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TC2's David Rohde on Telecom. By David Rohde. Posted June 2.
Waves of change are breaking across the entire seascape of enterprise network communications. Catching these waves is the principal strategic challenge of professional enterprise IT and network managers.
Folding these into the unquestionable reality of the day- to- day firefighting responsibilities of your job is probably your biggest personal challenge. I was reminded of all this yesterday when I saw something I really don. Century. Link, an important . Oh and its management portal is . U. S. When Sprint mismanaged itself into irrelevance, how did Century. Link fail to take advantage of the opportunity and let the once nearly- bankrupt Level 3 soar into the principal competitive spot against AT& T and Verizon for real U.
S. The fill- in- the- blanks press release ended with: . Level 3 is relevant because it does NOT have an ILEC and was forced into a situation where it decided to essentially build out on its own everywhere, and to some extent because it doesn. You now see echoes of that in Verizon. In fact, that is one of our core functions . In a day and age when people realize they can often get more bandwidth per bit in their homes and on their mobile devices than in their employer. The nexus of virtualized, hybrid, cloud and managed services requires a keen eye for the balance between prescriptiveness and creativity. There are a select number of suppliers in each field and each global geography that need to be on your bid list for appropriate silos of services.
Finally, proof of use not just in . Make sure not to set your sights too low in your procurement projects for the rest of the decade. But that means rigor is more important than ever before. Enjoy the ride. By David Rohde. Posted June 2. 2, 2. In the couple of days since I explored the risk to the enterprise market of leaving hordes of spectrum in the hands of those who don.
Already a Google gazillionaire, Arora will do fine, although natural human pride caused him to unleash a tweetstorm . See if you can avoid laughing when you read how the Wall Street Journal is reporting this: . Some called for him to keep working until he is 2. We saw this during the recent Verizon strike when the disruption to the organization and the distractions imposed on account managers on the front lines made ongoing business matters and negotiations grind to a halt. On a larger level, this is a exactly why we at TC2 and LB3 make such a big deal of raising account executive and account team selection to the front end of RFP requirements.
Generalizations about whether a particular carrier is . A cool CEO does nobody any good if the account manager on the street can. Every single chair in the Cx. O suite in Kansas City is occupied by a new person.
They in effect or literally report up to a parent company on the other side of the world. That company itself now has its own executive drama . This trait appears to be based on the same over- analogizing that seems to have gotten Soft.
Bank in trouble in the first place, via assuming that the U. S. If you’re a cog in the wheel at Sprint, how are you supposed to have any empowerment at all? No executive sacrificial lambs and messianic complexes among company legends are going to change the radio spectrum, investment capacity, and brand value realities in the U. S. Who will really help provide strong, 3- way competition in every market segment that urgently concerns enterprises, including ultra- broadband wireless for both mobility and, ultimately, primary fixed access circuits? If Soft. Bank thinks this week. That spectrum needs unencumbered financial capacity to actualize its potential.
Something has clearly gotta give. By David Rohde. Posted June 2. One of the great ironies of the current moment in enterprise telecommunications is that for all of the threats to wireline supplier survival and support from their parent companies, they arguably offer more current competition than the supposedly vibrant wireless industry. U. S. For U. S.- based multinationals there. Big 2 plus BT and Orange. And the nexus between managed services and next- generation IP, cloud, virtualized and hybrid networks is renewing the importance of Accenture, Dimension Data and other experienced, rigorous providers to compete in transformational network procurements. Meanwhile, what looks like a free- for- all for U.
S. T- Mobile US is run by a clownish demi- celebrity who is arguably too successful in consumer wireless to pay attention to large enterprises (although to be fair we know of business customers who are attracted to T- Mobile. Meanwhile, Sprint has lost customers, prestige and brand value and only has debt maturities, an executive merry- go- round and multiple failed advertising campaigns to show for it. To recover its status, Sprint now seems to want credit for some crazy financial engineering schemes that keep the doors open while analysts reveal that these are just ways for parent company Soft.
