Global Data WAN Services: Trends and Market Leaders

Transcription

1 Global Data WAN Services: Trends and Market Leaders Presented by: Joel Stradling Date: October 26, 2010 Washington DC / Paris

2 Agenda Major Trends Differentiation in a Crowded Landscape Adding Value Service Wraps of Competitive Portfolios Future Release Developments The Global Pecking Order Regional Analysis Summary Q&A 2 2

3 Major Trends CE Access is improving: speed & reach Expanded Ethernet-over-fiber access for speeds 100 Mb and 1 Gb per second and more Managing interconnections and off-net partners Applications Performance is improving Applications performance, monitoring & management WAN optimization Acceleration & compression technologies Virtualization and moving to the cloud Outsourcing IT and infrastructure Hosted applications, servers, computing 3 3

4 Major Trends: Some Things are the Same as One Year Ago Ethernet is a replacement for legacy services that underperform and are costly to maintain Layer 2 Ethernet is NOT a replacement for Layer 3 IP/MPLS VPN Metro Ethernet still most prevalent application of Ethernet services, but national, cross-border & longhaul continue to grow Momentum Positive Neutral Ethernet VPN Crossborder VPLS Pt-to- Pt Pt-to-Mp National EVPL VPLS Metro Ethernet Negative Immature Mature Maturity 4 4

5 Data WAN Evolution: Some Things are the Same as One Year Ago Traffic Prioritization Customer IP control Hundreds of sites Multiple CoS IP/MPLS VPN Data centre interconnection HQ interconnection Migration from legacy Hybrid Ethernet VPN Low-latency Multi-protocol Build unique IP VPN Managed IP communications High bandwidth Existing MPLS investments Plug and play 5

6 Major Trends: Ethernet and IP VPN IP VPN A more mature technology Main pillar for enterprise data WANs Thousands upon thousands of data endpoints in place Ethernet VPN Early maturity market education still required Increasingly supporting Telepresence ex: Masergy and AT&T OPT-E-WAN Chosen for specific applications ex: trading 6 6

7 Differentiation in a Crowded Landscape On-net footprint Off-net reach - NNIs Resilience and diversity Network Reach and Performance Portfolio & Features SLAs & Pricing Broad range Value-added features Customer self-service tools Performance metrics Service guarantees Flexible & usage-based pricing 7 7

8 Differentiation through Adding Value Back-up & Restore Create a one-stop shop for multiple services Remote Access & IPSec to public Internet Rich Communications Managed Security Data Centre and Hosting 8 8

9 Service Wrap of a Competitive Portfolio Standard off the shelf proven products that meet general needs: Next-generation SDH Shared *EVPL IP/MPLS VPN interconnecting hundreds of sites Giving customers maximum choice * Ethernet Virtual Private Line 9 9

10 Service Wrap of a Competitive Portfolio (Cont.) Creating vertically tailored solutions: F or example: banking, medical, government, retail, etc. Cloud enablement helping clients migrate their IT to a cloud environment Global operations and customer support P resenting clients international on-the-ground and multi-lingual s upport P rocurement of equipment locally and putting a technician on site 10 10

11 Roadmap: Network Developments Reach Extended access & off-net partners E-NNIs and MPLS interconnections Converged multiservice access Ethernet access to IP VPN Resilience Submarine cable investments Route diversity * VPLS VPLS footprints are growing Improved multiple end-point stability IEEE 802.1ah * Virtual Private LAN Service 11 11

12 Roadmaps: What s Next? Incremental and organic improvements to service management and customer support T his can include opening new s ales & tech s upport office in a given location Support for burstable bandwidth, bandwidth-ondemand Leveraging new standards for Ethernet Operations, Admin and Maintenance (OAM) Improving loop-tes ting, fault is olation, and s o on 12 12

13 Roadmap: What s Next? (Cont.) Improvements focus is more a case of fine-tuning for example: E volving converged access including for example growing E thernet acces s to IP V P N capabilities worldwide Online monitoring tools are being improved adding for example ordering, order status checks, billing, etc. T ighter integration between IP VP N and E thernet 13 13

