Service Providers

Doug.Dunbar

Enabling Service Providers to New Revenue Streams: Enterprises Plan for IPv6 Translation as-a-Service

by Doug.Dunbar on ‎07-25-2012 09:20 AM (46 Views)

With less than 2% of IPv4 addresses remaining, enterprises are currently planning strategies for IPv6 translation. Where exactly are enterprises in their IPv6 translation pursuits? What solutions are they considering for deployment? How do IPv6 translation services fit into IPv6 transition? A recent online study conducted by WaveLength Market Analytics reveals some key insights that should ignite service providers into action.

Nearly a quarter of large and only 5% of medium-sized enterprises have completed their IPv6 transition. Furthermore, two-thirds of medium-sized and 48% of large enterprises have an IPv6 transition plan completed but not yet implemented. Almost 30% of both medium-sized and large enterprises either have or intend to create an IPv6 plan within the next year. It all adds up to the fact that service providers that offer IPv6 translation-as-a-Service can expect to have a significant market available in which to sell. Many enterprises in need of IPv6-as-a-Service and service providers need to move quickly to tap into this burgeoning market.

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IPv6 adoption is a marathon, not a sprint. Jumping directly from an IPv4-only network to IPv6-only is not an economically viable solution. Therefore, most enterprises plan to use a mix of outsourced services and internal technology. Because of this, nearly half of medium-sized enterprises and 75% of large enterprises prefer to buy IPv6 translation-as-a-service in order to delay the costly, internal network infrastructure investment. Purchasing IPv6 translation-as-a-service is not a permanent solution, but it does buy enterprises time to eventually upgrade network infrastructure and data centers to fully-support IPv6.

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Because enterprises are aware of the necessity of IPv6 translation-as-a-service, service providers need to be flexible in how services are packaged. Over eighty percent of enterprises expect IPv6 translation to be bundled with hosting or content delivery. Of that eighty percent, forty-six percent of both large and medium-sized enterprises prefer to buy IPv6 translation services with hosting services while forty percent of large and 42% of medium-sized enterprises would like it bundled with content delivery services.  Contrarily, only fourteen percent of large and 13% of medium-sized enterprises prefer to purchase IPv6 translation services separately from other services.

Study results show that offering IPv6 translation services will be good for a service provider's bottom line. First of all, enterprises don't expect services to be free; 81% of large and 30% of medium-sized enterprises are willing to pay for IPv6 translation services.

Further, IPv6 translation services can attract new customers. 70% of large enterprises are willing to switch to a service provider that bundles IPv6 translation services into hosting, even if that hosting service is more expensive.

In conclusion, there is significant enterprise demand, but it won't last forever so service providers need to deploy IPv6 translation services or risk losing out to competitors.

Check back in next week, as I will discuss enterprises' views on SAN extension services.