Evaluate & Select Alternative Network Solutions

A guide to alternative connectivity options.

Analyst Perspective

Think speed, availability, and reliability before cost.

In today's digital era, the search for robust and scalable network solutions has become paramount. Beyond traditional multiprotocol label switching (MPLS) and fiber optic connections, businesses are increasingly considering cellular networks, especially given the advancements in 5G, and innovative overlay solutions for enhanced connectivity and flexibility. Low Earth orbit (LEO) satellites have emerged as a viable contender, promising global coverage with reduced latency compared to their higher-orbit counterparts.

While criteria like speed, reliability, and cost remain pivotal, the added dimension of availability, especially with 5G's widespread reach and LEO's promise for remote areas, has become crucial. Systems such as Starlink, OneWeb, and 5G networks are not only reshaping the standards for connection speeds but are also bridging global digital gaps with their expansive coverage.

As the world grows more interconnected, the blend of these alternative and traditional solutions will dictate the future of global communications.

John Donovan Principal Research Director, I&O Practice Info-Tech Research Group

Insight Summary

One size does not fit all in network solutions

When selecting alternative network solutions, businesses must embrace the principle that one size does not fit all. While there's a natural inclination to adopt widely recognized solutions, it's essential to match the unique operational demands of each organization with a tailored network approach. This ensures both optimal performance and cost-effectiveness in the long term.

Transition management is as crucial as the solution itself

The journey toward implementing a new network solution isn't solely about the technology's prowess – it's equally about the transition. A smooth migration, characterized by phased rollouts, staff training, and contingencies for unexpected challenges, can spell the difference between operational disruptions and a seamless shift to enhanced capabilities.

Future proofing over immediate savings

In the quest for cost efficiency, businesses might gravitate toward immediate, cheaper solutions. However, the true value lies in future proofing. Investing in scalable and adaptable network solutions, even if they demand a higher initial outlay, positions businesses to better accommodate growth and swiftly integrate with emerging technological advancements.

Executive Summary

Your Challenge

Organizations often face three key challenges when selecting alternative networks:

• Integration into existing systems adding cost and complexity
• Compliance with security standards introducing vulnerabilities
• Reliance on external vendors and managing new systems creating cost and resource constraints

Additional challenges depend on which alternative networks are available.

Common Obstacle

Obstacles that organizations face when selecting alternative network solutions:

• The technical limitations of solutions that do not meet performance requirements
• Vendor lock-in, restricting flexibility to pivot to another solution if change is needed
• Operational complexity – adding new layers of integration to existing systems

Info-Tech’s Approach

Before full implementation, conduct a comprehensive evaluation of technical requirements.

• Run pilot tests with the new solution to identify potential issues
• Adopt a multi-vendor and open standard approach to allow flexibility and allow organizations to integrate components from different vendors

Follow Info-Tech’s approach by determining your physical limitations, then your technical limitations, considering the trade-off between build or buy, and evaluating based on metrics.

Info-Tech Insight

The process of selecting alternative network solutions involves considering factors such as scalability, performance, cost-effectiveness, and technology trends. By carefully assessing and selecting alternative network solutions, organizations can enhance their connectivity and optimize network infrastructure to achieve business goals.

Executive Brief

Info-Tech’s Approach

In today's fast-paced digital landscape, organizations are struggling with the complex challenges of ensuring robust, fast, and reliable connectivity, especially for remote sites. Traditional network solutions often fall short in meeting the demands of modern businesses, paving the way for alternative network solutions. This presentation delves into a spectrum of these alternatives — from the expanse of LEO satellites to the promises of 5G, the nuances of licensed and unlicensed frequencies, the adaptability of non-native software-defined networks, and the efficiency of overlay networks. Guided by a decision model grounded in cost, availability, bandwidth, and latency, we will navigate the pros and cons of each solution, offering insights and real-world examples. Our aim is to empower businesses with the knowledge to make informed decisions, ensuring that their network infrastructure is not just adequate but optimized for their unique needs.

Alternative network solutions

The growth of 5G

The introduction of 5G networks has revolutionized the cellular connectivity landscape. Not only does it promise speeds that rival or even surpass many wired connections, but its low-latency characteristics also open doors for real-time applications and Internet of Things (IoT) integration. Its potential to connect remote areas, when infrastructure for traditional broadband is lacking, positions 5G as a key player in bridging digital gaps.

