Growth or decline? Why there’s no middle ground in the new digital era

Making small changes to legacy systems isn’t enough – it’s time to leap into the virtual future

Thanks to rapidly developing trends like the growth of the cloud, online video and the Internet of Things (IoT), the way we use the internet is changing fast.

The Cisco 2015 Global Cloud Index forecast predicts that in 2019, more than 80% of data centre traffic will come from the cloud . And by 2020, there will be 26.3 billion mobile-ready devices and machine-to-machine connections worldwide.

As our world becomes more and more connected, none of these trends show any sign of slowing down. And it’s easy to assume service providers would be delighted by this fact. But it’s just as likely that they’re wondering how to cope with it.

Because while the demand for more sophisticated, faster internet services rises sharply, revenue is growing much more slowly.

No middle ground

This can go either way for service providers.

The rapidly changing landscape is a potential threat. But for those that can get it right, it’s also a huge opportunity.

Providers need to quickly find more efficient ways of giving customers the services they need, or they risk being overtaken by events. There’s no middle ground. And the decisions they make now will determine whether their business grows or declines.

Virtualisation technology driven by orchestration, and taking a holistic approach to security, can help them ensure they make the best of this new internet age. In effect, it moves the functioning of the network (traditionally performed by hardware) onto software.

Decoupling the network’s capabilities from its infrastructure in this way means it can offer much greater speed and flexibility. Which, in turn, will enable new products to come to market much faster.

This gives providers the agility to respond to changing customer demands. And just as it works for an expanding business that wants to quickly create self-service virtual networks, it also works for consumers who want to design bespoke home entertainment packages.

Making virtualisation work

Virtualisation brings many new opportunities. But it needs to be done well to work.

One key consideration is putting the right data centre infrastructure in place.

It’s also essential to use a sophisticated orchestration engine , so that complex network functions can be automated. And adopting an open source approach will mean that a system is flexible enough to adapt to different situations and evolving conditions.

An expert and proven innovator in this field, Cisco has deep knowledge and experience in these critical areas. That’s why leading service providers across the world trust the company to support their virtualisation journeys.

AT&T, for example, are investing in virtualisation to create dynamic, on-demand services, including connecting cars in Europe. They realise that this is the way to ensure that the business thrives in a connected world. And they understand this is a time for taking bold decisions.

Making small changes to old systems isn’t enough. It’s time to take the leap into the virtual future. Many businesses now see that this is an investment that can really pay off.

The real cost would be not doing anything at all.

Find out how you can respond to unpredictable traffic demands and introduce services faster. Read more about Cisco’s virtualisation technology .

Key takeaways

– Trends like the growth of services delivered from the cloud, in areas like business, mobility, video, and the internet of things (IoT) show that the way we use the internet is changing fast.

– The rapidly changing landscape is a potential threat for service providers – but for those that can get it right, it’s also a huge opportunity.

– Virtualisation brings many new opportunities, but it needs to be implemented well to work – and without delay.