Webscales Yield Heavy Market Influence: Google, Facebook and Others Driving Network Equipment Roadmaps

Glen Hunt – Principal Analyst, Transport and Routing Infrastructure

Summary Bullets:

• Webscale influence on new product developments is being felt in data center interconnect and massively scalable switching and transport gear.

• Traditional telcos, however, are using these new Webscale-driven platforms to retool their own networks and prepare to deliver more agile services to protect their service base.

Since the first public networks were built, incumbent telcos like Vodafone, Deutsche Telekom and AT&T have ruled network equipment roadmaps and investments – dictating the features, operation and capabilities of new networking products. However, more recently Webscale operators are the influencers. Whereas vendors had been focused on providing the high capacity and broad coverage required by rapid smartphone adoption and a massive increase in video traffic, the focus has steadily turned to support massive, low-latency throughput between the data centers that serve the most popular brands on the Internet, dubbed FAMGA (Facebook, Apple, Microsoft, Google and Amazon). Traditional network operators are scrambling to adapt to this change in service delivery focus, and better prepare their networks for the emerging 5G and Internet of Things (IoT) era.
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