How 5G network operators can stay competitive and grow their business

By Shekar Ayyar (edited by Alan J Weissberger)

Introduction:

New services enabled by 5G and the cloud present a significant business opportunity, but upgrading existing network infrastructure to deliver these services can be a challenge amid the ongoing supply-chain disruptions and significant economic volatility.

But that’s exactly what communications service providers (CSPs) need to do to stay competitive and ensure that they have the right infrastructure for success in the future.

This article suggests  how this can be accomplished.   Let’s first look at 5G use cases as illustrated below:

Image Credit: https://www.rajarshipathak.com/2020/01/requirements-for-5g-network-monetization-solution.html

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Discussion:

1.  Introduce new services while being smart about infrastructure investments

5G requires an upgrade in network infrastructure to deliver more bandwidth, faster processing and lower latency. This transition impacts all parts of the network, from the access layer to the edge, across the transport layer and into the network core. And increasingly, it requires connectivity to multi-cloud environments, as several workloads are hosted there.

CSPs that are deploying 5G need to adopt agile, open, software-driven approaches and modern networks that are cost effective, efficient and programmable and allow them to deploy services at the edge all the way into the cloud. With the right technology, CSPs (and enterprises) are better positioned for new service creation to drive topline improvement, increase performance, enable quality of service and reduce costs to deliver bottom line improvement.

The right infrastructure can enable CSPs to launch new services like network slicing, multi-access edge computing (MEC) and multi-cloud networking (MCN), which can boost the top line in a world of declining average revenue per user (ARPU). Manufacturing automation is just one example of network slicing delivering benefits through dedicated bandwidth for IoT devices. And when network operators combine that with MEC in a low-latency environment, they can get much faster response rates to enable automation and machine learning in real time. In addition, MCN enables CSPs and co-location providers to offer secure multi-cloud connectivity to enterprises, on demand and as a service.

Software-based infrastructure that leverages compute resources delivers operational savings because it allows CSPs to use their infrastructure for many different use cases, which makes their networks much more efficient. This is akin to the efficiencies that virtual machines (VMs), which let multiple applications or instances run on a single server, brought to the data center.

2. Avoid doubling down on outdated tech, opt for next-gen programmable networks

Yet many network operators continue to rely on legacy networking equipment. That’s problematic because legacy networking technology is hardware-centric and tied to specific silicon choices, and does not deliver protection against supply-chain shortages and volatility. When CSPs and enterprises experience vendor lock-in, they become completely reliant and stake all aspects of their network on that one vendor: speed of innovation, pricing power and supply availability. This is risky, as evidenced by the recent chip shortages that all industries have witnessed.

But software-based networking can run on merchant silicon and purpose-built switch and router hardware, or on servers. It disaggregates the network stack, making it highly programmable for maximum agility; scales based on consumption; and works across the access network, edge and core. And it does all of the above using a single operating system, without requiring costly integration and in a way that lowers TCO and supply chain risk.

3. Disaggregated solutions break the stronghold that a single vendor can have on a CSP or enterprise.

By adopting this approach, CSPs and enterprises now have a broad choice of silicon as well as a wide range of off-the-shelf white-box platforms. Vendor diversification mitigates any supply-chain challenges. It also gives buyers greater pricing leverage.

And while CSPs and enterprises are controlling their costs and avoiding vendor lock-in, they get the modern networks that they need to move fast and effectively monetize 5G infrastructure.

CSPs and enterprises now have an important choice to make. Do they remain locked into legacy technology or attempt to integrate piecemeal open networking solutions? Or do they want to move into the future with minimal risk and maximum revenue potential and ease?

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Shekar Ayyar is chairman and CEO of Arrcus, the hyperscale networking software company and a leader in core-to-edge network infrastructure.

 

One thought on “How 5G network operators can stay competitive and grow their business

  1. Shekar Ayyar, chairman and CEO of Arrcus, sees a lot of upside for telcos wanting to create new network services. His optimism is rooted in the changes he sees in network infrastructure and a new kind of convergence between enterprise and service provider networks.

    His company, Arrcus, is a networking software company that provides core-to-edge network and transport infrastructure (all the routing and switching, with analytics and other services). In our conversation, recorded last month at MWC Las Vegas, Ayyar outlines three areas where telcos can take advantage of new technologies and converging networks to set themselves apart from cloud providers and software-as-a-service specialists.

    Ayyar spotlights edge computing and network security as two areas where network operators can make a difference. He also discusses SRv6 (Segment Routing Version 6) as a new development that simplifies routing and gives network operators more policy control over traffic.

    He said SRv6 could give network operators the ability to deliver services across converged IP and mobile networks with the same policies in place throughout. It “enables the mobile network to come closer to the IP network and make it more programmable, like the IP network,” Ayyar explains. Because of how the technology is implemented, Ayyar said SRv6 could excite enterprise application developers to build high-value services for telco networks in a way that wasn’t possible before.

    Enterprise developers build applications for specific cloud providers but rarely for mobile networks, which are treated as a separate piece of the infrastructure. SRv6 could change that.

    “This sort of innovation is now going to open up that marketplace, I would say, for people to jump in and build applications and network functions and then consume that from the enterprise,” Ayyar said.

    https://www.lightreading.com/routingswitching/arrcus-ceo-enabling-new-5g-network-services/v/d-id/781188

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