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Enterprise traffic is shifting to put cloud and data center at its center. Enterprises can consider fundamental changes to their WAN architectures for potential cost savings and performance gains.


  • Enterprises are migrating to hosted cloud and data center services. That gives them the opportunity to source network services out of the data center, and attached to public clouds, which can decrease their costs and improve application performance.
  • A class of competitors specialize in selling SDN-enabled, value-priced data center interconnection to enterprises. Enterprises can tap cheap, on-demand capacity from new specialists like Megaport and PacketFabric, as well as established network operators like Telstra, PCCW Global, and Colt.
  • Enterprises can go much further, rebuilding their WANs completely around their data centers, which includes splintering the global WAN. Integrators and some professional services specialists offer platforms and services for this data center hubbing.

Features and Benefits

  • Validate the economics of conventional enterprise WAN compared to interconnection services for data centers.
  • Learn how migrating the network core from MPLS to a hybrid Ethernet architecture can save money.
  • Compare the cost savings of transferring data globally inside public cloud partners against other WAN options.
  • Learn how telco cloud connect services and multi-cloud offers fit into the bigger picture of data center interconnection.
  • Learn why not to migrate to a new architecture, and cost-saving alternatives enterprises have with existing WAN partners.

Key questions answered

  • What options do enterprises have to evolve their WAN into one that better reflects traffic shifts toward data center and cloud?
  • What are the common ways that enterprises reduce their costs by leveraging data center and cloud economics for the WAN?
  • Why would enterprises not want to chase the lowest-cost WAN options, leveraging data center and cloud economics?
  • How do telcos' cloud connect and multi-cloud services fit into the bigger picture of enterprises recentering the WAN around data center and cloud?
  • Who are some of the key players that provide dynamic inter-data center interconnection services and data center hubbing consulting/professional services?

Table of contents


  • Catalyst
  • Ovum view
  • Key messages


  • Recommendations for service providers
  • Recommendations for enterprises

Enterprises turn to data center and cloud

  • Changes in enterprise WAN traffic patterns

Price disparity between end locations and data center interconnection

  • Bandwidth costs between major data centers are extremely attractive
  • Data center interconnect specialists vs. established competitors

WANs are repointed to leverage capacity between data centers

  • Maximizing cheap data center bandwidth
  • Sample enterprise pricing: Data center hubbing by the numbers
  • Professional services that help enterprises migrate to data center hubbing

Stealthy data transfer stays inside the global cloud

  • Sample pricing case: In-cloud vs. out-of-cloud traffic transfer by the numbers

Telcos retain a critical role when enterprises evaluate inter-data center interconnection

  • Dealing with an excess of network complexity
  • Cloud connect's networking role expands to value-added services

Enterprise trade-offs and risks from data center bandwidth strategies

  • Cost and performance gains are not guaranteed
  • Rather than force change, enterprises can shift emphasis organically


  • Methodology
  • Further reading
  • Author