14 Global Data WAN Players a Market Snapshot U.S. Leaders: AT&T followed by Verizon both players have broad choice and national/regional coverage S trong contenders: Level 3, Global Crossing, S print, Q wes t, Mas ergy, XO PAE T E C increas ing momentum in networking tw telecom early mover in E thernet, and C ox forward-looking for a cable player E U Leaders: O range & B T s trongest MP LS and operational footprints Telefónica is an emerging threat T-Systems - powerful IT cons ulting K P N innovative VPLS in 22 countries S everal incumbents hold regional upperhand ex. B elgacom, Swisscom, Aus tria Telekom, etc. Other s olid players : AT &T, Interoute, C olt, G lobal C rossing, C &W and Verizon A-PAC Leaders: S ingtel, Tels tra International & Tata good reach and broad options C&W, AT&T, B T, Orange and Verizon competitive, but need local partners S trong contenders : NT T C om, R eliance, P C C W G lobal and HG C 14

15 The Global Network Services Tracker Global Network Tracker The new Current Analysis Global Network Tracker provides a competitive database of the countries where the leading global carriers support VPLS and MPLS IP services, and Ethernet and DSL access services. Product Overview The Global Network Tracker includes: Access to a Global Network Database of global MP LS and E thernet coverage, own PoPs and NNIs of leading global carriers (updated 2x year). Market Trend Advisory Reports Market commentary on the global network operator market, new network expans ion, partners hips, MNC bid activity, and competitivenes s (2x year). Global Network Alerts C oncis e impact analys is reports covering related announcements/events (Ongoing). MPLS/VPLS /DSL/Ethernet Competitiveness Ratings Analys ts call out which carriers are competitive by region for MPLS, VPLS and DS L and E thernet access services. Analyst Inquiry Talk to an expert. Analys t inquiry time is bundled in with s ubs criptions to the G lobal Network Tracker

16 The Global Pecking Order: MPLS Coverage North America Latin America Asia Pacific Mid-East/Africa East Europe West Europe AT&T Strong Competitive Strong Competitive Competitive Competitive BT Global Services Strong Competitive Strong Competitive Strong Strong Cable&Wireless Concerns Uncompetitive Strong Uncompetitive Competitive Competitive Deutsche Telekom/T-Systems Competitive Concerns Competitive Uncompetitive Strong Strong Global Crossing Strong Strong Concerns Concerns Concerns Strong NTT Communications Competitive Uncompetitive Strong Uncompetitive Uncompetitive Concerns Orange Business Services Strong Competitive Competitive Competitive Strong Strong Reliance Globalcom Competitive Concerns Competitive Competitive Concerns Competitive SingTel Concerns Uncompetitive Competitive Uncompetitive Uncompetitive Concerns Sprint Strong Competitive Competitive Competitive Concerns Competitive Tata Communications Competitive Uncompetitive Strong Strong Competitive Competitive Telefónica Competitive Strong Concerns Competitive Strong Strong Telstra International Competitive Concerns Strong Competitive Uncompetitive Concerns Verizon Business Strong Competitive Strong Competitive Competitive Strong KEY: Strong Competitive Concerns Uncompetitive Above average MPLS coverage based largely on own infrastructure and competitive access (DSL and Ethernet). Average MPLS coverage based largely on in-country NNIs, DSL and Ethernet access. Below average MPLS coverage in the region; limited DSL and Ethernet access. Little or no presence in the region

