In the late 1990’s a large number of DSL providers were raising millions of dollars in venture capital to build their DSL networks in the United States. in order to offer broadband Internet access to local consumers. Many subscribers were still utilizing dial-up services and the demand for faster Internet connections and more available bandwidth were heard loud and clear. Wireline Cable operators were beginning to get into the game, but their coverage was still spotty in many areas of the country.
The DSL providers used the venture capital to deploy DSL multiplexers in collocation facilities within the ILECs (Incumbent Local Exchange Carrier - often called ISP today) central offices and to market DSL services to local consumers. Since the DSL companies did not own any physical cable plant of their own, the only way they could offer DSL services was to use the ILECs copper plant for connectivity into people’s homes and businesses. The DSL providers’ plan was to lease the last mile from the ILEC for $20 per month and charge consumers $40 per month; creating a $20 margin per consumer, per month. However the DSL providers’ business models were majorly flawed and in turn this provided a huge opportunity for the ILECs.
When the ILECs began observing the DSL providers’ business models they immediately knew what to do. The ILECs began to deploy their own DSL multiplexers and undercut the DSL providers by selling their own DSL services for $39 per month. This move destroyed the pure-play DSL providers. Many of them went bankrupt and sold their assets for pennies on the dollar; often times to the ILECs themselves. The ILECs took advantage of the opportunity allowing them to create an entirely new revenue stream.
According to a 2014 survey conducted by Kaspersky Labs, 21% of the nearly four-thousand respondents believe it is the responsibility of the network service provider (ISP) or the website/hosting provider to protect businesses against a DDoS attack. These statistics demonstrate that subscribers are looking to their upstream Providers to solve their DDoS problem. Today the growing global dependence on the Internet as the backbone for organizations to conduct business and ultimately generate revenue is leading to a surge in DDoS attack traffic. This trend will continue for the foreseeable future with broad implications for network security.
The never ending increase in available Internet bandwidth and the widespread access to cyber-attack software tools and even services has led to an explosion in the use of these tactics by cyber criminals to disrupt business. With this threat comes significant opportunity for providers to evolve their protection into a revenue generating opportunity. With the addition of comprehensive, always-on DDoS defense solutions available in highly scalable and flexible deployment models, Providers are now enabled to properly offer DDoS Defense as-a-service to their subscribers. As noted in the Kaspersky findings, subscribers are increasingly looking to their providers to eliminate the DDoS challenge for their business. By capitalizing on the threat, Providers can look to DDoS as a revenue opportunity not just a menace to their business.