CSPs anticipate to play a broader position in AI connectivity, particularly in offering high-bandwidth wavelength companies for enterprise clients
In sum – what to know:
Lengthy-haul networks hit hardest – Simply over half (52%) anticipate AI will account for greater than 30% of long-haul site visitors in that timeframe, and practically one-third (29%) imagine AI will surpass the 50% mark.
Enterprise as a key driver – Three-quarters (74%) anticipate enterprises — somewhat than hyperscalers or cloud suppliers — to generate the most important share of latest demand over the subsequent three years.
Most CSPs aren’t prepared – Community readiness is a piece in progress. Solely 16% of respondents say their optical networks are “very prepared” for AI site visitors at present. 5 p.c say they don’t seem to be prepared in any respect.
Ciena and Heavy Studying (now a part of Omdia) have launched new world analysis highlighting how synthetic intelligence (AI) is poised to dramatically enhance site visitors calls for on metro and long-haul networks over the subsequent three years — with communications service suppliers (CSPs) anticipating AI to turn out to be a significant driver of community progress.
The research, based mostly on a customized survey of 77 CSPs spanning mounted, cellular, converged community operators, and cable suppliers, got down to perceive how AI functions and workloads will impression capability, service alternatives, and community readiness.
Metro vs. long-haul: The place AI site visitors will hit hardest
The outcomes reveal that CSPs anticipate AI’s share of whole community site visitors to develop considerably. In metro networks, 18% of respondents predict AI will account for greater than half of all site visitors by 2027, whereas practically half (49%) anticipate it to exceed 30%.
For long-haul networks — which join cities, information facilities, and cloud areas — expectations are even larger. Simply over half (52%) anticipate AI will account for greater than 30% of long-haul site visitors in that timeframe, and practically one-third (29%) imagine AI will surpass the 50% mark.
“The fast rise of AI functions — from large-scale fashions to cloud AI companies and edge-to-core workflows … are set to turn out to be main drivers of each native and long-haul community site visitors,” mentioned Sterling Perrin, Sr. Principal Analyst, Heavy Studying .“For metro networks, the place AI will compete with video, internet, and IoT site visitors, the projected progress is putting. With AI anticipated to take an excellent bigger share of long-haul capability inside three years, it’s clear that AI information flows, together with these used for coaching and inference, will put unprecedented calls for on CSP networks.”
Alternatives: Excessive-bandwidth wavelength companies lead the pack
CSPs anticipate to play a broader position in AI connectivity, particularly in offering high-bandwidth wavelength companies for enterprise clients. Half of respondents ranked these companies — spanning 100G, 400G, and 800G charges — as the highest progress space tied to AI over the subsequent three years.
North American operators are notably bullish, with practically two-thirds projecting AI will make up greater than 30% of each metro and long-haul site visitors. Against this, simply over one-third of respondents in the remainder of the world (RoW) predict comparable AI-driven contributions.
Demand for darkish fiber ranked decrease compared, with solely 25% of respondents anticipating it to see probably the most progress from AI. As an alternative, many operators imagine high-bandwidth wavelength companies will overtake darkish fiber because the dominant transport possibility for AI — particularly because the market transitions from AI mannequin coaching dominated by hyperscalers to enterprise adoption and day-to-day utilization.
Enterprises seen as key AI site visitors drivers
When requested which buyer section will drive probably the most AI-related site visitors progress, CSPs pointed squarely to enterprise clients. Three-quarters (74%) anticipate enterprises — somewhat than hyperscalers or cloud suppliers — to generate the most important share of latest demand over the subsequent three years.
“Darkish fiber builds for hyperscalers are an early win for some operators,” the report famous. Nonetheless, it added that as AI adoption broadens, wavelength companies are anticipated to turn out to be the dominant connectivity mannequin for enterprises looking for AI capabilities.
Challenges: Capex and technique prime the checklist
Whereas CSPs see the AI alternative clearly, in addition they acknowledge that community readiness is a piece in progress. Solely 16% of respondents say their optical networks are “very prepared” for AI site visitors at present, whereas 39% describe themselves as “prepared” however nonetheless requiring upgrades. One other 40% say they’re solely “considerably prepared,” and 5% admit they don’t seem to be prepared in any respect.
The highest three challenges cited in making ready for AI had been capital expenditure constraints (38%), go-to-market and enterprise technique alignment (38%), and community administration complexities (32%).
Geographic readiness hole
The survey discovered a notable geographic divide in community readiness perceptions. Whereas 68% of RoW respondents say their optical networks are prepared or very prepared for AI, simply 44% of North American operators really feel the identical. This hole probably displays North America’s larger site visitors expectations — and its better issues over capability shortfalls — in comparison with different areas.
“Whether or not RoW CSPs are actually ready for AI or just will not be but seeing the site visitors impacts will turn out to be obvious within the subsequent one to 2 years,” the report noticed.
A slim window to arrange
The overarching message from the analysis is that AI-driven community calls for are coming quick — and CSPs have a restricted window to arrange. Whereas many operators are optimistic, the report stresses that “it is vitally early days” and that the true site visitors impacts of AI have but to be felt.
The authors conclude that now’s the time for CSPs to construct sturdy enterprise circumstances, safe funding, and speed up optical community upgrades to place themselves for the approaching AI site visitors increase.
