There’s no doubt that the demand for enterprise connectivity is growing. According to analyst firm Statista, business internet traffic in the U.S. is expected to reach 224 exabytes of data in 2023, a nearly 400% increase from 45.1 exabytes in 2016. To give that perspective, an office of 100 people would have to search the web for 57,077 years to reach a single exabyte of data.
The growth is being driven by next-generation services such as IT automation, Internet of Things (IoT), hyperconverged infrastructure, artificial intelligence (AI), container technology and edge computing.
But we face a challenge: There’s not nearly enough fiber in the ground to meet this growing demand. Significant investments in network infrastructure is needed to deliver on the demands of the enterprise. Who will step up to the plate to meet that connectivity demand? Traditional LECs, cable companies, mobile operators? Or pure-play fiber providers?
Like in most business scenarios, it all comes down to focus and capital. Building out the fiber infrastructure needed to support the demands of 5G and next-generation enterprise services simply isn’t the top priority of most of the groups listed above:
- Traditional LECs recognize that their long-term strategies must include fiber, but they may have missed their moment to maintain business clients and grow with them. Their focus has been dominated by the residential and wireless markets, while dabbling in content.
- MSOs are distracted by an eroding customer base at the hands of OTT players. While they have had some success with the enterprise market, their networks have been cobbled together and are not easily upgraded.
- MNOs are squarely focused on 5G, and much of their capital will go towards this initiative, including purchasing spectrum. Fiber initiatives will likely be undertaken through partners versus their own greenfield builds.
That leaves fiber providers like Everstream with the core competency to build dense, high-capacity, low-latency fiber networks (up to 400 GbE services). It all comes down to focus. By focusing squarely on carefully planned rollouts to enable next-gen services, fiber providers are clearly in the driver’s seat.
Want to learn more about the winners and losers in the connectivity landscape? Check out our CEO’s latest article on RCR Wireless.