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Summary

In brief

The digital economy is underpinned by an always-on, ultra-fast network. Discerning enterprise and government customers want high availability and guaranteed low latency. Carriers that update their network and operations infrastructure to deliver a premium optical transport network (OTN) have a monetizable differentiator. Carriers can command a premium for a superior service.

Ovum view

The digital economy and governments require a next-generation private-line service. Legacy services no longer scale or have up-to-date "service wrapper" capabilities. Shared services are viewed as vulnerable to security threats and short on adhering to stringent latency performance requirements. The next-generation premium private line based on OTN technology can deliver high availability, low latency, security, and bandwidth flexibility. In addition, next-generation operations and maintenance can be delivered by advanced client and carrier portal capabilities.

The target architecture for premium private line is clear. The challenge is the most effective roadmap for carriers to follow. Carriers will have differing interpretations for their end-game service suite and different network and operations starting points. Carriers do need to match new revenue generation with efficient capital and operations plans. For some carriers, the market need is so great that a greenfield overlay with the latest optical technologies is the most expedient way forward. For other carriers, a series of incremental improvements can be added over time to strengthen their premium private-line portfolios.

Key messages

  • High availability. Government and the financial community, demanding customer segments, desire the highest-availability network performance. Network architectures need to be designed from day one for high availability. It has a cost but delivers a premium, differentiating value.
  • Low latency. After availability and price, latency performance is the next key differentiator in the high-bandwidth service market. The market has moved beyond estimates and calculations. Real-time measurements enable differentiating guarantees backed by service level agreements (SLAs).
  • Security. This is no longer an add-on, but a designed-in capability. Demanding and security-conscious clients want networks featuring dedicated resources with no comingled traffic.
  • Bandwidth flexibility. Traffic planning is notoriously difficult. This challenge is amplified in the cloud era. A value-added service for clients is the ability to accommodate unexpected traffic bursts.
  • Portal enabled. Businesses and consumers have modern expectations of rapid portal-enabled interaction. Portal functions cover all aspects of the service lifecycle including quoting and ordering, real-time KPI monitoring by the client-tenant, and advanced predictive, AI-driven operations and maintenance for fast, efficient, cost-effective carrier operations.

 

 

Appendix

 

Ian Redpath, Practice Leader, Components, Transport and Routing
ian.redpath@ovum.com

 

Ovum Consulting


We hope that this analysis will help you make informed and imaginative business decisions. If you have further requirements, Ovum's consulting team may be able to help you. For more information about Ovum's consulting capabilities, please contact us directly at consulting@ovum.com.

 

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