Bandwidth on Demand (BoD) Market - The Increased Use of Cloud And Over-The-Top Services

Technology

Bandwidth on demand (BoD) is a service for automatic bandwidth provisioning. Bandwidth on demand addresses customers’ need for fluctuating bandwidth and this results in customers paying only for the data they use. BoD allows different data transmission rates, depending on the customer’s request, application, and data transmission capability of the system. The bandwidth on demand market consists of instant as well as scheduled service models. The scheduled service model allows to reserve the increased bandwidth in advance.

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In the instant model, the network quickly responds to bandwidth modification requests from users. The bandwidth on demand market is highly regulated and it complies with specifications such as the UNI interface specifications as defined by the optical interworking forum (OIF). Bandwidth on demand networks are either shared or dedicated. A shared network is used by multiple users, resulting in greater network utilization and lower cost-per-bit. On the other hand, a dedicated network is dedicated to a single user. Bandwidth on demand services are primarily charged based on the network usage time and bandwidth associated with the connection.

The increased use of cloud and over-the-top services, increased mobility, and transient relationships among an open ecosystem of digital businesses have increased the demand for bandwidth on demand. The bandwidth on demand service helps operators deal with bursty and uncertain data traffic. Hence, it has gained increasing attention from both vendors and carriers. However, issues related to security, policies, billing, and authentication pose a challenge to the market. With the deepening of research and maturity of technology, bandwidth on demand services are expected to offer more flexibility, manageability, and efficiency in the near future.

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Bandwidth on demand is scalable. It enables enterprises to scale the network bandwidth to aid cloud applications in providing strong security over the network when the cloud is being accessed. Expansion of private and industrial sectors is likely to boost the market during the forecast period. However, traditional networks are not complex and dynamic enough to deliver network services under this new technology paradigm. This factor poses a challenge to the bandwidth on demand market.