& cplSiteName &

Telefónica Enters SD-WAN Fray With Nuage Deal

Iain Morris
5/10/2017
50%
50%

Spain's Telefónica is poised to launch an SD-WAN service in its domestic market later this year after striking a deal with Nokia's Nuage Networks business.

Under the deal announced today Nuage Networks will provide SD-WAN technology based on its Virtualized Network Services platform.

Telefónica said that its international division and other subsidiaries would introduce SD-WAN services following a launch in Spain in the second half of 2017.

The service, it is promised, will allow Telefónica's enterprise customers to order and customize WAN offerings through a self-service web portal.

The move follows the introduction of SD-WAN services by a number of other major telcos in the last year, and comes amid concern about the interoperability of vendor equipment and the likelihood of further consolidation in the overcrowded supplier market. (See Tata, Colt Take Vendors to Task on SD-WAN Interoperability.)

Earlier this month Cisco Systems Inc. (Nasdaq: CSCO) paid $610 million for SD-WAN startup Viptela in what seems unlikely to be the only M&A transaction in this area this year. (See Cisco Snaps Up Viptela.)

The possibility of consolidation appears to have fueled service provider anxiety about interoperability, with telcos worried that SD-WAN suppliers might disappear as a result of takeover activity and leave them stranded.

That concern could itself be the catalyst for a shakeout, prompting operators to strike deals with the very biggest players and avoid the SD-WAN startups.

Such a development would clearly suit the likes of Cisco and Nuage, which has also recently landed SD-WAN deals with UK-based Vodafone Group plc (NYSE: VOD) and China Mobile Ltd. (NYSE: CHL).

Even so, the IP networks and applications division to which Nuage belongs has had a difficult financial start to the year, recently reporting a 10% decline in sales for the first quarter, to about €1.3 billion ($1.4 billion), compared with the year-earlier period.


Want to know more about the emerging SDN market? Check out our dedicated SDN content channel here on Light Reading.


Interestingly, both Cisco and Viptela had been SD-WAN suppliers to US-based Verizon Communications Inc. (NYSE: VZ) before their takeover deal, suggesting that interoperability is not always a problem.

On the other hand, that particular deal means that Verizon is now using a single supplier on SD-WAN.

Trumpeting Verizon's "multivendor" approach during the MPLS, SDN and NFV World Congress in Paris in March, Peter Konings, the operator's director of products for the EMEA region, told conference attendees that Verizon was planning to add another vendor into the mix in the near future.

From a customer perspective, SD-WAN services have been touted as an alternative to old-fashioned MPLS technology for companies that want to slash expenses by running applications over lower-cost Internet connections.

According to a Heavy Reading survey carried out in late 2016, more than 80% of respondents rated SD-WAN technology as either critical or important for telcos looking to automate operations and reduce service costs. (See SD-WAN Boom Coming in Next 2 Years.)

About two thirds of respondents reckoned wide-scale rollouts would occur over the subsequent 24 months.

— Iain Morris, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, News Editor, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
Infinera's Sales Director Paints Tech's Big Picture

6|21|17   |   4:14   |   (2) comments


Shannon Williams, Infinera's director of sales, shares how she achieves work's many balancing acts -- between her role and the broader company, today and tomorrow's tech and more.
LRTV Custom TV
SD-WAN Innovation & Trends

6|20|17   |     |   (0) comments


Versa CEO Kelly Ahuja discusses with Carol Wilson the current status and trends in the SD-WAN market, Versa's innovation around building a software platform with broad contextualization, and the advantages that startups can bring to the SD-WAN market.
LRTV Interviews
Ovum's Dario Talmesio on 5G in Europe

6|20|17   |   02:16   |   (0) comments


At 5G World 2017, Dario Talmesio, principal analyst and practice leader on Ovum's fixed and mobile telecoms European team, explains the emerging trends amongst European operators as they prepare for 5G.
LRTV Custom TV
Putting Power on a Pedestal

6|19|17   |     |   (0) comments


ARRIS's John Ulm says a major accomplishment of SCTE•ISBE's Energy 2020 program is increased focus on power cost and consumption, including inclusion of energy requirements in operators' RFPs and RFIs.
LRTV Custom TV
Gigabit Access: The Last-Mile Pipe for All Future Services

6|19|17   |     |   (0) comments


A Gigabit access platform being deployed today must be able to deliver all types of services to an increasing number of devices. A non-blocking architecture is necessary to support the ever-increasing growth in bandwidth demand. The Huawei Gigabit access solution is based on a distributed design that is fully scalable to deliver a unprecedented performance.
LRTV Custom TV
Key Factors to Successfully Deploy an SD-WAN Service

6|19|17   |     |   (0) comments


As service providers transition their SD-WAN solution from trials and limited deployments into production at large scale, there are important considerations to successfully operationalize these solutions and realize their full potential, without adding complexity, introducing uncertainty or disrupting current business operations. Sunil Khandekar, CEO and Founder ...
LRTV Custom TV
IoT Solutions: Rational Exuberance

6|19|17   |     |   (0) comments


IoT solutions are morphing from hype into viable business opportunities. Huawei has the platform and ecosystem support to help carriers successfully address new business opportunities in the IoT space.
LRTV Custom TV
Realizing ICN as a Network Slice for Mobile Data Distribution

6|19|17   |     |   (1) comment


Network slicing in 5G allows the potential introduction of new network architectures such as Information-centric Networks (ICN) as a slice, managed over a shared pool of compute, storage and bandwidth resource. Services over an ICN slice can benefit from many architectural features such as Name Based Networking, Security, Multicasting, Multi-homing, Mobility, ...
LRTV Interviews
Ovum's Mike Roberts on 5G Uptake

6|19|17   |   04:08   |   (0) comments


Mike Roberts, research director for Ovum's service provider markets group, explains why he has boosted his 5G subscriptions forecast.
LRTV Interviews
AT&T's Hubbard on Intersection of SD-WAN & MPLS

6|15|17   |     |   (0) comments


Rick Hubbard, SVP of Network Product Management for AT&T Business Solutions, discusses how AT&T's approach to SD-WAN fits in with its overall virtualization strategy, explains how SD-WAN can improve enterprise customers' use of the cloud and addresses the intersection of SD-WAN and MPLS.
Telecom Innovators Video Showcase
Keep Connected IoT Devices Under Control With Allot

6|15|17   |     |   (0) comments


Allot AVP of International Pre-Sales, Daniel Keidar, explains how communications service providers can protect infrastructure and service availability from flooding attacks caused by malfunctioning or bot-infected devices connected to their network.
LRTV Custom TV
ZTE 5G World Highlights

6|15|17   |     |   (0) comments


ZTE showcases its leading 5G innovations at 5G World in London.
Upcoming Live Events
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Montcalm Marble Arch
November 1, 2017, The Montcalm Marble Arch
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Verizon Warns of $500M Hit From Yahoo Deal
Iain Morris, News Editor, 6/16/2017
Netflix's Lesson in Culture Expectation Settings
Sarah Thomas, Director, Women in Comms, 6/21/2017
Kalanick Steps Down as Uber CEO
Sarah Thomas, Director, Women in Comms, 6/21/2017
BT Tech Chief Makes Plea to 5G Chip Vendors
Ray Le Maistre, International Group Editor, 6/20/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.