Teridion has announced a new cloud networking service to compete with private circuit options such as MPLS. Teridion is partnering with SD-WAN vendors, including Silver Peak and Citrix, to offer enterprises more options in the “middle mile” of their networks.
The company has built out a virtual network that stitches together capacity from cloud providers including AWS, Azure, and Google, as well as tier 2 providers such as Digital Ocean.
Teridion uses IPSec as its overlay to transport customer traffic across its virtual network. It offers an SLA that it says matches service agreements customers would get from providers selling private circuits.
Note that Teridion has not built out its own private network. It doesn’t lease fiber or operate its own backbone. Instead, it places software routers in cloud data centers, and then builds IPSec tunnels between these routers. The company says it has software routers in more than 300 cloud data centers around the world, giving it global reach.
Teridion relies on the cloud providers’ underlay for transport, and uses its overlay plus a combination of monitoring, performance-based routing, and WAN optimization to create its virtual network service.
The company has monitoring agents on its routers that measure throughput, loss, latency and other performance metrics across its virtual network. It feeds these metrics to an analytics system so it can adjust routing paths as necessary to meet service levels.
Teridion also employs WAN optimization techniques such as protocol acceleration to boost performance within its overlay.
The company provides customers with a dashboard to monitor service levels and track performance of the virtual network.
Teridion, which got its start accelerating SaaS applications for vendors such as Box, positions this new service as an add-on for enterprise SD-WAN deployments.
Rather than compete with SD-WAN vendors by offering a full SD-WAN service, the company is partnering with the likes of Silver Peak, VeloCloud, Cisco Meraki, and Citrix as a network connection option.
Teridion doesn’t have a branch gateway or even a software appliance. Instead, customers just use their existing SD-WAN gateway to steer traffic to Teridion’s network based on the customer’s policies.
“We aren’t looking to replace what the SD-WAN vendors are doing,” said Pej Roshan, VP of Product and Marketing in an interview. “It’s complimentary and additive.”
“The SD-WAN providers are a channel for us. SD-WAN providers nail down first and last mile, and we cover the big middle mile.”
Teridion says the new service is fit for use cases such as MPLS replacement and accelerating SaaS-based unified communications applications.
A Sweet Spot Between MPLS And Broadband?
Teridion’s competitors include Mode, a startup built on a similar premise: build out a virtual network optimized for performance and then partner with SD-WAN vendors as an MPLS replacement.
Then there’s Aryaka, which built its own private network to compete with MPLS and positions itself as a global SD-WAN provider.
Cato Networks also operates its own private network as part of its SD-WAN offering, and emphasizes its security features and a highly available network.
And of course, Teridion has to compete not just with the carriers and service providers offering MPLS and other private links, but the growing use of plain-vanilla broadband for branch and remote offices.
In other words, it has to find a sweet spot between MPLS and broadband.
One of the value propositions you’ll hear from SD-WAN vendors, and some of their customers, is that broadband connections from two different providers are good enough to allow them to walk away from private links.
If broadband is cheap and plentiful, and SD-WAN makes it encryptable and generally reliable, Teridion and others of its ilk have to make a strong argument why customers would need anything else.
The service starts at $100 per site per month, and can climb to $440 per site per month depending on features.
The service also has usage tiers similar to a cellular data plan. Customers who exceed their monthly tier will be charged at the higher plan rate for that month.
The service is currently in beta. Teridion expects global availability in the first quarter of 2019.