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AT&T Brings Managed Internet Service to Business Customers

AT&T Business Solutions, a division of AT&T Inc.T , has decided to introduce an innovative Managed Internet Service on Demand as part of its Network on Demand platform which will enable its large business customers to easily add or change network services in near real-time. The company is aiming to extensively use software defined networking (SDN) and network function virtualization (NFV) techniques to enrich its network-on-demand offerings.

The telecom infrastructure market is witnessing a technical change globally. So far, the main thrust of communications service providers had been on developing advanced hardware that enabled them to attain enhanced speed, scalability and reliability. However, recent developments suggest that operators are gradually shifting focus from a hardware centric growth model to an IT/software-centric business model. The primary reason behind this shift is the significant growth of cloud-based virtual networking.

SDN provides customers increased bandwidth utilization, higher reliability and reduced capital spending. Meanwhile, NFV is designed to consolidate and deliver the networking components needed to support a fully virtualized infrastructure - including virtual servers, storage and even other networks. It utilizes standard IT virtualization technologies.

AT&T's Managed Internet Service will run on its Switched Ethernet Service via Network on Demand platform. Since its inception in 2014, the Switched Ethernet Service via Network on Demand platform is now available in 170 cities in the U.S. and boasts a clientele of more than 200 large enterprise customers.

Initially, the Managed Internet Service will be made available in select cities in the U.S. later this fall and the same will be extended further by this year-end. AT&T aims to control 75% of its network using software (instead of hardware) by 2020. The company's Managed Internet Service will use NFV to virtualise routing in its core network and at customer locations. Enterprise customers won't need to install router at their premises as the routing functions can be accessed from AT&T's core network.

AT&T has partnered with leading network infrastructure developers such as Cisco Systems Inc. CSCO , Juniper Networks Inc. JNPR and Brocade Communications Systems Inc. BRCD to develop SDN and NFV-based solutions for its customer premises equipment and core network architecture.

AT&T currently carries a Zacks Rank #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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