Light Reading
Network functions virtualization (NFV) could revolutionize the way networks are built and drive down operators' network costs

NFV: Set to Break the Big Box Brands

Heavy Lifting Analyst Notes
Heavy Lifting Analyst Notes
Heavy Lifting Analyst Notes
8/9/2013
50%
50%

The relationship between existing vendors of network equipment and telecom network operators is set to change dramatically if operators' visions of the future are realized. Network functions virtualization (NFV) involves taking telecom network functions -- traditionally delivered in proprietary devices -- virtualizing them and running across shared common off-the-shelf (COTS) servers, storage devices and Ethernet switches. It is a vision backed by many of the world's biggest telcos -- a group that represents many, many billions of dollars of annual capex -- and that makes it very hard for network equipment providers to ignore.

Operators have seen how cloud computing, virtualization and new approaches to running global cloud-based service operations have revolutionized enterprise networking and computing. They want to use the same technologies to drive down their own capex and opex, and to change the way they manage their service businesses.

It will take time -- many years, in fact -- for the physical changes to the infrastructure to become embedded; these changes will happen incrementally. But the physical changes will be just the start of the process. There will also be changes in the way operators interact with vendors and the way they buy solutions from them. NFV has the potential to lead to a new wave of market fragmentation. Over the last 10 years, observers of the operations/business support system (OSS/BSS) market have witnessed a tremendous amount of consolidation. Many smaller OSS/BSS providers have failed or have been acquired, but the widespread migration of network functions onto virtualized infrastructures opens up an opportunity for any company with clever people writing code to develop solutions that can be deployed on standard platforms. There will be a proliferation of innovative start-ups claiming that they can build a better piece of software, which is easy for telcos to try. There is tremendous potential for a new wave of innovation and fragmentation.

Where does this leave the old guard? Well, for a start, operators will expect all the independent software providers, network equipment providers and anyone else they work with to integrate their solutions with the telecom operators' virtualization middleware. Some will attempt to run this middleware themselves; many more will look to outsource the operation of this. The entrenched network equipment providers and systems integrators are already fighting very hard to be these gatekeepers: that is, the companies operating that virtualization middleware.

Operators will also demand that network functions software meets stringent service-level agreements (SLAs), and this is likely to be one of the primary levers the established players will use to retain their share of the market. Network function providers will all be required to attain those SLAs on equipment delivered and maintained by third parties. This will change the contractual relationship with network operators in ways that are hard to predict; but the bigger providers will have the resources to do more testing and more certification and validation, and -- of course -- they will have a head start on rivals and more control over their own destinies if they are running those middleware platforms.

Old players that don't change their ways will die out in the newly virtualizing telecom world. Those that adapt will find a new role. The latest Heavy Reading Insider, "Picking Winners From the NFV Revolution," takes an in-depth look at the potential benefits of NFV for operators, and at how the major network equipment providers are evolving their strategies so they can continue to serve their clients in the future. It includes profiles of network equipment providers, systems integrators and independent software providers that have been swift to develop NFV visions and solutions.

— Simon Sherrington, Analyst, Heavy Reading Insider


Picking Winners From the NFV Revolution, a 25-page report, is available as part of an annual subscription (12 monthly issues) to Heavy Reading Insider, priced at $1,595. This report is available for $900. To subscribe, please visit: www.heavyreading.com/insider.

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Ramesh
50%
50%
Ramesh,
User Rank: Light Beer
8/12/2013 | 8:41:35 PM
re: NFV: Set to Break the Big Box Brands
Simon, Report looks to be interesting. Couple of blogs I wrote recently on VNF trends I have seen, related to points you make, in the market may be of interest to you/readers:

http://www.overturenetworks.co...
http://www.overturenetworks.co...
More Blogs from Heavy Lifting Analyst Notes
Because of difficulty acquiring spectrum, many utilities are forgoing LTE, and turning to legacy technologies such as CDMA and WiMax.
The machine-to-machine (M2M) and Internet of Things (IoT) markets will grow exponentially, requiring more robust testing solutions.
Aggregation and edge transport networks are undergoing a wave of innovation.
The challenges associated with small cell deployments, the impact of virtualization, and the demand for dark fiber are just some of the topics to be debated at the upcoming Backhaul Strategies conference in New York City.
The news that Apple's new iPhone 6 will now support Voice over LTE kind of a big deal.
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Using Service Quality to Drive WiFi Monetization

10|22|14   |   6:51   |   (0) comments


Live from the SCTE conference: Heavy Reading's Alan Breznick explores the forces shaping the WiFi opportunity in an interview with CableLabs' Justin Colwell and Amdocs' Ken Roulier.
LRTV Custom TV
Distributed Access Architectures – 2

10|21|14   |   8:51:00 AM   |   (0) comments


ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
LRTV Custom TV
Distributed Access Architectures – 1

10|21|14   |   9:01   |   (0) comments


SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
LRTV Custom TV
The WiFi Road to Riches – 2

10|21|14   |   3:58   |   (0) comments


ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
LRTV Custom TV
The WiFi Road to Riches – 1

10|21|14   |   10:15   |   (0) comments


SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Google: Carriers & Cloud Providers Need to Cooperate
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/16/2014
Could Data Be the New 'Currency'?
Ray Le Maistre, Editor-in-chief, 10/16/2014
iPad Air 2 Lets Users Switch Carriers Any Time
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/17/2014
Analysts Warn of Major NFV Gaps
Carol Wilson, Editor-at-large, 10/22/2014
CBS Takes OTT Plunge
Mari Silbey, Independent Technology Editor, 10/16/2014
Like Us on Facebook
Twitter Feed