There are several trends in connectivity that stand to greatly impact the industry in 2019. Each of these trends places an emphasis on the network and location intelligence.
Hybrid Clouds Dominate The Enterprise Architecture
More and more Enterprises are turning to the cloud to store their data or run their applications; with most choosing a hybrid cloud. A hybrid cloud offers enterprises the scalability and cost benefits of a public cloud with the security and privacy of a private cloud. It is estimated that in approximately 75% of businesses choose hybrid cloud for the flexibility it provides. Network providers have an opportunity to benefit from the move to hybrid cloud. Network providers that leverage location intelligence to position their service to enterprises that have a significant fit to their network reach, as well as access to cloud on-ramps and third-party multi-tenant data centers will be in the best position to win.
5G Infrastructure Build-Out Accelerates
Technology’s latest iteration of wireless technology will include greater speed, lower latency, and the ability to connect more devices at once. It also will require more bandwidth, the proliferation of antennas and the fiber needed to enable them. To feed the appetite of this fifth-generation technology, infrastructure will either need to be refreshed or new fiber will need to be built-out, severely fragmenting the “last-mile” supply structure. For network providers there is the potential to capitalize on these build-outs, provided they possess the location intelligence to properly identify the optimal places to install and sell their connectivity.
Edge Becomes New Destination
This trend reflects the ways in which enterprises are adapting to meet consumer demands. Content, from the likes of providers such as Netflix, are being consumed in massive quantities and the consumer expectation is that it be delivered quickly, with little to no delay. To meet user expectations, enterprises are shifting from a centralized flow of traffic to “pushing” this content to users in a more distributed manner that is closer in proximity. Enterprises need to carefully select data centers in the proper locations and network providers with location intelligence have the means to assist with this process.
B2B Market Segment Trumps Consumer
Over the last few years carriers have shifted their focus away from the consumer segments and towards the business markets. With margins for business to business markets significantly higher, they not only pose a more lucrative return, but also create an opportunity to bundle managed services like security which reduces churn and creates a stronger customer relationship, versus the less profitable commodities offered by the residential market.
SD-WAN Catapults to Number One WAN Technology
SD-WAN (or Software Defined Wide Area Network) is an automated network control service that enables companies to connect remote locations without the need for expensive proprietary hardware or MPLS circuits from carriers. The technology has matured to a point that enables enterprise customers to decouple the last mile provider from the equation, enabling them to select the very best network for each location and gain both massive economic improvements, as well as substantial improvements in performance, flexibility and control. Network providers with location intelligence will be able to provide the optimal set of last mile connections quickly and efficiently, combined with the new SD-WAN managed services to increase their ability to win as the enterprise makes the technological shift.
2019 Top 5 Predictions
Each of these predictions will offer tremendous growth for participants in the connectivity space who are willing to adopt a location-first mindset. Once achieved a location strategy will empower organizations to not merely survive in the new world but flourish and thrive.
Learn more about how location intelligence can be used to capitalize on telecom trends in 2019.