In the time of COVID-19 pandemic, when most activities are being conducted remotely, the effective and efficient management of satellite networks is more crucial than ever.
Software solutions are the core engine of many businesses. It can even be said the software is the business. The right software solution can make or break a service offering. The satellite industry is one of those industries where software and network management plays a key role. Therefore, the requirements for software and network management solutions for the satellite market are usually very stringent. For example, Very Small Aperture Terminal (VSAT) networks must be flexible, scalable, versatile, easy to implement and operate in various conditions for specific requirements according to established industry standards. As a business, VSAT networks must also generate revenues, so a network management system should not only function optimally to meet customer requirements, it must also yield profit.
With the growth in enterprise, broadband and other verticals for the satellite industry, VSAT network management systems not only have to be flexible and reliable, they often require complex solutions and innovative approaches. Companies like Intelsat and other satellite operators typically work with third-party software solutions companies for their satellite networks. In choosing a network management provider, it’s important to work with companies that not only have proven track records but also have a culture of providing innovative solutions that meet their customers’ requirements.
Network Management Market Trends
According to Kenneth Research, the global enterprise VSAT market is projected to grow beyond US$ 10 billion by 2024. And one of the reasons there will be such massive growth is due to declining costs in satellite manufacturing and launches and the advent of new Low Earth Orbit (LEO) and Medium Earth Orbit (MEO) satellite constellations. This has opened the gateway for numerous players to deploy networks for various markets. Opportunities presented by the upcoming technologies like 5G, Internet of Things (IoT) and Machine-to-Machine (M2M), will pave the way for the expansion of satellite networks. And this will result in the demand for sophisticated and highly reliable software solutions for satellite network management. Down the value chain, these business models are going to make satellite broadband/internet services cheaper as well as more reliable with respect to higher bandwidth which, in turn, would lead to greater demand for these services.
One of the more promising markets for satellite technology is the aeronautical field. According to Inmarsat’s IFC survey in 2018 it is estimated that the IFC revenues reach approximately US$ 30 billion by 2035. The maritime market is equally promising. Satellite communications technology is the only way to connect in the world’s oceans, which covers 70 percent of the earth’s surface. Commercial cargo shipping, cruise lines and oil and gas markets, among others are driving the demand for maritime satellite communications. The global maritime satellite communications market size was valued at US$ 2.64 billion in 2018, and will post a CAGR of 8.9% from 2019 to 2025, according to Grand View Research. Even though the current global pandemic has led to a drastic slowdown in the aviation and martime industries, the long-term prospects in these industries remains solid according to recent research from NSR and other consulting firms.
As the digital expansion star-ted integrating various industrial verticals, Over-The-Top (OTT) and Internet Protocol Television (IPTV) are becoming more dominant as opposed to the satellite broadcasting services. This is leading to increasing demand for satellite broadband services. While the network architecture of satellite broadcasting was carried as it is since the early 90s, now the satellite network system needs an upgrade with respect to cloud technology for the video content distribution. One of the critical aspects of the satellite network management systems with respect to the video market will be the bandwidth allocation and subscription management; due to the upcoming wave of OTT and IPTV services. Satellite network management systems will be crucial for providing custom-tailored services to the subscribers as well as tracking the movement of the content consumption on a local and regional scale.
There is also opportunity for satellite technology in the rollout of 5G networks. 5G is a disruptive technology that is set to transform wireless connectivity, enabling ultra-fast broadband speeds, increased efficiency, reduced network costs, and more scalability, among a wide range of other benefits that will open up new markets and drive technology innovation. And 5G comes at the perfect time. The number of connected devices that are in use worldwide now exceeds 17 billion, according to the latest research from IoT analytics and is projected to reach over 50 billion in the next few years. With 5G, the industry can better address today’s connected world and its growing connectivity requirements.
The demand for both hardware and software solutions is expected to double in the coming decade. Similarly, the satellite network management system is also expected to provide advanced end-to-end solutions to the operators and service providers. This involves crucial aspects such as product management, monitoring, analytics, subscriber management, customer service, revenue generation, among others. Reliable and automated satellite network management systems are key to ensuring the satellite industry’s continued disproportionate growth.
Customer Requirements
Satellite operators are demanding end-to-end satellite network solutions as the industry is leveraging several business opportunities in key market verticals. In 2018, with the industry’s focus shifting towards managed service networks, satellite operator Intelsat contemplated various options to provide their customers a resourceful, easy-to-use way to manage terminals throughout their lifecycle. Given the nature of managed services networks, the envisioned new platform was intended as a business layer interacting with multiple other existing systems.
Various requirements have been brought forward, among them reliable and simple terminal lifecycle management, comprehensive permission management, and the need for short development cycles to rapidly address a changing market environment and customer needs. With customers from all over the world and some of their staff preferring their native language, support for multiple languages was essential, as well.
