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Large cloud services providers are already major network operators with global reach. The next logical expansion for cloud providers is to turn their own network resources into automated, self-managed VPN services.


  • Enterprises are now running multiple workloads across many regions and several public clouds. The growing complexity has prompted major cloud providers to add high-capacity routers that let enterprises build hub-and-spoke VPNs in their cloud.
  • Ovum anticipates enterprises will unite router-based VPN services they run inside their core with VPN tunnel support that connect enterprise sites at the cloud edge. The components are in place for cloud providers to let enterprises build their own end-to-end networks.
  • Once cloud providers have the ability to offer end-to-end traffic delivery across their network fabric, they can add support for third-party WAN access, remote access VPNs, and hosted virtual network functions. The cloud provider becomes a global network services provider.

Features and Benefits

  • Outlines the current state of enterprise network services at the core and edge from major cloud providers.
  • Extrapolates how cloud providers will put together these enterprise network services components to launch comprehensive, automated network services.
  • Outlines some of the hurdles and shortfalls from cloud providers entering managed network services, where they will need to turn to partners for help.

Key questions answered

  • What do cloud providers do in network services today? How is their role in network services evolving?
  • How do cloud providers' ambitions to deepen in networking role change the role that network providers play?
  • What cloud providers have launched some of the early enterprise networking services, and what do these look like?
  • How will the architecture of cloud providers evolve into network services, and what other features will they add as they mature?

Table of contents


  • Catalyst
  • Ovum view
  • Key messages


  • Recommendations for enterprises
  • Recommendations for service providers

Cloud providers' road to network services in the cloud core

  • The beginnings of embedded network functionality
  • Router hub in the cloud core simplifies enterprise topology

Cloud players' future in network services from the cloud edge

  • Cloud edge gateway evolves into enterprise VPN hub
  • Cloud providers will link together edge and core
  • Private WAN connections and hosted virtual network functions
  • Conclusion


  • Methodology
  • Further reading
  • Author