LEO satellites and global reach

LEO satellite systems, like Starlink and OneWeb, are rapidly becoming game changers in the global connectivity scenario. Their ability to provide high-speed reliable internet to the most remote corners of the world addresses a long-term challenge faced by geostationary satellite systems and terrestrial networks. As these LEO networks grow, they may soon become the primary internet source for many underserved regions.

Network overlays and flexibility

The utilization of network overlays, which allow multiple virtual networks to coexist on a shared physical infrastructure, provides businesses with unprecedented flexibility. This enables seamless integration of diverse networking solutions, from traditional MPLS to 5G and satellite connections. As hybrid work environments become the norm, the adaptability offered by overlay solutions will be crucial in ensuring consistent and reliable connectivity across varied locations.

Satellite networks

Resources within network boundaries
Moat and castle security perimeter

Satellite-based internet connectivity

Abstract

Satellite-based internet has been around for over 25 years with geostationary satellites in high Earth orbit (HEO). But there are five main types of satellites, and they are classified by their orbital altitude. This affects their coverage and the speed with which they travel around the Earth. These are:

• Low Earth orbit (LEO)
• Medium Earth orbit (MEO)
• Geostationary orbit (GEO)
• Sun synchronous orbit (SSO)
• Geostationary transfer orbit (GTO)

In this advisory deck we will be concentrating on LEO satellites because they have the best capabilities to deliver high bandwidth, low latency performance. This makes LEOs well suited for industrial and commercial applications. They deliver broadband speed, but with a much wider reach globally.

LEO satellites

LEOs move at an altitude of 160 to 1,500 kilometers above Earth’s surface. They have a short orbital period, between 90 and 120 minutes, meaning they can travel around the planet 16 times per day.

Info-Tech Insight

These characteristics make LEOs particularly suitable for remote sensing, high-resolution imaging, scientific research, and industrial internet usage. With its ability to acquire and transmit data rapidly, this technology is key for remote applications.

LEO market share

Starlink is leading the market with now over 5,000 in orbit, with plans to reach 12,000 over the next five years.

LEO satellites compared to MEO and HEO Satellites

About 85% of operational satellites currently in orbit are LEO (CBO, 2023).

Current market trends for LEO satellites

The LEO satellite market is projected to reach US$19.8 billion by 2028 at a growth rate of 15.5% per year. Technology advancements in small satellite systems are driving the market. The market growth in North America is attributed to the presence of leading manufacturers of satellite systems. (Source: Markets and Markets, 2022)

LEO satellites are being increasingly used in commercial applications like data communication, remote sensing, and research.

Info-Tech Insight

The rise of IoT and machine learning is contributing to the growth of LEO satellites.

LEO Satellite Internet

Technical challenges for LEO

1. Available orbits

   There is a finite number of optimal orbits for LEO satellite constellations. Due to the limitations of allocations, early entrants gain a technical and strategic advantage. This will strain the number of providers worldwide and may impact coverage. The World Radio Congress agreed to deployment rules such as 10% of their constellation to be deployed in the first two years, 50% within five years and 100% deployed within seven years or the provider will lose that license and allocation.

2. Compatibility

   Different providers operate in a proprietary way which locks the customer into the provider’s ecosystem. Organizations must select the provider by hardware, software, and services and build their solutions around these restrictions. This will prevent companies from moving between providers without a significant cost and disruption to services. This issue will reduce the competitive pricing pressures from existing customers and reduce the subscriber churn rate. This would also impact mergers and acquisitions.

3. Radio spectrum challenges

   There is only a finite spectrum of suitable radio frequencies available for providers from lower frequency bands 1 to 2Hz and 2 to 4Hz to higher frequencies ranging from 12 to 75Hz. This makes getting access to these ranges highly competitive. Ground-based transmissions are also subject to local regulations, meaning some spectrum frequencies are not available in certain locations. Some governments regulate frequencies, but satellite-to-satellite laser communications can help minimize these effects.
(Source: Fujitsu, 2022)

“The biggest challenge for LEO constellations is the need to launch and maintain large number of satellites in order to provide global coverage.” – Nick Cowell, Principal Consultant within Fujitsu’s Technology Strategy Unit

Industry use cases for LEO satellites

• Maritime communication

  Navigation and communication are extremely important security features for long haul ocean voyages. Satellite internet impacts various marine industries including logistics, transportation, and the ability to stay connected while far from land. The coast guard leverages connectivity to secure coastal borders and distressed vessels.

