Nowhere is the competitive threat of new entrants as imminent as with Enterprise Services.  Strongholds like MPLS are under pressure.  It’s clear the economics and delivery model of enterprise communications services are changing.

The price/performance equation for Enterprise Services continues to tighten.  CSPs must find ways to deliver the best service quality at increasingly competitive price points.

But CSPs are fighting back.  The Edge Cloud in the Central Office or data center capitalizes on proximity to enterprise clients while benefiting from improved economics of COTS infrastructure.  Innovative on-demand services are taking hold.

The customer premise is also being re-engineered.  The vendor-proprietary CPE is being replaced with simple commodity universal devices supported by Virtual CPE (vCPE) functions running as software in the Edge Cloud. 

However, this transition of VNFs introduces new challenges in ensuring SLAs.  The legacy ‘physical function’ approach was well understood, while new cloud-based services are much more difficult to monitor.  Enterprise customers can be very unforgiving.