The rise of cloud computing has been a mixed bag for the bottom line of traditional network hardware manufacturers. Yes, there is business to be had by supplying the burgeoning cloud service providers with new hardware; however, as companies move their applications into the cloud, the elaborate WAN networks of yesteryear are slowly being phased out. The result is less a decrease in sales of routers and switches. The very growth engine that gave rise to Cisco, Juniper , Adtran and others is now sputtering.
From a business perspective, we are pleasantly surprised to see an uptick in demand in the latter half of 2017 for bandwidth shapers. We expect to continue on into 2018 and beyond.
Why are bandwidth shapers seeing an uptick in interest?
Prior to the rise of cloud computing , companies had fat LAN networks pipes, and relatively small connections to the Internet. As services move to the Cloud, the data that formerly traversed the local LAN is now being funneled out the building through the one pipe leading to the Internet. For the most part, companies realize this extra burden on their Internet connection and take action by buying more bandwidth. Buying bandwidth makes sense in markets where bandwidth is cheap. Companies are also realizing they cannot afford to have gridlock into their cloud, and at any time an unanticipated spike in bandwidth demand could overwhelm their cloud connection. The ramifications of clogged cloud connection would be catastrophic to business, hence we are getting preemptive inquires about insuring their cloud service will prioritize critical services with a smart bandwidth shaper. We are also getting inquiries from businesses that have fallen behind and are unable to upgrade their Internet pipe fast enough to keep up with Cloud demand.