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Network Infrastructure Magazine | Tuesday, June 06, 2023
Artificial intelligence addresses network management complexity in WLAN, while Wi-Fi 6E expansion and cloud-managed solutions with AI-Ops present growth potential. Vendors adapt to trends, enhance offerings, and explore new opportunities.
FREMONT, CA: Artificial intelligence has been presented as a solution in numerous industries to solve some of their most pressing issues, and this type of problem in the field of WLAN is network management complexity. IT teams in companies are stuck in the resolution of challenges such as interference, bad coverage, and congestion while dealing with trouble tickets that are resulting from an application or WAN-level problems. When user experience takes a dip, without fail, the Wi-Fi is blamed.
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Public cloud-managed solutions often introduce high-end AI features to the market first. As of the fourth quarter of 2022, only 25 per cent of worldwide units were shipped for public-cloud managed networks, creating an exclusive and premium experience while indicating significant market growth potential. These solutions not only generate recurring revenue streams that vendors actively pursue but also contribute to increased profit margins.
In the realm of campus networking, AI-Ops represents the next frontier of innovation. Manufacturers anticipate that the cost savings in enterprises' IT expenses will translate into improved financial performance. It is predicted that the revenue derived from these features will continue to expand, with public-cloud managed WLAN solutions projected to account for over 40 per cent of WLAN manufacturer revenues by 2027.
Wi-Fi 6E Expansion
Numerous companies are slowly announcing the implementation of the new 2x2 Wi-Fi 6E AP. In the first quarter of the year, there have been multiple statements that will aid in the acceleration of 6E adaption.
The availability of additional Wi-Fi 6E 2x2 products is expected to lower the average price, which has been relatively higher compared to previous WLAN technologies. However, it is anticipated that the lifespan of the protocol will be shorter than its predecessors. Although some prominent vendors highlight that Wi-Fi 7 standards are still awaiting ratification by the IEEE, Chinese manufacturers have already commenced shipping limited quantities of enterprise-class APs based on Wi-Fi 7.
Although the network access control market is relatively small, the recent announcements from vendors indicate that shifting this function to the cloud is a strategic decision aimed at securing revenues from WLAN and campus switching. These choices prove wise as companies anticipate a challenging 2024. With the market facing the task of handling a significant backlog of orders, campus networking revenues are expected to decline. In such circumstances, vendors will seek to maximise customer loyalty and engagement to sustain their enterprise foothold.
The campus network-as-a-service (NaaS) market is still in its early stages, characterised by complexity and diversity, which presents ample opportunities for new players to distinguish themselves. Different service providers offer varying approaches to campus NaaS, but they all share the objective of generating recurring revenue streams with high-profit margins. The extent of the impact these new offerings will have on the market and their ability to create fresh revenue sources are uncertainties currently unfolding.
In response to four significant trends in the WLAN industry, manufacturers are expanding the depth and breadth of their offerings, improving their technological advancements and commercial attractiveness. The WLAN industry has experienced remarkable growth in recent years. As the market becomes more challenging, manufacturers will need these improvements to retain their customer base while exploring new market expansion opportunities.
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