A10 Networks, an IT company, recently conducted a study on communication service providers (CSPs) worldwide, exploring how they are evolving as they expand services and infrastructure in response to changing customer demand and technology evolution. The research found that there are universal expectations of robust network traffic growth. 66% of respondents believe that network traffic will increase by 50-100% in the coming 2-3 years. The robust growth is prompting a range of activities such as network security investment, expanding infrastructure, diversifying into new markets and services, and more.
A key area of investment for CSPs centers on expanding their networks to reach unserved or underserved communities. Providing secure, reliable connectivity to hard-to-reach or previously uneconomically viable areas is crucial to reducing inequality. It is therefore a positive that 69% of respondents are expanding their networks to unserved/underserved communities. Among these, half are expecting to achieve an uplift of more than 10% on their current subscriber base and 19% are expanding for an uplift of more than 50%.
Additionally, 31% of respondents – the majority of whom were from larger CSPs – said they are planning to build additional data centers and expand to provide additional capacity for other service providers.
One of the significant areas of investment for CSPs centers on expanding their networks to reach unserved or underserved communities. It is therefore a positive that 69% of respondents are expanding their networks to unserved/underserved communities. Additionally, 31% of respondents are planning to build additional data centers and expand to provide additional capacity for other service providers.
A key finding of the research is that CSPs are growing more sophisticated in their approach to network security, though challenges remain with the IPv6 transition. The report shows that as CSPs prepare for growth, elevating their approach to security and compliance is becoming increasingly critical to delivering a high quality service to customers while ensuring resource efficiency. A range of measures is being taken to enhance network security, including DDoS detection and monitoring, ransomware, and malware protection services, automation of security policies, and simplification and integration of disparate point solutions. This more wide-ranging approach to security is an improvement over the previous study conducted in 2021, which showed that security investment was heavily focused on firewall upgrades.
The study also explored the impact of enterprise cloud migration on CSPs. 63% of respondents said that the impact has been positive, with one-quarter seeing direct revenue growth, one in five evolving to offer public cloud and managed data center services, and 19% differentiating their services and increasing their relevance to customers. The study also found that the cloud-native form factor was the top purchasing criterion for new network equipment, while integration with existing networks and systems was also high on the list.
IPv6 Transition Remains an Ongoing Challenge
The IPv6 transition remains an ongoing challenge for CSPs. The study showed that only 30% of respondents expect to successfully achieve this in the next two to three years. Instead, more than one-third are adopting a strategy of carefully managing their IPv4 pools and gradually transitioning to IPv6, and 34% aim to run the two in parallel.
Opportunities Abound Through Increasing Globalization and Demand Growth
The report concludes that CSPs are at a crucial point as they aim to capitalize on demand and seize opportunities to grow and diversify their business. They believe that globalization, offering new services such as DDoS cloud scrubbing, and general demand growth are the three biggest opportunities. To realize their full potential, service providers need to scale and protect their networks so the infrastructure they provide is secure and highly available.
For more insight including analysis of variations between individual countries and regions surveyed, download the full report here
Grant is a Financial Management graduate from UST. His passion for gadgets and tech crossed him over in the industry where he could apply his knowledge as an enthusiast and in-depth analytic skills as a Finance Major. His passion allows him to earn at the same time help Gadget Pilipinas' readers in making smart, value-based decisions and purchases with his reviews and guides.
