& cplSiteName &

Adding Up the SDN Effect

Craig Matsumoto
5/3/2012
50%
50%

4:50 PM -- Few customers have really plunged into software defined networking (SDN), but the technology is going to be a bigger fact of life for equipment vendors, and that's something to worry about.

Numbers from Brian Marshall, an analyst with ISI Group Inc. , seem to support that. In a report published Wednesday, Marshall claims that in five years, the capex budget of the "Web 2.0 Big Six" will equal that of AT&T Inc. (NYSE: T) and Verizon Communications Inc. (NYSE: VZ) -- roughly $37 billion.

(The big six are Amazon.com Inc. (Nasdaq: AMZN), Apple Inc. (Nasdaq: AAPL), eBay Inc. (Nasdaq: EBAY), Facebook , Google (Nasdaq: GOOG) and Yahoo Inc. (Nasdaq: YHOO).)

The analysis isn't talking about all service-provider capex, just the two big U.S. telcos. But considering how much concern AT&T's budget generated coming into 2012, it seems noteworthy that the Gang of Six could eventually wield purchasing power that could make or break vendors' quarters. (See Carrier Capex Could Rebound Quickly.)

The difficulty for equipment vendors is that while telcos sought out exacting standards and reliability, the Web 2.0 companies mainly want stuff to be cheap. That leaves Marshall "somewhat concerned longer-term by initiatives aimed at taking costs out of their IT infrastructure," he writes, citing Google and Yahoo's interest in OpenFlow, and Facebook's Open Compute Project. At Interop next week, I expect every switch and router vendor to be pitching an SDN story, arguing why the technology won't commoditize their markets. They could be right, but Marshall is probably correct in saying that a growing chunk of the business will be directed at customers who wouldn't mind a commoditized market. Vendors have to play along with SDN, but SDN isn't necessarily their friend.

— Craig Matsumoto, Managing Editor, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
jggveth
50%
50%
jggveth,
User Rank: Light Beer
12/5/2012 | 5:34:08 PM
re: Adding Up the SDN Effect


The boogeyman for hardware has a new face ... and it is real and getting comfortable in Cisco's closet. Will be scary when it comes out.

Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 5:34:08 PM
re: Adding Up the SDN Effect


That's a good way to put it.


I do think there's credence to Dave Ward's talk about SDN and Cisco, how the increased importance of policy and analytics can give Cisco a wider role in the network.


But, there's a growing customer segment that doesn't care about any of that, and just wants a really fast switch that it can have greate control over.


I don't think SDN means the end of Cisco, just as Huawei hasn't meant the end of Cisco. But like Huawei, SDN has the potential to make life uncomfortable for everybody in the sector.


(David Ward link:


http://www.lightreading.com/document.asp?doc_id=220094 )

gotman
50%
50%
gotman,
User Rank: Light Beer
12/5/2012 | 5:34:03 PM
re: Adding Up the SDN Effect


It's a storm in a tea cup really... thats SDN in a nutshell

Featured Video
From The Founder
Light Reading is spending much of this year digging into the details of how automation technology will impact the comms market, but let's take a moment to also look at how automation is set to overturn the current world order by the middle of the century.
Flash Poll
Upcoming Live Events
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 2, 2017, 8 Northumberland Avenue – London
November 10, 2017, The Westin Times Square, New York, NY
November 16, 2017, ExCel Centre, London
November 30, 2017, The Westin Times Square
May 14-17, 2018, Austin Convention Center
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
Muni Policies Stymie Edge Computing
Carol Wilson, Editor-at-large, 10/17/2017
'Brutal' Automation & the Looming Workforce Cull
Iain Morris, News Editor, 10/18/2017
Worried About Bandwidth for 4K? Here Comes 8K!
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 10/17/2017
What Does Automation Mean to You?
Ray Le Maistre, International Group Editor, 10/17/2017
Animals with Phones
Selfie Game Strong Click Here
Latest Comment
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed
Partner Perspectives - content from our sponsors
The Mobile Broadband Road Ahead
By Kevin Taylor, for Huawei
All Partner Perspectives