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A Future Proof Network Enables Digital Transformation Across the Entire Company

Thanks for tuning in the Part 2 of our series, “A CIO’s Guide to Network Infrastructure in the era of Digital Transformation”. In Part 1 we introduced Digital Transformation as it relates to Networking. In this section we will cover key concepts in how modern networking technology impacts value delivery across the entire organization.

What trends are driving changes in Networking

Before diving into the ways transformation in networking impacts organizations, it’s important to understand trends in work patterns and application usage that affect infrastructure requirements.


Four main factors have pushed legacy networks beyond their limits, an accelerating appetite for information, the cloud, a shift to remote work and increasing sophistication of cyber threats. Overall growth in bandwidth consumption for businesses is expected to be 42% CAGR through 2021 and as high as 98% growth in cloud related consumption. The Covid Pandemic has accelerated remote work patterns which require more advanced networking, while cyberthreats continue to grow more and more sophisticated while increasing in the risk they bring.


(https://www.forbes.com/sites/tomcoughlin/2018/09/24/bandwidth-growth-drives-storage-demand/#23293f7543be)


While bandwidth grows and network complexity increases, technological advances have both adapted to and shaped the role of networking. For example, use of AI in network management provides advanced capabilities to support application usage across branches, devices and end users by analyzing, identifying and then automatically addressing network optimization and security adjustments. According to Cisco, as many as 50% of network strategists consider AI as an essential investment in network planning.



(https://www.cisco.com/c/dam/m/en_us/solutions/enterprise-networks/networking-report/files/GLBL-ENG_NB-06_0_NA_RPT_PDF_MOFU-no-NetworkingTrendsReport-NB_rpten018612_5.pdf)


How Networking supports evolution in Corporate Applications

As demand for speed and accessibility for Corporate Applications grows, customer or branch focused applications need to deploy as close to the network edge as possible. The traditional user-branch-data center approach to application access model can no longer support the variety of devices, locations and connection types that need to reach central applications. In addition,cost and design requirements for new corporate applications lead to a distributed, multi-cloud environment, a combination of SaaS, IaaS and legacy on premise computing


According to Cisco, 75% of companies consider SaaS/IaaS support as important to their overall WAN and SD-WAN strategies and 98% of companies plan to implement some form of advanced SD-WAN within the next two years to support key enhancements in application support. These improvements include support for direct cloud access (the ability to route traffic directly to applications wherever they are versus transiting through a data center) and the ability to extend the corporate WAN into data centers and colocation facilities globally for distributed application services.

How Networking supports changes to work patterns

Even just a few years ago the shift to home based or remote work seemed like a slowly moving trend. The Covid pandemic instantly uprooted much of the resistance to work from home and exposed many challenges corporate networks face in supporting secure and reliable access.


The traditional work-from-home connectivity model uses a VPN, which has to be explicitly turned on or off and provides access to the corporate network while lacking key capabilities of SD-WAN for direct cloud access, intelligent routing and advanced security.

(https://searchnetworking.techtarget.com/tip/Working-from-home-could-expand-SD-WAN-edge-to-residences)


As more high skill workers choose to work from home the benefits of SD-WAN to provide the same network connectivity and experience as being in a branch may outweigh the costs. And, as work from home demands accelerate home based SD-WAN costs are likely to come down signaling a likely end to the era of VPN usage.

What the future of Corporate Applications and Networking will likely look like

There’s little doubt that legacy MPLS based WAN and the traditional branch-data center model of corporate applications and work patterns will be replaced almost entirely by virtualized SD-WAN networks with distributed, multi-cloud backend services.


A key emerging feature of SD-WAN, AI-enabled assurance, provides advanced capabilities to support the vast complexity of application usage across branches, devices and end users by analyzing, identifying and then automatically addressing network optimization and security adjustments. According to Cisco, as many as 50% of network strategists consider AI as a primary focus in future network plans.


In the big picture, the network of the future is virtual, distributed and centrally managed across the entire organization with advanced intelligence, threat detection and routing prioritization. This network supports work from anywhere, on any device and using applications that may be on premise or in the cloud.