Faced with the choice between an internal project and external vendors, Intelsat identified G&S SatConnect® as a potential solution which covered most of the intended features out-of-the-box and was flexible enough to be customized where necessary. A track record of previous successful integrations proved this to be a viable option for the intended purpose.
Time was tight and a continuously growing list of requirements increased the scope beyond the initial design. Once the decision for the future IntelsatOne Flex portal was made, a major effort towards reaching the specified feature set commenced for all stakeholders involved.
Software projects of this size and scope usually require months of preparation and often end up being more complex and expensive while delivering less than what was originally promised. With G&S SatConnect®’s modular architecture and many of the required features being available already, in this case the project could be streamlined. As only minor customizations to existing features were required, all effort could be focused on successfully developing clear differentiators that set Intelsat apart from their competitors. One of the most popular of these features is the comprehensive, yet easy-to-use Fair Access Policy (FAP)feature, which allows not only setting rate limitations for individual terminals but for entire groups or organizations. Defining a collective volume package across terminals has improved the network quality and resulted in better service for all IntelsatOne Flex customers while also providing exciting new revenue opportunities.
With a mere four months time span between project start and delivery, a “white glove service” provided support during customer onboarding from the G&S team. Feedback has been overwhelmingly positive as the management effort per terminal has seen a significant reduction while at the same time new business cases have been enabled. Furthermore, Intelsat itself has seen a reduction in support requests and benefits from its increased flexibility as new products can be pushed into the market with minimal lead time.
Building on the foundation that has been laid in 2019, new features and business-focused developments will further distinguish IntelsatOne Flex as a managed network in 2020.
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| To read or download a pdf of the full report on Satellite Network Management sponsored by G&S SatCom click here. |
Key Considerations in Selecting a Network Management Provider
One of the most important decisions you’ll ever make for your business and your customers is choosing the right network management partner. As we have seen in the previous example with IntelsatOne Flex, it’s important to find a company with a proven track record. It is particularly crucial, when you have to come up with innovative solutions within in a very tight deadline. A quick turnaround and speed in getting to market are essential in the rapidly developing satellite industry.
Another key consideration is the ability to provide a turnkey service and an end-to-end solution. “Unlike many other software providers, we don’t just sell the software itself. We support our customers throughout the entire project, from the initial requirements analysis through the implementation phase. Beyond that, we provide pro-active monitoring and 2nd- and 3rd level 24/7 support as well as customer and end-user training. In our development approach we continuously engage the customer with weekly updates and deployments so that feedback loops are short and can be taken into account right away. We measure a successful project by end-to-end success, committing us to rigorous quality control to ensure our customers are happy with our service,” says David Schmitz, G&S SatCom Co-Founder and CEO.
There are many software and network management solutions providers to choose from in the industry. A number of them even have very innovative solutions, but they can be hidden in complex systems from their customers. One key feature of G&S SatCom’s software solutions is that they make the complex innovations more accessible to their clients. “We make complex solutions easier for network operators and service providers to fully utilize the potential that the satellite network can offer,” says Marc Spinneker, Director of Business Development of G&S SatCom. “We consider ourselves an ‘orchestration’ software provider, meaning we automate processes and simplify methods to make it easier to use for both service providers and end-users,” he adds.
One way to differentiate between software and network management solutions providers is the additional value that they can provide to your service. G&S SatCom, for example, can create new revenue streams for your network, which can have an impact on your bottom line. “With our software’s marketplace portal feature, new revenue streams can be integrated in the network management system without any additional effort on the part of the service provider,” says Spinneker. “We can also serve any verticals or applications and have the flexibility to integrate with our third-party software,” he adds. “Simplifying processes, unlocking new revenue streams and facilitating customer engagement through tailored workflows and unique value-adds creates value across the industry, and this is what we can do for any vertical,” says G&S SatCom’s Schmitz.
Conclusion
By all indicators, the new decade of the twenties will be a very exciting time for the satellite industry. This decade will see new satellite constellations and increasing demand for network services for key applications and verticals. These new services will have complex requirements and their own set of challenges. Choosing the right software and network management provider will be ever more essential to meet the many challenges and complex network requirements of the upcoming satellite systems and of new key applications that will be their driving forces.
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Virgil Labrador is the Editor-in-Chief of Los Angeles, California-based Satellite Markets and Research which publishes a web portal on the satellite industry www.satellitemarkets.com, the monthly Satellite Executive Briefing magazine and occasional industry reports called MarketBriefs. Virgil is one of the few trade journalists who has a proven track record working in the commercial satellite industry. He worked as a senior executive for a teleport in Singapore, the Asia Broadcast Center, then-owned by the US broadcasting company CBS. He has co-authored two books on the history of satellite communications and satellite technology. He holds a Master’s in Communications Management from the University of Southern California (USC). He can be reached at virgil@satellitemarkets.com