• Agriculture

  Because agriculture is predominately rural, traditional internet service providers (ISPs) have no incentive to expand to remote regions. Satellite internet brings connectivity to farmers who have utilized it for new technologies such as sensors to monitor soil quality, crop development, and moisture levels.

• Healthcare

  The healthcare industry can utilize satellite internet to connect to remote towns, via telemedicine, improving the health of residents who may live hours away from hospitals. The ability to use remote monitoring devices has now become a reality. Devices such as heart monitors and blood glucose meters can help doctors gain a better understanding of remote patients’ health.

• Environmental monitoring

  With the global reach of satellite internet access, government agencies and scientists can remotely monitor and survey areas that may be physically difficult to reach. Remote sensors can help researchers monitor forest fires, landslides, avalanches, wildlife population, storms, and hurricanes. Scientists can utilize satellite communications to send data back to universities and agencies in real time.

• Construction and mining

  The ability to utilize satellite internet has been a game changer in these industries. The ability to communicate between remote mines and construction sites that do not have internet is now possible. IoT devices to monitor sites with quality data and real time analysis, along with the ability to quickly set up a rugged satellite solution in about an hour, enables workers and researchers to communicate from remote sites to a head office.

Scale

4,500+ deployments
Starlink has already deployed 5,000 LEO satellites and intends to deploy over 12,000 in the next three years.

42,000 new satellites
SpaceX is building a mega constellation.

LEO Satellite (Starlink) Case Study

Solving remote and rural connectivity issues

INDUSTRY: Energy Sector renewables | SOURCE: The Clarus Networks Group, 2023

Challenge

Ventient Energy is a renewable energy producer with wind farms in isolated areas lacking fiber optic exchanges. Ventient typically used 4G and asymmetric digital subscriber lines (ADSL) to connect with energy substations. This was not possible in many cases with wind farms located in remote and rural environments with poor coverage. They required connectivity for:

• Project-wide employee comms.
• Real-time data transmission.
• IoT integration and more.

Solution

The network engineers did site surveys for all installation sites to determine the best antenna locations for Starlink.

They were able to integrate Starlink with Ventient’s existing network equipment at each site, providing a reliable connection. This was not possible without satellites.

The solution included greater than 99% availability, low latency (20 to 40ms), throughput up to 350Mbps and download speed of 40Mbps, and no data caps.

Results

With higher-gain antennae, more throughput allocation, and better extreme weather performance, the solution from Starlink is now able to provide 24/7 bandwidth availability.

• High speed, low latency
• Better performance than 4G ADSL
• Better communications
• Improved productivity
• Real-time data analytics for proactive maintenance

Software-defined networks

Software-based controllers and APIs

Abstract

The key difference between traditional broadband networking is the infrastructure. A software-defined network (SDN) is software based, while traditional networking is hardware based. The software-defined network has a control plane that is software based so it is much more flexible than traditional. It allows admins to control the network, change config settings, provision resources, and increase network capacity from a centralized user interface. There are also security differences between SDNs and traditional broadband thanks to the greater ability to define secure pathways.

Typical SDN architecture

• Applications communicate resource requests or information about the network as a whole.
• Controllers use this information to decide how to route a data packet.
• Network devices receive information from the controller about where to move the data.

Benefits

Many of today's services and apps, especially when they involve the cloud, could not function without SDNs. An SDN allows data to move easily between distributed locations, which is critical for cloud applications.

Info-Tech Insight

With increased cloud services provided to end users, this network is now more commonly used in data centers or operational technology (OT) networks.

Software-defined wide area networks

A software-defined wide area network (SD-WAN) is a software-based network technology that delivers virtualized resources to WAN connections over broadband internet and private links.

• Why choose SD-WAN?