Stay tuned for Part 3 to learn how modern networks can go beyond just supporting work to become a strategic advantage.

Offir Schwartz, President & Founder  of Capcon networks

Offir Schwartz

President & Founder 


Offir focuses on building the optimal mix of talented team members, leading technologies and proven processes to support global multi-site enterprises in obtaining and maintaining simple yet effective networking. His experience includes implementing SD-WAN, MPLS, Hybrid Networks and Unified Communications to the some of the worlds' top companies.

Offir Schwartz • Oct 06, 2020
By Offir Schwartz 18 Aug, 2023
Ah, the joys of a rural broadband connection. Where your live stream is more “still-life”, and you’re convinced that buffering circle is just a quirky decoration YouTube decided to adopt. What if I told you, dear regional broadband providers, that there’s a magical solution to many of these woes? One that isn’t whispered about nearly enough: Internet Exchanges (IX). Today, we'll speed-date IXs by diving into how to connect with them, why you should consider it, and your options. How to connect to Internet exchanges Now, before you start searching for an “IX hookup app,” here’s how the real connection goes down: Choose an IX: Not all internet exchanges are created equal. Different IXPs will have various connection policies, costs, and partners. Start with a local or regional IX as they will most likely benefit your immediate user base. Get the Hardware: Connection to an IX usually, but not always involves routers and switches. Don’t skimp here; consider it an investment, or look at solutions that don’t require hardware (check out Connect-IX). Physical Link-Up: Once you have your equipment, you must establish a physical link to the IXP. This might involve leasing a line or installing a fiber link. Configuration: With the physical link established, the next step is to configure your routers to talk with the IXP. Why connect to internet exchanges? Obviously, because it's like going to the best party in town – the one where all the important folks are. You meet peers, form direct relationships, and most importantly, bypass many middlemen that slow down your traffic and increase the cost of data transfers. Think of it as taking a direct flight instead of those pesky three-stop ones, while still paying less. The advantages for a broadband provider IXs can benefit many different types of businesses, but several benefits are especially valuable to regional/rural broadband providers: Speed: Direct peering means faster data transfer rates, and who doesn’t want that? Cost-Effectiveness: By reducing the number of ISPs you go through, you can save on transit costs. Redundancy: If one path fails, there’s always another. Multiple peers can lead to a more resilient network. Local Content: Many local and national content providers/services might be directly connected to the same IX, improving the user experience for your clients. Did somebody say savings? On average, the industry reports a potential cost savings of 20-60% on overall bandwidth expenses for ISPs connected to an IX. Let's paint a hypothetical: say your current bandwidth costs are $10,000 monthly. With a 30% saving (a conservative estimate), you're saving a whopping $3,000 monthly! That's $36,000 annually. Imagine the upgrades and investments you can make with those savings. And don't get me started on the potential for customer satisfaction and growth. Alternatives to Internet Exchanges Now, while IXs sound dreamy, sometimes there’s a need for alternatives, especially if an IXP isn’t within feasible reach. Direct Peering: Establishing direct connections with large content providers or ISPs, but this usually makes sense only for sizable ISPs. Transit Providers: These are the go-between guys, helping you connect to the global internet. They’re a must-have but can be pricier than an IXP connection. VPN Over the Internet: For those feeling extra savvy, you can establish VPN connections over the current internet connection to another location that's better connected. So, Why Consider the Alternatives? While IXs are wonderful, if your main user base frequently accesses content overseas, direct peering with an international content provider might make more sense. Additionally, not all areas will have an IXP within reasonable reach, making transit providers or VPN solutions more feasible. Wrapping things up… Rural doesn’t mean “left behind” in the digital age. With solutions like internet exchanges, the playing field is leveling. Every regional broadband provider has the opportunity to offer stellar service while pocketing some savings. If the dance of data has you dizzy or you’re contemplating which path is right for you, let us help! At Capcon Networks, we've guided many broadband providers in their dance with digital connectivity. Let’s waltz together toward a brighter, buffer-free future. Give us a spin!
By Offir Schwartz 18 Aug, 2023
