With the rise of the cloud era, enterprises are experiencing a significant increase in bandwidth demands for data interaction. Telecom operators are now realizing that combining SD-WAN solutions with traditional enterprise lines can offer unique value and meet evolving customer needs. This hybrid approach aims to address the high costs, slow response times, and complex management associated with traditional enterprise lines. By offering ready-to-use, cost-effective, and cloud-visualized services, telecom operators can reshape the entire enterprise line experience.
Historically, due to stricter network quality and security requirements, enterprise lines have been significantly more expensive than home broadband. For the same bandwidth, corporate line pricing is typically 8–10 times higher. In today’s fast-paced business environment, where speed and efficiency matter, these high costs and long setup times have become major barriers for companies undergoing digital transformation. As a result, the demand for cloud-based solutions is growing rapidly, with enterprises seeking more convenient and affordable line options.
In response, many internet companies have introduced SD-WAN on-demand lines, which are gaining popularity among SMEs. These solutions use encryption and network segmentation to enhance security, allowing secure data transmission over regular internet lines. Additionally, SD-WAN lines can reduce costs by up to 50% compared to traditional dedicated lines. With features like flexible bandwidth selection and service-based scheduling, they are increasingly adopted by large multinational corporations for connecting headquarters and branches. It's estimated that by 2022, 30% of the global market will be driven by SD-WAN lines.
As digital transformation accelerates, the cloud has become a central trend. However, the high cost and lengthy setup time of traditional enterprise lines have forced many businesses to rely on standard internet connections. This shift has impacted telecom operators’ traditional revenue streams. Recognizing this, operators are now focusing on developing SD-WAN solutions that combine the strengths of their existing infrastructure with the flexibility and cost-effectiveness of modern technology. This not only helps retain existing customers but also attracts those previously using internet-based alternatives.
**Competition is inevitable. What are the advantages of telecom operators developing SD-WAN?**
Leveraging their own network resources, telecom operators can create differentiated SD-WAN solutions. Traditional operators already have extensive network infrastructures, giving them a natural advantage in integrating and managing dedicated line resources. Within a single carrier network, operators can combine IP network slicing and data center optical networks to deliver high-quality, low-latency SD-WAN services. For cross-carrier SD-WAN lines, they can quickly access cost-effective network resources that internet companies lack, enabling fast deployment of international and intercontinental services.
Operators can also leverage their existing high-value customer base by offering hybrid line solutions that complement traditional MPLS lines. While MPLS still dominates the market, telecom operators can provide customized hybrid services based on business routing to retain key clients.
By promoting cloud integration, operators can tap into the growing enterprise cloud market. SD-WAN’s on-demand bandwidth and quick deployment capabilities allow enterprises to scale their network needs efficiently. This aligns with the broader trend of cloud adoption, helping operators expand their public and private cloud offerings while maximizing customer value.
With its flexibility, cost-efficiency, and ease of deployment, SD-WAN is becoming a preferred choice for both operators and enterprises. More than 20 operators, including Japan’s Softbank, are planning or launching SD-WAN services for enterprises. Thousands of companies are either using or planning to adopt SD-WAN lines.
The development of SD-WAN by telecom operators is not just a survival strategy for traditional enterprise lines—it’s a way to protect the existing market from internet-based alternatives. By leveraging SD-WAN, operators can stimulate cloud-driven enterprise growth, redefining the private line market and enhancing their position in the cloud ecosystem.
**SD-WAN Definition**: SD-WAN stands for "Software-Defined Wide Area Network." It uses software to optimize network performance, reduce costs, ensure security, and simplify deployment. Features like intelligent routing, data optimization, and TCP/IP enhancement make it ideal for enterprise wide area networks. From an enterprise perspective, SD-WAN functions similarly to a high-performance VPN, which was originally designed for secure internal communication.
Huawei’s SD-WAN solution is part of the Huawei CloudEPN (Cloud Enterprise Private Network) suite, offering comprehensive connectivity and cloud integration for enterprise users.
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