To keep up with the speed of business and ride on the wave of digital transformation, many enterprises are looking past legacy WAN architectures to move their applications to the cloud. SD-WAN supports cloud migration and can boost agility, alleviate costs and reduce network complexities associated with MPLS. By shifting an increasing amount of WAN traffic to the public Internet, enterprises can reduce IT spending on non-critical, non-real time applications.
For carrier CIOs and their teams, there are two very important questions: What does the entrance of SD-WAN mean for MPLS? Is MPLS a sustainable IT model or will it be slowly replaced by SD-WAN?
Read on to see how evolving WAN approaches and SD-WAN and hybrid WAN trends serve as areas of opportunity for carriers.
Market opportunity: cloud computing drives business innovation
“By 2022, public cloud services will be essential for 90% of business innovation.”
If there is one phenomenon that is disrupting IT services today, it is the growth and adoption of cloud computing. Within three years, the market size for cloud is projected to reach $317 billion, with a compound annual growth rate (CAGR) of 16.9% through the same period.
Organizations are increasingly moving toward digitizing their business and their business model offerings, and revenue growth is centered around a cloud strategy. This includes adoption of various cloud models, including hybrid cloud and multi-cloud.
Enterprises that seek to lead through business innovation often use multiple cloud service providers to leverage the best services for their unique applications.
Augment business models with SD-WAN complementing MPLS
78% of organizations that have SD-WAN in place say that they won’t be shutting down MPLS operations. However, most intend to cut back on usage over the next few years. This means that carriers have an opportunity to partner with SD-WAN providers to create additional value for enterprise customers and generate recurring revenue.
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