The On Demand Business: leading the way to a new digital world

The On Demand Business: Enterprise connectivity for the digital era According to IDC, “as public and private cloud use continues to grow, WAN performance becomes critical to latencysensitive and mission-critical workloads and inter-datacentre business continuity.” Accordingly, as enterprises plan and implement comprehensive cloud strategies, WAN architectures need to be considered alongside, and in conjunction with, datacentre infrastructure. Moreover, as enterprises move business processes to the cloud, there is a greater need to fully integrate cloud-sourced services into WAN environments to ensure workload/application performance, availability, and security. Intelligent enterprises are software driven To address these issues, global business are now tapping into the power of next-generation network technologies like SDN (Software Defined Networking) and NFV (Network Functions Virtualisation). Analysts note that software-defined networking has already started to prove its worth in the datacentre by helping to improve agility and responsiveness – ensuring that datacentre networks can better meet the needs and demands, as well as match the benefits of cloud computing. The focus is now shifting toward wide area networks, which can also be optimised to meet the requirements of cloud applications and services. On Demand networks allow enterprises to concentrate on core business The adoption of an intelligent, software-defined network, means less time and resource spent on managing the network, and more time and resource to concentrate on core business, while benefitting from the visibility, agility and flexibility typically only found in a selfmanaged solution. Significant up-front capital expenditure is effectively eliminated and enterprises benefit from the budgetary certainty of having regular, predictable payments for the service. There is the additional benefit of allowing customers to dynamically scale up or down WAN bandwidth in line with core business needs. Thus efficiency is enhanced as the legacy practice of wasteful over-procurement of physical network ports is consigned to history and customers only pay for what they need. This model has the added advantage that the management overhead associated with ordering and managing multiple software licences for network equipment is no longer a time-consuming headache for enterprises. Selecting network services that can deliver enhanced levels of agility offers vital competitive advantage in today’s fast-paced business world, according to Carl Grivner, CEO, Colt Technology Services. “The network is the critical link to achieving a business’s key objectives, but international expansion, mergers, acquisitions, cloud adoption and wide-ranging integration all require network capacity that scales with the business. An intelligent network becomes an asset, with the capability to address mixed end-user and customer requirements, promoting on-demand distribution and consumption – to the right person at the right time, even anticipating future requirements,” he said. 3 The On Demand Business: Enterprise connectivity for the digital era “We are now able to build intelligence in, around and through the network, creating a service that is ‘bandwidth requirement intelligent’ for the end user but is enabled by automated collective management for the operator. This is a resource which allows an organisation to dynamically provision, or selfprovision, according to real time business requirements, which themselves are increasingly driven by user expectations and demands. Technologically this is a new era, but economically and commercially it’s even bigger than that.” On demand: leading the way to a new digital world The bottom line is clear: as today’s enterprises fully embrace digital transformation, wide area network bandwidth is becoming an ever-more critical requirement, a vital commodity in the same category as basic utilities such as power and water. In the emerging information-intensive economy, where ‘Uberfication’ is causing disruption in every sector, bandwidth must be delivered in a flexible and timely fashion where and when it is most needed. To facilitate this, global enterprises are taking control of their wide area networks and upgrading these critical resources to become truly digitally enabled. But with an explosion in cloud services taking place, traditional data center interconnect services such as Wave and Ethernet don’t offer the flexibility some enterprises need to interconnect multiple data center locations. Such drivers are changing requirements for bandwidth, and the need to change interconnection points periodically. In the era of the cloud, rather than the legacy practice of buying or building, and maintaining wide area network infrastructure inhouse, forward-looking corporates are partnering with trusted thirdparty service providers to benefit from the flexibility of on-demand carrier-grade services. Software is making the network more flexible, intelligent and better aligned to core business objectives and this in turn is giving enterprises the ability to maximise agility and power the digital transformation initiatives that are essential for future success. IDC predicts that by using network on demand, organisations will be able to reduce their total cost of operations related to their networking environments by an average of 10–28% compared with buying and operating the network equipment themselves. However, while cost is often cited as a main benefit of the on demand network, a significant proportion of organisations – around 18% according to one study by Spanish analyst TPNET – see the main benefit as a reduction of resources such as staff for management of the network, and also the flexibility to apply seasonal variations of network use as needed, to cater to key events or peak usage times. Consider the benefits automation has provided to mass market automobile consumers, enabling demands to be met from multiple car models to customised features and colours. Applied to the network, imagine the services that automation could enable, allowing businesses to further evolve their own portfolio; imagine how endconsumers could purchase those services in this digital era. 4
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