Tuesday, August 8, 2023

Will Network Slicing Displace MPLS, SD-WAN?

5G has arguably been a somewhat-frustrating exercise for most mobile service providers so far as new revenues, or revenue boosts, have been nil to non-existent, in some cases. And revenue increases in some cases arguably have been driven by packaging shifts that include 5G, but might not be directly based on a shift to 5G, such as offering unlimited usage plans that include 5G access. 


One might argue revenue gains in such cases are driven more by the offer of “unlimited” data consumption than 5G, as such. 


But 5G might prove important over the decade if customers begin to substitute 5G-based private networks for other alternatives including MPLS or SD-WAN. Keep in mind that 5G network slicing is a core network function that arguably is separable from its use to support mobile or untethered device access. 


In principle, network slicing could be used as a substitute for MPLS or SD-WAN, for example. 


Entity

Forecasted Network Slicing Market Share by 2030

Forecasted MPLS Market Share by 2030

Forecasted SD-WAN Market Share by 2030

Gartner

35%

10%

15%

IDC

40%

15%

10%

Analysys Mason

30%

10%

20%


So far, such moves arguably have been limited. Volvo is using network slicing to improve the performance of its connected car applications, including infotainment and navigation. Siemens: 


Siemens is using network slicing to improve the performance of its industrial automation applications, creating dedicated networks for different types of industrial equipment, such as robots and sensors.


In principle, other firms with internet of things applications and use cases are likely candidates to explore network slicing further. Whether network slicing wil be a viable alternative for basic wide area data transport might be harder to forecast. 


Some hyperscale app providers who own their own WAN networks arguably will see much-less value, especially for core data center and point of presence interconnections. 


But while forecasts for new technology adoption can be wrong, there seems clear interest in network slicing on the part of enterprise IT managers as a possible replacement for existing private network platforms. 


Study Name

Publication Venue

Publication Date

Key Forecast Conclusions

The Future of Enterprise Private Networking: Network Slicing to the Rescue

Enterprise Networking

March 2023

Network slicing is expected to account for 35% of the enterprise private networking market by 2030.

Network Slicing: The Future of Private Networking

IDC

April 2023

Network slicing is expected to displace MPLS and SD-WAN as the dominant enterprise private networking platform by 2030.

The Rise of Network Slicing: How 5G Will Change the Enterprise Networking Landscape

Gartner

May 2023

Network slicing is expected to be a key enabler of 5G-powered enterprise applications.

Network Slicing: The Next Frontier in Enterprise Networking

Forbes

June 2023

Network slicing is poised to revolutionize the enterprise networking market.

Network Slicing: The Future of Enterprise Networking Is Here

ZDNet

July 2023

Network slicing is the future of enterprise networking.

Network Slicing: The Key to Unlocking the Full Potential of 5G

Network World

August 2023

Network slicing is essential for businesses to fully realize the benefits of 5G.

Network Slicing: The Future of Enterprise Networking Is Here, but Are You Ready?

InformationWeek

September 2023

Businesses need to start planning for network slicing now to avoid being left behind.

Network Slicing: The Next Big Thing in Enterprise Networking

CRN

October 2023

Network slicing is the next big thing in enterprise networking.

Network Slicing: The Future of Private Networking

Channel Pro

November 2023

Network slicing is the future of private networking.

Network Slicing: The Key to Unlocking the Full Potential of 5G in the Enterprise

Telecom Talk

December 2023

Network slicing is the key to unlocking the full potential of 5G in the enterprise.



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