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DOShea
DOShea
11/24/2013 | 9:09:20 PM
Re: Bandwidth-On-Demand revenue potential
These service levels are a good way to think about how bandwidth-on-demand revenue opportunities would work, though figuring out how pricing will shake out is another challenge.
jimmorin
jimmorin
11/22/2013 | 11:55:34 AM
Bandwidth-On-Demand revenue potential
On-demand services have a healthy potential to grow incremental revenues as differentiated services, rather than pure on-demand bandwidth.  For example, carriers will be able to differentiate service levels – something like:

-           "guaranteed premium" that guarantees bandwidth on request

-          "best effort" that might be temporarily blocked but available later

-          and "programmed" that can be scheduled only during certain off-peak times

When thought of as "Performance-on-Demand", even more options for new revenue sources are possible, such as new network services differentiating by path or latency.

On-demand cloud infrastructure services have taken many different forms to meet new and growing customer niches, and on-demand bandwidth will likely follow a similar path.  
tojofay
tojofay
11/21/2013 | 1:02:35 PM
Re: Not too surprising
TSIC reports that its revenues in North America have doubled over the past two years

"...TSIC its 2012 technology/service wholesale innovation award for its
"100GB bandwidth on demand" service based on the company's use of the DTN-X in North America,
noting that "this technical innovation provides a more flexible option for TSIC's customers and a faster
upgrade path from multiple 10G and 40G services."

Ovum

Reference Code: TE008-001384-SR

 
Ray@LR
[email protected]
11/21/2013 | 9:55:47 AM
Re: Not too surprising - ROI challenge!
"Instead they will be investing in virtrualization and new control/policy systems that let them use what they have more efficiently. "

 

I wonder if the service providers are abl/will be able to quantify the financial/income benefits of those technologies?

 

It seems like return on investment (ROI) equations are getting harder by the year...
Carol Wilson
Carol Wilson
11/20/2013 | 5:12:54 PM
Re: Not too surprising
Instead they will be investing in virtrualization and new control/policy systems that let them use what they have more efficiently. 
DOShea
DOShea
11/20/2013 | 4:53:16 PM
Re: Not too surprising
True. I think it will be interesting to see how the BoD evolution impacts the other side of things. I would think the ongoing need to invest in fatter pipes will begin to slow in a world where set-up and tear-down of needed bandwidth is time-stamped and and bandwidth as a whole made easier to manage.
Carol Wilson
Carol Wilson
11/20/2013 | 4:45:54 PM
Not too surprising
In my conversations with service providers offering BoD, they haven't said they expected more revenue - these services are being delivered more as a response to what their customers are demanding. 

That said, I'm sure the early movers hope and expect this will be a competitive advantage for them and in that sense, drive revenues. 


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