T Geography Explains the Internet - State of Connectivity with Dennis Thankachan

Introduction

• Host: Greg Bryan
• Guest: Dennis Thankachan, Co-founder and CEO of Lightyear
• Focus: Discussing Lightyear's state of connectivity report, exploring trends in Telecom pricing, AI's impact on bandwidth demand, and the evolution of network technologies.

Lightyear Overview

• Lightyear provides a digital Telecom lifecycle automation platform for enterprise networks.
• Aims to digitize and automate the lifecycle of Telecom services (Internet connections, WAN circuits, data center space, phone systems, etc.)
• Offers procurement, network inventory management, and bill consolidation services.

State of Connectivity Report

• Data Source: 350+ enterprise customers, including Fortune 500 companies.
• Goal: Provide insights and transparency in telecom pricing and trends.

Key Findings

1. Telecom Pricing and Global Inflation

   • Historically, telecom prices decrease by 5-10% annually.
   • Recent trends show stagnation in the US and cost inflation in Latin America, Europe, and Asia-Pacific.
   • Inflation affected by increased costs of specialized labor and hardware.

2. Shift to DWDM and Point-to-Point Services

   • Enterprises moving towards DWDM (Dense Wavelength Division Multiplexing) for higher bandwidth and efficiency.
   • Decline in Ethernet point-to-point requests; increase in DWDM circuit requests.

3. Impact of AI on Bandwidth Demand

   • AI and other technologies driving increased bandwidth demand.
   • Bandwidth needs are compounding similar to past technological shifts (e.g., streaming).

4. Decline of MPLS and Rise of SD-WAN

   • Decline in MPLS usage has leveled off.
   • Majority of enterprises utilize public internet connectivity with SD-WAN.
   • New SD-WAN solutions emerging to address evolving network needs.

5. Network as a Service (NaaS)

   • NaaS offers on-demand, scalable network infrastructure.
   • Mixed enterprise interest; real demand is still emerging.
   • Different vendors offer varying NaaS models (e.g., Verizon, Lumen, Megaport).

Lightyear's Recent Developments

• Expansion from SMB to a true enterprise offering.
• Introduction of bill consolidation product.
• New dashboards and API integration for better data management.
• Implementation of LLM-powered backend improvements.
• Growth to over 350 enterprise customers and 5,000 users.
• Raised $31 million Series B financing.

Industry Challenges

• Carrier APIs often inaccurate in real-world application.
• MEF's goals for standardization face a lack of carrier incentives.
• Lightyear aims to offer transparency and efficiency independently.

Final Thoughts

• The industry continues to evolve with technological advancements.
• Continuous monitoring and adaptation are crucial to meet enterprise needs.

Resources

• Visit Lightyear's website at lightyear.ai for the state of connectivity report and more information.

This session provided an extensive view into the current trends and challenges within the telecom industry, focusing on how enterprises are adapting to an evolving technological landscape. The conversation highlighted the importance of transparency and innovation in network management and procurement.