The Cloud Propels Growth in Bandwidth on Demand, Heavy Reading Finds

The cloud has renewed interest in dynamic bandwidth, pushing growth in the market, says Heavy Reading Insider

Oct 21, 2013

NEW YORK, Oct. 21, 2013 /PRNewswire/ -- Dynamic bandwidth – or bandwidth on demand (BOD) and usage-based billing (UBB) – is on a growing trajectory, accelerated largely by the cloud, according to the latest report from Heavy Reading Insider (, a subscription research service from Heavy Reading (

Cloud Growth Boosts Demand for Dynamic Bandwidth examines dynamic bandwidth, comparing BOD and UBB, discussing the current trends and applications, and how the cloud is driving it. The report also provides "status reports" for 10 leading companies in the market.

For a list of companies covered in this report,

"Dynamic bandwidth has been a market issue for years," says Steve Koppman, research analyst with Heavy Reading Insider and author of the report. "But the emergence of the 'cloud' is drawing intense new focus to dynamic bandwidth, promising major new growth, particularly for BOD options, and provoking the introduction of a range of related service offerings."

As customers rely increasingly on remote deployments of computer memory, the way networks are used shifts, Koppman says. "Although there will be increasing use of dynamic/flexible bandwidth in the next few years, particularly in relation to the cloud and in the growth of BOD, dynamic bandwidth will not account for a majority of market bandwidth within the next three to five years," he continues. "Carriers will need to invest in dynamic bandwidth to keep the loyalty of customers they already have and attract more in an environment in which it is increasingly viewed as a virtual requirement, especially in relation to the cloud."

Key findings of Cloud Growth Boosts Demand for Dynamic Bandwidth include the following:

  • Bandwidth on demand, while much less widely used than usage-based billing, will grow faster over the next three to five years.
  • "Flexing" by location, as well as by bandwidth level, will increasingly characterize dynamic bandwidth, largely driven by the cloud.
  • The cloud will be the primary driver of dynamic bandwidth, partly by simply accustoming buyers to paying "by the drink."
  • Innovative services that incorporate bandwidth flexibility are currently being introduced and/or tested, largely by Tier 2 carriers.
  • ILECs are slow-rolling bandwidth on demand because of a lack of confidence in its economics.
  • Carriers will invest increasingly in dynamic bandwidth, though economic payback is uncertain.
  • Dynamic bandwidth will increasingly be viewed as a virtual requirement.

Cloud Growth Boosts Demand for Dynamic Bandwidth is available as part of an annual single-user subscription (12 issues) to Heavy Reading Insider, priced at $1,995. Individual reports are available for $900 (single-user license).

To subscribe, or for more information, please visit: For more information about other Heavy Reading Insider research services, please visit:

To request a free executive summary of the report, or for details on multi-user licensing options, please contact:

David Williams
Global Director of Sales, Research
Heavy Reading

Press/analyst contact:
Jennifer Baker
Marketing Director, Light Reading Communications Network

About Heavy Reading (
Heavy Reading is an independent research organization offering deep analysis of emerging telecom trends to network operators, technology suppliers, and investors. Its product portfolio includes in-depth reports that address critical next-generation technology and service issues, market trackers that focus on the telecom industry's most critical technology sectors, exclusive worldwide surveys of network operator decision-makers that identify future purchasing and deployment plans, and a rich array of custom and consulting services that give clients the market intelligence needed to compete successfully in the global telecom industry. As a division of UBM Tech (, Heavy Reading contributes to the only integrated business information platform serving the global communications industry.

SOURCE Heavy Reading