Enterprise Network Pricing Trends for WAN Benchmarks
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1 Enterprise Network Pricing Trends for WAN Benchmarks Greg Bryan TeleGeography
2 ! Starting Hypothetical Network Asia & Pacific = 10 Cities, Europe = 10 Cities, Latin America = 6 Cities, U.S. = 10 Cities!! Ports/circuit sizes range from T-1/E-1 through GigE, average speed per site near 90 Mbps! IP VPN CoS1 network with a mix of leased line and Ethernet access lines!
3 Prices change over the life of a WAN Typical WAN Contract is 3+ years Over this time, wholesale prices are falling Lower wholesale prices lead to lower enterprise prices Price trends will differ across geographies
4 Change in WAN TCO over 3 years Change in Median CoS1 VPN WAN Over Three Years, All Providers!
5 Change in WAN TCO over 3 years Change in Median CoS1 VPN WAN Over Three Years, Global Providers!
6 IPT price trends influence WAN prices Forecasted 10 GigE IPT Prices Averaged Across Hypothetical Network Countries in each Region, !
7 Provider selection affects TCO Provider coverage differs globally, expect to pay premium for global reach Provider sourcing strategy and purchasing power differs for local access
8 Provider selection effect on TCO Median Annual TCO for CoS1 IP VPN WAN from Global and Regional Providers!
9 Access sourcing effect on TCO Effect of Local Access Sourcing on CoS1 IP VPN WAN TCO!
10 Provider and access sourcing, CoS1 Change in TCO of CoS1 IP VPN WAN from Global Providers with Low-Priced Access to Regional Providers with High-Priced Access!
11 Provider and access sourcing, hybrid Change in TCO of Hybrid Mixed-CoS WAN from Global Providers with Low- Priced Access to Regional Providers with High-Priced Access!
12 Product selection affects TCO At higher capacities, layer 2 VPN/EVPN can be much cheaper than IP VPN DIA is consistently much cheaper than IP VPN Large ports can be replaced or augmented with point-to-point circuits Ethernet access can be much cheaper than leased line, particularly at higher capacities
13 Starting Hypothetical Network Mix of Low and High Capacity CoS1 IP VPN Leased Line and Ethernet Access!
14 Hypothetical TCO with EPL Median CoS1 IP VPN WAN TCO with Four Sites Switched to Ethernet Private Line!
15 Hybrid hypothetical network Port Mix of CoS1 VPN & EVPN WAN and T-1/E-1 and Ethernet Access Only!
16 Hypothetical TCO for hybrid WAN Median CoS1 VPN and EVPN WAN TCO with T-1/E-1 and Ethernet Access Lines!
17 Hypothetical TCO for VPN vs. DIA Median CoS1 VPN versus an All DIA WAN!
18 Hypothetical TCO CPE contribution CPE Contribution to CoS1 VPN WAN!
19 Thanks! Please ask questions or contact me: Greg Bryan
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