Bank to avoid putting in more of its own money. Yet the one thing that Sprint does have is an enormous boatload of spectrum, especially in the highest bands of usable spectrum for voice and data communications.
Which could benefit them . The question is whether they can really do that, or whether somebody else could do it better and faster. The Wall Street Journal recently ran a feature article about Sprint. Surprisingly, people are not totally thrilled about the new low- power antennas popping up around them and . Who knew? Certainly Sprint Chief Technical Officer John Saw seems reasonable about this. The Journal says he wants to make sure municipalities are comfortable with Sprint.
Saw is quoted telling the Journal. Verizon is gunning for 5.
G for fixed- location use in access as well as mobility, and AT& T has in some interesting ways been riding Verizon. But with $3. 3 billion in debt . T- Mobile will be able to bid for a portion of this spectrum in a set- aside where other bidders can play but Verizon and AT& T can.
We have the basic problem here of the . Financial weakness only forces the carrier into more unintended consequences like the zoning delays it. It may be time for Soft. Bank to admit defeat in the U.
S. If somebody else can do better and move faster with these spectrum assets, it. Ultimately hybrid WANs can provide real cost avoidance or at least cost reduction on transport.
For example, a 1. G broadband offload circuit for cloud- based or other applications can overcome the need for the Qo. S that might be required on a lower bandwidth circuit.
And you may already know that 1. M and faster LTE access is increasingly available, with carriers gunning for far more with 5. G. It. But given that most companies are heavily invested in Cisco, let.
Keep in mind that the Cisco APIC is not just about edge routers and the WAN, meaning that the two solutions are not completely parallel. Viptela is a point solution covering a portion of the end- to- end user experience (edge router and WAN). But most large companies have a big investment in Cisco in the closet, data center as well as the edge routers, so the entire network architecture needs to be considered. Cisco. But even there, you should do an RFP and leverage what may be your incentive to kick out Cisco precisely to obtain better pricing from Cisco and free professional support . Velo. Cloud SD- WAN includes a distributed network of Velo. Cloud Gateways, a cloud- based Velo.
Cloud Orchestrator and a branch platform, Velo. Cloud Edge. In the meantime, we. Think of it in the latter, more positive sense and it. But this broader usage of .
So presto- change- o, they were . The non- telecom tech giants are also in on the game, becoming part- investors in new undersea routes as well as some notable startups in metro networks.
You can imagine the reasons for all this . Consumer cord- cutting in a data and entertainment or multimedia sense instead of simply the old voice telephony sense of cord- cutting is forcing a demand for wholesale builds in ways that mean far more to enterprises than the insipid . Pretty much any day of the week now, you can see the latest news about this stuff at the invaluable and also entertaining industry site Telecom Ramblings. Sometimes even they at Ramblings are surprised at the geographies where this is happening. Just this week I myself was happy to fill in from my own personal knowledge why a market that seemed out of the way to them was logical for this. We already know that Verizon is beginning to feel the pinch from the possible and relative new disadvantage of its obviously coveted Boston- to- Washington ILEC/RBOC position compared to the more naturally balanced national- metro model of Level 3.
As was pointed out to me earlier this year by an independent analyst (and I appreciated it), it. That is to say, if a T- Mobile contracts with Zayo for a backhaul buildout of, say, $2. And of course, the wireline RFP benefits to you of this ground- level buildout is not in direct sight. T- Mobile simply doesn. But the groundwork is being laid for more industry players to reach more places on- net because the wholesale margins are back . If it seems that 5.
G fixed access has gone from a far- out concept to a top- of- the- agenda project in a relative nanosecond, it. The other driving factor is the rise of Level 3 as well as potential imitators of Level 3. A carrier like Level 3 may have no ILEC, but it. Verizon should thank its lucky stars that the cablecos still treat their enterprise offers as glorified consumer broadband products with extremely subpar terms and conditions. But remember the underlying tension here, because it easily demonstrates that he meant .
The ultimate fear remains that Verizon may theoretically try to offload the . In the meantime, the recently settled strike highlights that Verizon may actually be more skittish about its ILEC business than anything else.