, wondering aloud why youth is wasted on the young.)
At PTC 2020, Brianna Boudreau thought it would be fun to do the same thing with TeleGeography's network pricing research. She came armed with data from our January 2010 workshop, as well as our latest and greatest analysis.
So far, we’ve looked at several more conservative approaches to constructing a hybrid WAN.
But what if we went all the way down the rabbit hole to an all Internet WAN?
For example, throwing a lot of bandwidth at the network and letting SD-WAN take care of the internet performance.
Use of the internet in corporate WANs is quickly growing. And for good reason.
Not only are internet services such as DIA and broadband cheaper than MPLS, many of the SaaS applications and cloud services that enterprises have adopted have been optimized to work over local internet connections rather than through central internet breakouts.
In addition, SD-WAN has emerged as a tool that allows WAN managers to incorporate these lower cost internet services into their network without sacrificing performance or security. But not every network site (or enterprise customer) is a good fit for an all internet WAN.
In our next two scenarios, we take an approach that we see many enterprises taking—designating network sites into tiers and assigning different network services to each tier. This allows companies to add in local internet breakouts at most offices, but keep some MPLS at higher priority sites that need service level assurances.
Our latest Global Internet Geography Research Service refresh came with new pricing data.
And if you'd like a sample of this new data, you've come to the right place. Let's jump right in, shall we?
Enterprises can choose few or many providers in the middle mile (or none at all). As with other technology procurement decisions, this depends on an individual enterprise’s capability to orchestrate multiple vendors and preferences for specific vendors in the chain.
It also depends on current network infrastructure and the desire to leverage that toward a reconfigured WAN, as well as the performance and cost goals the enterprise wants to achieve.
To provide insight into how a complete SD-WAN overlay can impact total network spend, it’s useful to look at how various cost components apply to a specific network.
Looking at the total cost of the overlay and its impact on a network’s total cost of ownership (TCO) affords the most apples-to-apples comparison between service providers, particularly with a number of pricing models currently in the market.
To do this level of analysis, we created a hypothetical network based on our median WAN Cost Benchmark customer.
While the key SD-WAN transformation use case was built around network cost and resiliency, its focus is now shifting to security.
Enterprises have moved to more internet connectivity. Traffic patterns have moved away from on-premise data centers to neutral colo facilities or cloud service providers/hyperscalers. And over the past two years, edge access has moved out of the corporate site—to home and remote connections.
These forces changed how enterprises approach network security, and SD-WAN vendors have responded with new partnerships and feature sets.
This review looks at enterprise security trends and how SD-WAN vendors have adapted to accommodate security needs.
Unlike network services, SD-WAN is not a commodity, and pricing strategies are still in flux. But as the service matures, this is beginning to change.
Median price points have started to decline and the range in reported vendor prices has started to converge.
Let's unpack SD-WAN prices—starting with pricing models.
The network faced a host of new demands and challenges in 2020, but many of the key trends that characterized the wholesale market prior to the pandemic held true.
Demand growth remains robust. And while the pace of price erosion moderated in many markets over the past year, prices still continued to decline.
SD-WAN can seem like a moving target.
But what do you need to know about SD-WAN right now, at this moment in time?
We thought a lot about this question as we developed our latest refresh of the SD-WAN Research Service. While we can't divulge all of our new intel in this blog, we did want to shout out some of our top-level findings. Keep scrolling to enjoy a bite-size sampling of our latest data.