  SD-WAN is cloud delivered and software defined, which allows for network agility, is easy to deploy, and enables central management and control. IT can help a company reduce the amount of WAN traffic on leased lines shifting some of its broadband connection and cloud-based applications.

• Access to cloud services

  With SD-WAN, companies can quickly add access to cloud services, set up a new remote site office, and dynamically route all types of network traffic for optimized applications and data delivery.

• Deployment options

  SD-WAN allows for various deployment options including complete cloud or software-based , hardware-based, or hybrid deployments.

• Centrally located

  A centrally controlled orchestrator monitors all the network activity to deliver real-time analytics and reporting as well as remotely remediate any issues.

Numerous businesses utilize WANs to establish connections between their branch offices and a diverse range of essential business applications, including video conferencing, enterprise resource planning (ERP), customer relationship management (CRM) solutions, and more. SD-WAN technology empowers companies to construct a hybrid WAN infrastructure that combines various connections such as MPLS, mobile, and broadband into a unified, virtualized pathway for application delivery. This dynamic approach allows the network to adapt to changing conditions, eliminating the need for traditional WAN upgrades to accommodate the increasing demands of cloud services.

SD-WAN

SD-WAN adoption is moving businesses away from traditional networks through abstraction

Internet apps are a driving force

TeleGeography's research projects that the 5,000 largest global enterprises by revenue will have SD-WAN installed at 61% of global WAN sites by the end of 2023, growing to 81% by 2026. (Source: Keller, 2023)

Cost-effectiveness, improved performance, enhanced agility and security are all reasons to migrate to SD-WAN technology. It allows organizations to leverage multiple network connections, including less expensive broadband internet, alongside traditional MPLS. This combination allows organizations to use less costly or alternative network connections for noncritical traffic.

SD-WAN Case Study

A solution that supports better communications across distributed global organizations

INDUSTRY: Technology Multinational Conglomerate | SOURCE: Orange Business, 2018

Challenge

Siemens is a global technology conglomerate with operations in 94 countries. Siemens faced inconsistent network performance and expensive MPLS costs and a lack of agility when incorporating new sites into their network.

They needed a reliable and flexible communications network that is a critical business enabler and can evolve with their growing business.

Solution

Siemens identified moving to an internet-driven SDN environment as a core ambition to resolve their network issues. They needed to migrate core apps to cloud-based web apps and reduce costs by integrating their internet connectivity. They selected a solution by Orange Business to deliver worldwide SD-WAN coverage with high security standards and service quality for 1,500 sites across 94 countries, and integration management across all business processes, using an underlying SDN-Universal Customer Premises Equipment (UCPE) infrastructure based on Cisco/Viptela.

Results

Siemens utilized SDN technologies to enable their capacity to compete globally.

SDN services delivered:

• Enhanced reliable secure communications and collaboration capabilities to support highly distributed global organization.
• Increased agility and scalability of IT to support the business.
• Built a platform for the future with cost savings on internet-based connectivity.

4G/LTE

Resources within network boundaries
Moat and castle security perimeter

Abstract

4G/LTE technology has found extensive industrial and enterprise applications as a reliable alternative network connection. Its widespread coverage, high-speed data transmission, and scalability make it a valuable option. Industries use 4G/LTE for real-time monitoring, IoT deployment, and backup connectivity. It’s cost-effective, adaptable, and suitable for remote and temporary projects. With the potential for a future 5G transition, 4G/LTE remains a versatile solution for businesses working to enhance connectivity and improve efficiencies and business continuity.

LTE architecture

Data and voice can be exchanged between two participants using LTE. Thanks to packet switching, data and voice can be sent using the same network.

The three key components are:

1. User equipment
2. The evolved UMTS terrestrial radio access network (E-UTRAN)
3. The evolved packet core

Speed is the difference

LTE and 4G were introduced around the same time, but there are several differences between the two. 4G is faster, making it more suited for IoT implementations.

Info-Tech Insight

The best choice for you depends on the required application and speed. If 10ms vs. 5ms makes a significant difference, then 4G is better.

4G/LTE

4G/LTE coverage worldwide is 90%, but it is slowly being taken over by 5G, which in 2023 reached 40% coverage (ITU, 2023).

