The Rise in Digital Means a Rise in Agile Networks | Market Insights™
Rise in digital means rise in agile networks: As enterprises launch more digital projects, demand for agile and programmable networks rises
Rise in digital means rise in agile networks: As enterprises launch more digital projects, demand for agile and programmable networks rises
4 key network transformation areas in enterprises: WAN transformation, datacenter network transformation, campus LAN transformation, voice transformation
Software-defined networking is a key transformation lever: Software-defined networking is a key transformation lever that enterprises are adopting across the datacenter, WAN, and branch networks
Challenges to software-defined network adoption: Enterprises need to address multiple challenges beyond upfront investments that inhibit SDN adoption
The major share of ITO deals are structured around ADM, testing, DW/BI, and network services
Even though the Department of Justice (DOJ) sued to block the merger between AT&T and T-Mobile, it is likely that AT&T, Deutsche Telekom, and T-Mobile will fight that move in the courts. AT&T has other viable alternatives, and this merger is not as necessary as AT&T would like everyone to believe. Rather, this is an attempt to opportunistically acquire T-Mobile’s AWS (1.7/2.1GHz) and PCS (1.9GHz) spectrum.
First, let’s examine the documents AT&T filed with FCC the about this deal. According to the documentation:
For these reasons, AT&T believes its customers are facing increased numbers of dropped/blocked calls, network congestion, and performance issues. These issues are detrimental to its customers and shareholders. AT&T thinks that acquiring T-Mobile (its network assets and spectrum, in particular) is the best and most efficient way to overcome the challenges it is facing in the near term. It believes that:
Let’s face it: AT&T – indeed all carriers – did not fully anticipate the rapid growth of smart phones and the associated exploding mobile data needs to their 3G networks. With demand on the rise, AT&T is looking to acquire as much spectrum it can for now and the future, as it realizes that whatever company controls the spectrum could control its competition and the industry by limiting the bandwidth available to others to improve or expand new products or services.
However, it appears that AT&T does not face an immediate shortage of spectrum. In fact, it is one of the largest holders of spectrum (including the prime 700MHz spectrum) within the United States.
AT&T has currently warehoused 40 MHz of its 700MHz, AWS, and WSC spectrum for future LTE customers (2013 onwards). And Verizon has stated it has spectrum needs up to 2015 from what it possesses today. For $US33 billion (excluding the $6 billion break up fees resulting from the acquisition of T-Mobile), its competitors, such as Sprint, believe AT&T could implement the following to optimize its spectrum utilization:
When the H, J, AWS-3 blocks of spectrum are auctioned by the government, AT&T will have the opportunity to purchase spectrum. If giving up some of T-Mobile’s prime spectrum is required for this acquisition to go through, I expect AT&T to walk away from the deal or pay substantially less than the current $US39 billion offer price.
Bottom line, AT&T should first consider reorganizing and/or more efficiently using space in its present home before rushing out to buy a new house.
During the past several weeks, Everest Group’s ITO team has had multiple debates about the various levers that govern the cloud services industry. The growing consensus has been that service orientations, *aaS (BPaaS, SaaS, PaaS and IaaS), are the strength levers with which the cloud service providers will play. So, for example, a Rackspace (IaaS) will host a Salesforce.com (SaaS) on a Microsoft Azure (PaaS) platform, completing the cloud landscape. Just one glance across the *aaS firmament and the stories appear similar. The cloud portrait seemed complete and nailed to the wall for posterity.
However, a statement by Steve Caniano, VP of AT&T Hosting and Cloud Services – “What is key for us is the ability to leverage the cloud as part of a network service experience – without a network you don’t have a cloud” – took our debates in another direction.
“Without a network you don’t have a cloud”
While the services side of the cloud has dazzled the industry, the infrastructure side – consisting of data centers and network – has seemed dreary. After all, network and storage are considered hygiene requirements for the cloud infrastructure. They also appear to have been relegated to commodities, as both the network and storage markets have experienced intense competitive and pricing pressures. Our feeling is that saying there cannot be a cloud without a network is akin to taunting a Ferrari owner that his or her sports wonder car is no good without Michelin tires. True, the owner may have a momentary nightmare of the beaming red Ferrari’s chassis lying flat on the ground. But it isn’t a real worry, as Bridgestone, Goodyear, and other tire brands are also options. So, can I pat myself on my back and say I nailed this “cloud without a network” debate with this repartee and sign off on this blog?
A growing tribe of telecom firms thinks otherwise. Verizon, CenturyLink and AT&T have all recently made big investments in cloud – acquisitions of Terremark and Savvis are still fresh, and AT&T has put up a US$1 billion corpus fund for its cloud initiative. Additionally, the cloud-focused consolidation happening in the telecom industry has coincided with the growing activity in the cloud services industry. The next generation of networks (4G and 5G) have enticed many new cloud initiatives. Apple’s iCloud is an example.
In the debate that ensued within my team on this topic, a colleague reminded that the whole concept of cloud comes from telecommunications, and that public telephony was the first cloud ever. With this legacy in mind, can we assume that control over network and bandwidths will help telecom companies define the rules of the cloud?
Taking this debate external, is network:
We’d love to hear your thoughts on this.
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