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Msg  185522 of 185841  at  12/5/2023 10:48:28 AM  by

toddforthree


 In response to msg 185521 by  sterigmos318
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Re: Does Lumen Own Exaswitch or

Yeah. So, if you think about where we are today in the enterprise side, right, legacy telecom, you've got things like VPN and voice that are in decline. We're focused very heavily on how we migrate those customers to newer forms of telecom. And I did not come from the telecom landscape, and I've said many times, one of the things that always staggered me about telecom, kind of one of those unwritten rules was, is that once you got a customer on a legacy service, never talk to the customer again because they might turn something off. We're taking exactly the opposite approach, being very proactive about how we move them to newer services. But if you think about that -- that's really kind of stabilizing the base.

If you think about innovating, GenAI is here and it's here right now and it's consuming enormous amounts of data. And it's made more complex by the fact that large enterprise today is doing all their compute needs in hybrid cloud environments. What does that mean? That means on-prem, public cloud, private cloud, edge, and multi-cloud. And so, what does that mean? That means they're using more than just one third-party cloud provider. Their own private clouds could be in multiple locations, or on-prem could be in multi-locations. So, it's a very complex web that exists today.

And what matters in all of that, as data is exploding, is speed and access. So, if you think about legacy telecom, the most innovative that anybody has gotten is, "Hey, we've got this new faster fiber." Okay, that's a commodity. And we built 6 million miles of 400-gig waves, there's another 6 million going in the ground now. And that's important foundationally to us, but it's not about the fiber, okay? If you stop there, it's a commodity. It continues to be a race to the bottom.

What it's about is it's really about our ability to make that data easy to consume through digitization. So, think about today when you're a customer for at home or when you're a large enterprise, it requires truck rolls to get connectivity between A and B. Well, what about a world where just like public cloud, you'll log onto your computer and you can get port to port connectivity in minutes, if not seconds, from any place to any place, that's NAS. That's what's been launched. And a lot of our network is NAS enabled, more of it will continue to be NAS enabled.

The second piece of it is really what we would call zero gravity. So again, ease of data movement. We launched a product called ExaSwitch. It's a physical device. It's a switch that is mirrors. We have IP on the use of that in telecom. No one else can use it. And that allows you to move the equivalent of a million 4K videos in an instant. So, in today's world, moving stuff from AWS to Microsoft to Google, there's a lot of that transport and the hyperscalers all wanted this technology for that reason. And so, as you're in this more complex environment, the ability to move those huge workloads is critical.

The next big thing you need is ubiquity and proximity. What does that mean? That means that as we go forward in time, more and more of this data consumption, you heard it on the AI panel, is getting pushed further and further away from the point of consumption. Because what's the number one constraint? Power, right? These data centers will pull down the grids of major metros. So, they're getting further and further away where they can find the power. They need high speed in between, but they also need flexibility.

Our edge compute fabric, what does that allow? It allows you to, again, through NAS, access public cloud, and you can do all of your compute, your app development live in a zero-latency environment. It's already built and there's huge cost savings associated with it because you're not paying a whole lot of egress fees to get to that data.

So, when you look at all those things in combination and then say, "All right, I'm going to wrap security around that where we have proprietary products," that's the future. And that's how customers want to manage their telecom. And more and more of those customers as we're sitting within the financial services sector is a big one, is not asking us why, they're asking us how fast they can get it, because they need it now. It huge opportunity.

Frank Louthan

So, is this net new revenue with NAS and ExaSwitch, or is this just an evolution of products that customers were paying for before that they're just going to move traffic? And then kind of the follow-up, what keeps competitors from being able to offer something similar?

Chris Stansbury

So, a few things. It's definitely net new. There will also be cannibalization as it relates to our existing business, but we will be a share taker in this because we're the only ones that are innovating in the space. Again, another unwritten rule of telecom, cannibalization is bad. Guess what? Our consumer fiber business is a great job where we never cannibalized ourselves and now we have 10% market penetration. Cannibalization is good if you're innovating and you're pushing forward because then you'll take share and that's where our focus is.

Now, can others do it? I guess with the right level of investment. But if you look at the other major players in the space, they are either strictly commodity providers or they would fall into what I would call more legacy telecom, where their primary focus is on wireless cell use, and they're not investing in the space. So, we've got a great opportunity as a result.

Frank Louthan

Okay, great.

Chris Stansbury

And by the way, ExaSwitch is IP, as I said. That's only ours to use, no one else has that.


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Replies
Msg # Subject Author Recs Date Posted
185523 Re: Does Lumen Own Exaswitch or sterigmos318 0 12/5/2023 11:08:13 AM
185524 Re: Does Lumen Own Exaswitch or CreightonAlum 0 12/5/2023 11:33:24 AM




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