The Evolving Business Case for Broadband in the Enterprise WAN
At TC2 and LB3 we are continuing to cover the strategic shift in enterprise networking toward broadband. In this 7-minute episode, Tony Mangino joins Sara Crifasi to break down the business case for broadband and discuss how enterprise customers can leverage the opportunity for cost savings and enhanced connectivity. With appropriate planning, enterprises can weigh the practicalities and potential challenges of integrating broadband into their network strategies, gaining necessary foresight prior to engaging procurement.
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The Evolving Business Case for Broadband in the Enterprise WAN
In today’s rapidly evolving digital landscape, enterprise customers are increasingly turning to broadband internet services as a viable means to deliver connectivity at a compelling price point. This shift is driven by the need for more bandwidth and cost savings, making broadband a key player in the evolution of networking.
When customers began deploying SD-WAN solutions, the network transport underlay was primarily MPLS with some high-capacity dedicated internet access (DIA) ports sitting at the data centers. While MPLS is great, it is expensive. The cost of the transport underlay, combined with the one-time costs associated with deploying the SD-WAN solution, made the SD-WAN business case tenuous at best. Although there were observable improvements in data transfer efficiency and application performance, it came at a net cost to the business.
The key to shoring up the SD-WAN business case was identifying viable replacement transport technologies for the expensive legacy MPLS. The first step was swapping out an MPLS circuit for a DIA circuit at sites that were dual-threaded, delivering higher bandwidths at a lower cost per Mb. The next step was to transform away from MPLS to an “Internet First” strategy for remote site connectivity. This strategy mostly meant DIA until recently. Now, there is a strategic shift to deploying broadband internet service in the network, with reductions in the range of 40+% for broadband service over DIA and even greater savings when compared to legacy MPLS.
However, enterprise customers should not rip and replace their entire legacy networks with broadband. Instead, they should look at broadband where a site needs additional connectivity to complement an existing MPLS or dedicated internet circuit. Depending on the site type, application stack, and geography, there are likely sites where a high-capacity broadband circuit can become the primary source of connectivity. Fixed wireless also features prominently in the broadband internet conversation, typically as a secondary or tertiary connection with dual sims that can be spun up relatively quickly and cost-effectively.
One significant issue is the potential for special construction costs. Wired broadband is usually available from the local exchange carrier (LEC) in the area where the site resides. Even where you’re buying broadband from the LEC, there may be additional costs to pull circuits through existing conduit and into the facility. A viable alternative to the LECs are the cable companies, such as Comcast and Cox, which have significant footprints that may align with site needs. The most effective way of mitigating the potential impact of special construction is to source broadband requirements utilizing a competitive RFP process. This ensures the right supplier and technology mix based on requirements and footprint, bidding on the opportunity.
