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I think that SD-WAN could totally change the carrier market, in a destructive way, that is good for customers.

1. MPLS revenue for Private WAN is already declining

2. SD-WAN disrupts the router vendors who have cosy arrangements with carriers (their best customers) by producing devices that don’t damage carriers revenue. Is that why startups developed SD-WAN and not Cisco or Juniper ?

3. Multi-carrier networks create arbitrage opportunities that reduce cost of bandwidth by more than 50%. Now that is a “disruptive” technology!

4. Why are we stuck with dumb routers on dumb bandwidth paying dumb prices ?

5. Carriers are hopeless at customer service. Do you really believe that they could manage your firewalls, proxies, QOS etc ? Pfffftttt. Thats why I think carrier NFV is dumb.

6. Customers hate carriers. It could be time for customers to get even.

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Disclosure: Opinions are 100% my own. I dont have a salary owner to make excuses for. I will always disclose when I work with a brand on any paid campaign.

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4 COMMENTS

  1. Another problem I see is that some ISPs are selling unreliable "public" bandwidth for cheap, but it may go down quite frequently for hours. Therefore enterprise have to consider business grade solutions to make their operation more stable and reliable.

  2. Another major obstacle is the perception of the "lack of talent" at the local level. SD-WAN has a long way to go if there is still a perception that these companies and remote sites don't have the "talent" to keep them up and running. This is probably more prominent to me because I am in a rural area. I know that our local MS companies are out-competing ISPs left and right. The market may be able to figure this out. We need to keep training good IT folks to fill the void that this new tech will make.

  3. The biggest problem I see today is carrier loyalty for internet access (let along private WAN). Enterprises keep trying to treat internet access like a specialty product (instead of a commodity) and want to stick to one carrier instead of using whoever has fiber in the ground per location.

    It seems as illogical to me as having a preferred electricity/water provider instead of using whoever has pipes/wire in the ground in that location.

  4. I fully agree that locking in to one carrier is a bad idea. But what is your opinion in locking in to one SD-WAN vendor? As far as I know there is no open or standard based solution available.

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