Why Carrier-Neutral Data centers are key to reduce WAN costs?

With the exponential expansion and investments going to the Tele communication industry, the bandwidth prices keep falling and the customers are getting the benefited largely than ever before.

Telecom Industry has been going through major changes, setbacks and the key cloud providers like Google, Amazon, Microsoft, and Facebook have been influential in this process by building their own massive global fiber capacity while scaling back their purchases from telecom carriers. Further, these cloud companies have driven the global fiber supply up and demand down. Another contributor for cost reduction is the technology advances, like 100 Gbps bit rates, have also contributed to the persistent erosion of costs.

Moreover, the introduction of Software-Defined Networking (SD-WAN) makes it simpler than ever to prioritize traffic between costly private networks and cheaper Internet bandwidth. Hence, today, many are benefiting from the bandwidth prices that have never been lower.

However, there are many challenges for the buyers who seek out for lower costs for the corporate WAN. Few could be listed as below.

• Inflexible and long-term Telecom contracts • The competition is mostly limited to a few of major carriers • Limited choices for local access and Internet at corporate locations • The tedious procedure in changing the providers, since the incumbents have all the leverage

The largest telcos often get trapped by their high prices and thus defending their revenue base makes them reluctant adopters of SD-WAN and Internet-based solutions. Hence, it is important to see as how the enterprises can bring down their spending on the corporate WAN, while improving performance.

The Competition will bring a lot of benefits. The most competitive marketplaces for telecom services in the world are Carrier-Neutral Data Centers (CNDCs). With long-haul networks; local access; Internet providers, storage, compute, SaaS, etc. CDNCs extend a wide array of networking options, and the carriers realize that competitors are just a cross-connect away.

The regional, national, and global companies are getting benefited with tremendous savings. In one report by Equinix, it has been found out that, an average of 40% is saved on bandwidth costs, and 60%-70% cloud connectivity and network traffic cost reduction. What is important is to leverage CNDCs as regional network hubs, rather than the traditional model of hubbing connectivity out of internal corporate data centers.It is obvious that CNDCs offer much more than racks and power as these sites can offer performance benefits as well. Internet connectivity is often superior, and many CNDCs offer private cloud gateways that can help improving latency and security while offering cost benefits.