Digital transformation
Trusted Advisor for IT & Telecommunications Sourcing
Fiber optics as the backbone of the digital transformation
Why grid operators will have to invest more than ever in 2023
Companies are focusing on the cloud, edge and automation – but without a stable, high-performance network, digital strategies will remain piecemeal. Speed, range and reliability are becoming key success factors for innovation. Network operators around the world are responding with massive investments in fiber optics and backbone infrastructures.
These developments shape the 2023 grid strategy:
- New global routes: Building additional long-haul and low-latency paths to support data-intensive applications and international connectivity.
- 400G technology & submarine cable: Expansion of multi-terabit networks with lower costs per bit, higher stability and greater bandwidth for cloud and carrier applications.
- Last mile & funding programs: State-supported fiber optic projects close gaps between metropolitan areas and rural regions.
- Efficient packet transport: Improved IP and peering structures enable scalable and cost-efficient transmission paths – essential for 5G, remote work and cloud loads.
The question: How long can your company continue to innovate if the fiber infrastructure doesn’t keep pace with your digital ambitions?
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Are you expanding automation in your company or promoting digital experiences? Or do you want to introduce a hybrid multi-cloud infrastructure or an edge infrastructure?
Network connectivity, performance and reliability are the key elements for success! Without a powerful network that is available at the right time, in the right place and with the right functions, companies cannot implement their innovative plans, serve their customers and be successful.
Network providers are responding to the changing requirements and are taking action to support the digital transformation; as a partner of many large providers with their own fiber optic networks around the world, we have a special perspective on what efforts network operators should make to optimally meet the new requirements. We would like to share this knowledge with you in 4 articles on the topic:
What will network operators be doing in 2023 to meet your customers’ requirements? How do network operators support you in opening up new opportunities by expanding network capacities and reach?
Part 1: Expansion of the fiber optic infrastructure
Let’s face facts for a moment. Although network operators have worked very hard to lay fiber optic cables where they are needed, there is still a lot to do.
Often there are isolated city networks in many regions, but there is a lack of fiber networks between cities. This is a problem because with the advent of 5G and the need to provide edge connectivity to support next-generation services such as autonomous driving, businesses need high-capacity fiber backbones across the country.
Funding programs are being adopted in many countries to close these gaps, particularly for the middle and last mile infrastructure. Any network operator that is focused on the needs of their customers knows that they need to expand their networks to support their customers. Some of the most exciting approaches will be:
New and global routes: Providers will not only establish new long-haul and global routes, but also new routes that support the lowest possible latency while offering new, unique routing options to allow customers to expand their network infrastructure.
400G bandwidth and submarine cable:
Vendors will prioritize 400G client-side wavelengths and 400G IP capabilities for multi-terabit capacities that enable higher transmission rates, lower cost per bit, higher data transfer speeds and significantly greater bandwidth capacity – key features that help enterprises with their digital transformation. In addition, they will extend and expand highly fortified, hybrid, low-loss (ULL) subsea connections that meet the extreme demands of carriers, enterprises and hyperscalers.
Efficient packet transport: Finally, providers will focus their efforts on improving IP and peering capabilities to make packet transport more efficient and scalable. Given the growing demand for internet bandwidth due to 5G, remote working and intensive workloads, this is where providers will invest. The obvious benefits of increased redundancy and improved operational costs lead directly to a better user experience.
In the next article, we will examine how NaaS (Network as a Service) and SDN (Software Defined Networking) make the work of IT staff easier.
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