4G/LTE maintains a large market share

In 2023, global adoption of 4G was at 60%. With rising 5G markets such as China, South Korea, and the US, 5G is expected to overtake 4G by 2029 (GSMA, 2023).

While 4G/LTE is slower than 5G, it still has adequate speed and availability for alternative network connections. It also has extensive coverage in many regions. There have been over 10,000 commercially launched LTE networks globally. It offers high speed ranging from 5Mbps to 100Mbps. It is suitable for applications like streaming, video, and data transfer.

What does 4G/LTE bring to the table?

Private 4G/LTE networks are networks that use licensed, shared, or unlicensed wireless spectrums and LTE or 4G cellular networking base stations, small cells, and other radio access network (RAN) infrastructure to transmit voice and data to edge devices, including smartphones, embedded modules, routers, and gateways. Some use cases are utilities which connect their IoT applications to smart meters. Mining, oil, and gas organizations utilize private LTE networks for industrial IoT (IIoT) applications that connect to drilling machines, rugged handheld and other equipment, even when that equipment is underground.

4G/LTE Benefits

• Higher speed

  4G is quicker than 3G so there is less buffering between audio quality and streaming services with reduced lag. 4G download speed can reach as high as 100Mbps, enabling faster access to content and online applications.

• Reduced Latency

  The latency of a system can affect its ability to perform in real time. For many IP-based applications, system latency is more important than actual peak data rates. In the LTE system architecture design, IP packets are sent immediately. There are no switched components, so that makes the network architecture simpler and radio management faster, with higher data rates and with seamless and lossless handover.

• Higher capacity

  Multiple input multiple output (MIMO) antenna transmission increases system capacity through special multiplexing and beam forming. Orthogonal frequency division multiplexing (OFDM), which divides the available radio spectrum into multiple subcarriers, allows for efficient and robust data transmission.

M2M LTE

Remote solutions that can work

INDUSTRY: Construction - Medical | SOURCE: Clarus Site Solutions, 2023

Challenge

Balfour Beatty, a leading infrastructure group in the construction industry, were building a medical center for the University of Edinburgh.

They required a solution that had the bandwidth and speed to support video conferencing, building information modeling software, and CAD software which requires large upload and download bandwidth.

Solution

The construction company brought in an engineering firm to do a survey and spectrum analysis to identify mobile networks that have the fastest and most stable mobile frequencies.

They installed an industrial grade machine-to-machine (M2M) LTE device which maximizes data speed and connectivity in any location.

This works well with remote locations, where other devices cannot deliver the required performance in speed and connectivity.

Results

The solution was able to achieve 120Mbps download speed and 50Mbps upload speed.

Their internet speed outperformed fiber optic speed in many installs.

They gained fully networked site offices, allowing employees to share CAD drawings and design plans, as well as the ability to collaborate across the company and partners from remote locations.

They were also able to install CCTV and sensors with IP connectivity.

5G networks

5G implementations are slowing down due to Telcos deploying 5G over existing 4G/LTE

Abstract

While 5G is the undeniable future of telecommunications, its promises of massive machine-type communication and lower latency come mainly from standalone 5G, whereas most telecommunication companies deploying 5G networks have built on existing 4G/LTE infrastructure, known as non-standalone (NSA) 5G, for easier and faster rollouts. The rate of 5G launches has therefore decreased since 2020, likely due to the expensive set-up costs for standalone 5G and the difficult economic environment in 2022 to 2023. Yet the 5G rollout continues, and all but one of the 5G launches announced for 2023 are standalone.

5G network architecture

• Complex networks incorporating multiple services standards and site types must be able to provide diversified services of different KPIs.
• Coordination of multi-connectivity technology to coexist with LTE and Wi-Fi must be based on traffic and mobility requirements.
• On-demand deployment of service anchors based on access sites and three-layer distributed clouds, depending on the service requirements, fiber optic availability, and network resources allocated.

Service-driven

The service-driven 5G architecture aims to flexibly and efficiently meet diversified mobile service requirements with SDN and network functions virtualization (NFV) supporting the underlying infrastructure.

Info-Tech Insight

5G will provide new and innovative solutions in the world of Exponential IT, from IoT to Industry 4.0 to intelligent manufacturing applications.