17 DSL Competitiveness North America Latin America Asia Pacific Mid-East/Africa East Europe West Europe AT&T Strong Concerns Competitive Uncompetitive Concerns Strong BT Global Services Strong Uncompetitive Competitive Uncompetitive Concerns Competitive Cable&Wireless Uncompetitive Uncompetitive Uncompetitive Uncompetitive Uncompetitive Competitive Deutsche Telekom/T-Systems Competitive Strong Strong Strong Strong Strong Global Crossing Uncompetitive Uncompetitive Uncompetitive Uncompetitive Uncompetitive Competitive NTT Communications Uncompetitive Uncompetitive Uncompetitive Uncompetitive Uncompetitive Uncompetitive Orange Business Services Strong Strong Strong Competitive Concerns Strong Reliance Globalcom Competitive Strong Strong Competitive Strong Strong SingTel Uncompetitive Uncompetitive Concerns Uncompetitive Uncompetitive Uncompetitive Sprint Uncompetitive Strong Strong Competitive Concerns Strong Tata Communications Competitive Uncompetitive Concerns Concerns Uncompetitive Competitive Telefónica Competitive Concerns Competitive Concerns Strong Strong Telstra International Competitive Concerns Concerns Uncompetitive Uncompetitive Concerns Verizon Business Strong Uncompetitive Competitive Concerns Concerns Competitive KEY: Strong Competitive Concerns Uncompetitive Above average DSL access throughout region. Average DSL access options in region. Below average DSL access in the region. Little or no presence in the region

18 VPLS Competitiveness North America Latin America Asia Pacific Mid-East/Africa East Europe West Europe AT&T Strong Uncompetitive Competitive Uncompetitive Uncompetitive Strong BT Global Services Uncompetitive Uncompetitive Uncompetitive Uncompetitive Uncompetitive Competitive Cable&Wireless Competitive Uncompetitive Uncompetitive Uncompetitive Concerns Strong Deutsche Telekom/T-Systems Uncompetitive Uncompetitive Uncompetitive Uncompetitive Uncompetitive Uncompetitive Global Crossing Strong Competitive Competitive Uncompetitive Uncompetitive Strong NTT Communications Competitive Uncompetitive Strong Uncompetitive Uncompetitive Concerns Orange Business Services Uncompetitive Uncompetitive Uncompetitive Uncompetitive Concerns Competitive Reliance Globalcom Strong Uncompetitive Competitive Concerns Uncompetitive Competitive SingTel Competitive Uncompetitive Strong Concerns Uncompetitive Concerns Sprint Uncompetitive Uncompetitive Uncompetitive Uncompetitive Uncompetitive Uncompetitive Tata Communications Strong Competitive Strong Concerns Concerns Strong Telefónica Uncompetitive Uncompetitive Uncompetitive Uncompetitive Uncompetitive Uncompetitive Telstra International Competitive Uncompetitive Strong Uncompetitive Uncompetitive Concerns Verizon Business Strong Competitive Strong Uncompetitive Competitive Strong KEY: Strong Broad VPLS availability across region. Competitive VPLS availability to less than half of countries in the region where carrier has a presence. Concerns Minimal VPLS availability in the region. Uncompetitive No VPLS availability in the region

19 Key Takeaways: To be Competitive You Need A broad service portfolio covering both IP VPN and Ethernet VPN options to give choice Ethernet service enrichment generally lags that of more mature IP VPN, therefore improvements offer chances to differentiate your offer for example: A single Integrated Layer 2 and Layer 3 online monitoring C ons is tent C os across Layer 2 and Layer 3 offerings Layer 2 E ncryption 19 19

20 Key Takeaways: Emphasize Global Reach Go-to-market and global brand enforcement Highlighting local and regional strengths over rivals Partner policies and NNIs 20 20

21 Key Takeaways: Large-scale Global Providers Scale Global operations & subsidiaries Stability and financial backing Human resources for complex consulting Network MPLS investment Managed IP services capabilities IP traffic engineering skills Maturity Proven in international deployments Installed base for up-sell and cross-sell Organically improve product suite 21 21

22 Key Takeaways: Alternative Operators Streamlined corporate structure & NGN Customer-centricity & flexibility Less complex back-office IT stack for quotes, orders & provisioning 22 22

23 Q&A Thank you 23 23

24 Thank You F or more information, please contact Joel Stradling Senior Analyst +972 (0) jstradling@currentanalysius.com Washington, D.C Signal Hill Plaza, Suite 200 Sterling, VA 20164, United States Phone Toll free Fax Paris, France Bureaux de Sèvres - 2, rue Troyon Sevres Cedex, France Phone +33 (0)