For several months now, much of the world has transitioned to remote work.
Where possible, knowledge workers have set up shop in home offices or kitchens or bedrooms, logging into virtual private networks and leaning on cloud services to keep business running uninterrupted.
"In previous iterations of the WAN, you might have seen one large MPLS cloud, but with core sites having a larger MPLS port than edge sites. Now we're seeing a lot more technology differentiation between core versus middle tier versus edge sites."
A self-proclaimed "data guy," TeleGeography Senior Analyst and Data Science Manager Mike Bisaha has spent years building tools to help IT managers better understand their networks' performance, design, and cost.
And he's learned a lot about the modern WAN in the process.
My colleague Elizabeth Thorne and I have been working on busting–or confirming–WAN pricing myths that we’ve heard in the wild. Last time I took on MPLS and DIA price convergence.
I’m going to stick with DIA for this post, too.
Specifically, I want to know if Tier 1 IP providers charge more for DIA service than others. This is a myth I’ve actually argued in favor of in the past. It is certainly true that some carriers can provide a higher level of service, i.e. traffic that takes the fewest hops between destinations, and maybe even traffic that never touches another provider’s network. This might warrant higher prices.
Welcome back to the third installment of our mythbusting series, where we break down legends in telecom pricing and see if they hold water. (Don’t miss our investigations on tall tales in local access budgeting and MPLS/DIA pricing lore.)
In case you missed my previous post, we here at TeleGeography love busting telecom myths. But we haven’t turned our analytical tools toward common WAN pricing myths—until now!
In this second installment, I’m going to investigate whether MPLS IP VPN and dedicated internet access (DIA) prices have become one and the same.
We have a years-long tradition of Mythbusting here at TeleGeography. But it occurred to me that we’ve never tackled any of the WAN pricing myths floating around out there. That’s why I decided to do a series addressing some of the things I hear from WAN-sourcing and WAN-selling professionals.
Let’s see if these WAN pricing myths stack up against the data.
First up: is it true that, particularly for traditional MPLS networks, local access can account for upwards of 50% of the total cost of ownership (TCO) of WAN components?
Predicting the future is hard, especially when it comes to complex markets with disruptive variables that are difficult/impossible to model. In his excellent book Thinking Fast and Slow, Nobel winner Daniel Kahneman provides stark examples of how bad humans can be at doing just that.
In this excerpt, Kahneman details how he tracked the performance records of 25 professional wealth managers across eight years. He found that “[t]he results resembled what you would expect from a dice-rolling contest, not a game of skill.”
Let's talk about telecom expense management, better known as TEM.
TEMs are designed to make untangling telecom investments a little easier. For larger organizations with bigger telecom bills, this can be huge for streamlining costs and saving dollars.
But why bring up TEMs? Why do we think WAN managers might be interested?
Australia is a place unlike any other. This is true for many reasons, but it’s certainly the case when it comes to Australia’s unique broadband environment.
This made for a fascinating backdrop as the TeleGeography team ventured to Sydney earlier this year for the first-ever WAN Summit in Australia. All that to say, the conversation was unlike those we’ve had in New York, London, or even Singapore, offering new, Down Under-specific insight into WAN management.
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