If the world of broadband were a stock market, then public peering would be that hidden gem of a stock that not only adds shine to your portfolio but also promises substantial returns on investment (ROI). If you’re a regional broadband provider, public peering isn’t just a techy term; it’s a financial strategy. Let’s dive deep into the numbers behind the network. Why should broadband providers peer Into peering? It's not just about data; it's about dollars. The direct routes offered by peering mean you're not only ensuring efficient data flow but also guarding your purse against extra expenditure. Think of peering as a business class ticket for the price of economy - superior experience at a fraction of the cost. Want to jump to first class? Check out Connect-IX! ROI for Rural/Regional Broadband Providers At the end of the day, if it doesn’t make dollars, it doesn’t make sense. How exactly is peering going to create value and save money? 1. Speed and Efficiency = Customer Retention: Happy customers mean steady revenue. Improved speed and latency translate to higher customer satisfaction and lower churn. 2. Controlled Traffic = Predictable Expenses: When you see and control your traffic sources and destinations, you can better predict and manage costs. 3. Scalability Without Skyrocketing Costs: While your customer base and traffic might grow, peering ensures your costs don't grow proportionally, offering higher ROI as you scale. Direct benefits for the users and your bottom-line Happy customers tend to remain customers much longer, so at the end of the day, they are the ones who need to benefit. Key benefits to to your users specifically are: 1. Superior Streaming and Gaming: Happy streamers and gamers are less likely to jump ship, ensuring steady subscription revenue. 2. Quick Downloads = Happy Customers: Fast data transfers elevate user experience, leading to potential premium service upsells. 3. Uptime and Reliability: Fewer outages mean fewer customer service calls and compensation costs. Show Me the Money: Potential Cost Savings I’m sure all Jerry Maguire fans are already screaming, “Show me the money!”; so let’s look at the ROI already. Let's play with numbers. Assume a broadband provider shells out an average of $20/Mbps monthly to a transit provider, incurring a cost of $200,000 for 10Gbps traffic. Peering can significantly reduce this transit volume. Even if peering expenses are factored in, the costs are typically much lower than transit costs. A 30% traffic reduction via peering can lead to a monthly saving of $60,000. Annually, you're looking at an ROI-rich saving of $720,000. Peering Partners: A Broadband Provider’s ROI Boosters The only way peering moves the needle is it you can peer with partners that your users are actively using regularly. The more traffic you can share directly with providers, the more happy users you have and the less transit you need. So you need to peer with partners that get a lot of traffic and have high data usage. I think you may have heard of a few of these examples of active peering partners below: Netflix: By utilizing Netflix Open Connect, you can decrease the cost of traffic and elevate user experience. Google (Including YouTube): With Google Global Cache, serve popular content efficiently and economically. Amazon: Direct connections mean faster services and cost savings. Facebook: Given its traffic volume, direct peering can offer substantial cost benefits. Microsoft (Including Xbox Live): Improve gaming experiences and perhaps upsell premium gaming packages to your user base. Concluding with the ROI Rundown... Public peering isn't just about technology; it’s about treasury. By leaning into peering, regional broadband providers not only enhance service quality but also see a marked decrease in transit costs. If ROI is your song, and you're ready to dance but need some rhythm, we're here to lead. Dive deeper into peering with us and make your financials sing. Onwards to increased ROI!
By Offir Schwartz 25 May, 2023
DE-CIX, the world’s leading Internet Exchange (IX) operator and home to the largest carrier and data center neutral interconnection ecosystem on the planet and Capcon Networks, an industry leader in carrier agnostic connectivity, today announce a strategic partnership with Capcon in the United States. Capcon is uniquely positioned to address the US rural telecommunications market because they are not limited to specific geographies, making them an ideal reseller to work with nationwide. The symbiotic relationship between DE-CIX and Capcon Networks is perfect for the creation of a targeted transport-to-peering product, which is called Connect-IX©. This product allows rural networks to scale while improving their customer experience by enabling rural network operators to exchange traffic directly with each other, content providers, CDN’s and hundreds of networks over a single transport connection.
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