Tracking five global trends

January 21, 2014 0 comments

In January we always look back and analyse the key trends we have seen, based on all sales requests and orders of the last year. Check below the five key trends we believe are shaping the future:

1. Fast growing need for Dedicated Internet Access (DIA), typically based on fiber for bursting and scalability;

2. Managed WiFi Guest Access including secure Internet access and User Access Management across all offices;

3. More than 90% of Internet VPN sites required “local Internet break-out” with web security (using Zscaler or Scansafe);

4. Growing need for Internet access with optimal latency for high and predictable application performance;

5. Increased number of requests from carriers to take over circuits due to consolidation of their supplier base.

(1) Fast growing need for Dedicated Internet Access (DIA), typically based on fiber for bursting and scalability

This development is not new. However, using DIA (Dedicated Internet Access – uncontended) above BIA (Broadband Internet Access – contended) is a trend that more and more multinational companies adopt, as today in fact all office locations need a high speed symmetrical Internet connection to access their public Cloud applications (e.g. Google Apps, Salesforce, Box, ServiceNow, etc.) and/ or build Internet VPNs. What is new is that a fast growing share of all DIA requests include the requirement for fiber as the underlying bearer. As customers need to be able to scale up to higher speeds quickly, fiber is the only future-proof option. In 2014 our new back office system will therefore include enhanced “lit buildings” information and API features allowing us to instantly know which suppliers are on-net, and provide immediate firm pricing. Today, over 80% of our Internet business is based on DIA.

(2) Managed WiFi Guest Access including secure Internet access and User Access Management across all offices

In early 2013 we saw the first global RFPs for managed WiFi based Guest Access. Most requests included:

  • Delivery, installation and operation of the WiFi      equipment (access points and controller).
  • Internet access with web security (Zscaler or      Scansafe).
  • “User access management” including customizable splash      page across all office locations.
  • The total solution must be completely separated      from the end customer’s existing LAN and WAN infrastructure.

Expereo delivered a variety of WiFi solutions in 2013. We have built end-to-end solutions (Expereo provided WLAN) using leading WiFi vendors such as Ruckus Wireless, Aruba Networks and Cisco Meraki. We have also provided WiFi where we use the already existing on-site WiFi controller and access points (customer provider WLAN). Both designs include a portal with user and network analytics.
(3) Migration from MPLS to Internet VPN with Local Internet Breakout (split tunneling) and Web Security

We have seen a fast growing number of end customers migrating from MPLS to Internet VPN. More than 90% of the Internet VPN solutions come with local Internet breakout (split tunneling). Sites with local Internet breakout are increasingly using web security (for threat protection, cloud application and social media control, anti-virus and anti-spyware, dynamic URL filtering, etc.). We see Zscaler and Scansafe as the leading solutions in this space.
(4) Growing need for Internet access with optimal latency for high and predictable application performance

Latency of DIA services and/or Internet VPN connections becomes more and more important. Especially when migrating from MPLS to Internet VPN, customers want at least the same latency performance.

The great thing here is that as an aggregator of all key networks in each market, Expereo has the ability to select the network suppliers with the best price / latency performance. Additionally, in Q1 2014 we will complete the roll out of Optimized IP to every Expereo POP location. This feature allows us to build Internet access services with optimal IP routing and provide shortest latency for Internet VPN tunnels terminating at our POP locations.
(5) Increased number of request from carriers to take over circuits due to consolidation of their supplier base

Supplier consolidation has been on the agenda for many international carriers. Most have too many suppliers with too little volume. The Total Cost of Ownership (TCO) does not justify having so many (small) direct relationships.

As we have built a continuously expanding global aggregation infrastructure, we demonstrated we can ‘take-over’ these ‘low volume’ suppliers and therefore provide cost reduction, maximum reach, diversity and ease of use. Key markets today are North America, UK, Benelux, Germany, Japan, Hong Kong, China, Malaysia, Singapore, Indonesia and Australia.

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