The corporate transition to public networks is lighting up new areas of interest in dark fiber, said CenturyLink's president of enterprise and government markets during an investor presentation.
Enterprises need to maintain security levels as they slowly transition from on-premises compute connected by virtual private networks (VPNs) to managed cloud services running over broadband, said CenturyLink's Ed Morche, speaking at Cowen and Co.'s 47th Annual Technology, Media & Telecom Conference in Manhattan. CenturyLink is one of the country's largest dark fiber providers, said Morche, who came to the company from its acquisition of Level 3.
As large enterprises split their businesses and adopt public networks, they're deploying multiple approaches with partners, he said. Branch or remote offices often use broadband and managed SD-WAN, said Morche. More critical sites, those conducting research or holding intellectual property, will stick with dedicated VPNs, he noted.
"And if they need fiber for that super security -- think of Big Pharma with that intellectual property -- we'll let them manage it or we'll manage it on their behalf with a managed optical-fiber network solution," said Morche. "We see that change from private to public also promoting a lot of our dark fiber opportunities. We love dark fiber. Where we have applications that require it, we certainly promote it. We are one of the largest dark fiber providers in the country."
Enterprise adoption of hybrid environments continues to rise: By one estimate, 80% of enterprises will no longer have traditional data centers by 2025, compared with 10% in 2018, according to Gartner. As a result, businesses need a portfolio of partners, to place workloads within digital infrastructures based on business need, and adopt the right tools for monitoring and managing processes and assets, wrote David Cappuccio, managing vice president and chief of research for the Infrastructure teams at Gartner.
Added Morche: "We want to stay away from reselling services and want to focus on owning services. When we own that and we own that cost structure we're very happy with that margin performance. [Enterprises] want a partner who will help them move into a hybrid environment ... Most want it broken up into various sites -- branch locations, critical and hypercritical locations -- and they want guidance."
On Jan. 23, Broadband World News hosts a Calix-sponsored webinar that explores several ways CSPs can enhance customer experience and find new business opportunities to avoid devolving into a speed race where nobody wins, not even the customer.
As the pool of savvy, fiber-rich operators across the US rural and regional landscape wanes, the financial community will grow even more interested in acquiring or investing in them, a CoBank report says.
It wasn't long ago that TV was ranked by subscribers as the most important service in the bundle provided by their communications service provider (CSP). Recent research indicates that for nearly three quarters of subscribers, broadband is now the most important service. Broadcast TV is the most important service to only 15% of North American consumers, replaced by OTT video streaming platforms like Netflix, Amazon Prime and Disney+. In addition, many different competitors are moving aggressively to stake a claim in consumers' homes.
In 2020, CSPs need to fight back by transforming their business models, which are becoming more reliant on a single source of revenue: fixed broadband services.
This webinar will focus on helping CSPs transform their business models by placing a firm focus on delivering a sensational subscriber experience and by offering compelling new services that generate value for subscribers. These actions will reinforce the CSP's strategic position in the home network and position themselves for growth in the next decade.
Key topics include:
Being the first to market with WiFi 6 technology, in response to consumer purchases of new devices over the holidays;
Having the insights needed to proactively resolve issues, often before your subscribers even know that there are issues;
Providing help desk agents with the visibility they need to resolve common subscriber issues more quickly;
Delivering a mobile app, in response to consumer demands for the ability to do some things themselves, rather than having to call technical support; and
Addressing consumer concerns around device security, privacy and control with enhanced security and parental controls.
In this insightful Light Reading radio show, Kurt Raaflaub, Head of Strategic Solutions Marketing, will outline the key service provider challenges, deployment considerations, next-gen Gigabit technologies, and service models to win market share in the rapidly growing MDU market.