Light Reading

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
Join our fireside chat at Mobile World Congress in Barcelona as we discuss the operational implications of NFV with Justin Paul, head of OSS marketing at Amdocs.
The race to deliver gigabit broadband services is accelerating, and G.fast is a key technology that telecom service providers can deploy to compete successfully.
If NFV is to progress, proofs of concept and trials need to come out of the lab and into live networks in 2015.
This year is expected to be a year of great market evolution across most telecom sectors, specifically in virtualization and Long Term Evolution (LTE).
Bring your own device (BYOD) is flourishing, creating the need for better security on shared personal/workplace mobile devices.
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
Between the CEOs
EXCLUSIVE: Cisco's Chambers on Reinvention

3|3|15   |   8:24   |   (0) comments


Light Reading CEO Steve Saunders talks transformation and virtualization – including Light Reading's independent testing of the vendor's virtualization solutions – with Cisco CEO John Chambers at Mobile World Congress in Barcelona.
LRTV Documentaries
The Three Cs of MWC15

3|2|15   |   2:33   |   (1) comment


My visit to this year's Mobile World Congress is going to dominated by three Cs – cloud, cells and coffee.
LRTV Huawei Video Resource Center
Huawei Shares Its Vision of the Future of Mobile Networks Innovations

2|26|15   |   2:30   |   (0) comments


Mobile broadband is changing our lives. It's reshaping the Internet, industry, and society. It allows us to freely connect with one another anytime, anywhere. At this year's Mobile World Congress, Huawei will share its latest insights and newest ideas and technologies that will shape the future of MBB. They will showcase their end-to-end MBB solutions that will ...
LRTV Huawei Video Resource Center
Accelerate Digitizing, Boost Digital Business

2|26|15   |   6:14   |   (0) comments


A new digital revolution is leading us to a better connected world. Together with millions of digital partners, Huawei will help CSPs to build their digital service ecosystem and aggregate a wide variety of digital services. In this video, we find out how Huawei is going to help CSPs implement digital operations.
LRTV Huawei Video Resource Center
The Secret Recipe to Enabling Hyper-Growth Industries

2|26|15   |   3:38   |   (0) comments


With a number of successful cases on network capability exposure, Huawei is going to share the secret recipe to enabling hyper-growth markets with a step-by-step approach.
LRTV Documentaries
BTE 2015 Is Bigger & Even Better

2|25|15   |   03:13   |   (4) comments


This year's Big Telecom Event (BTE) in Chicago is going to provide more opportunities than ever for networking, getting to grips with key industry challenges and opportunities and, equally as important, having some fun.
LRTV Interviews
Light Reading ICT Leaders Roundtable at MWC 2015

2|12|15   |   1:07   |   (2) comments


On Sunday March 1, 2015, Light Reading will host an ICT Leaders Roundtable in partnership with Huawei. At this half-day event, CIOs, analysts and researchers will discuss key industry trends like virtualization in the cloud with a specific focus on new business models. Located at the luxurious Renaissance Hotel near the Fira Barcelona, space is limited so please ...
LRTV Documentaries
Going Green in 2015

2|12|15   |   02:04   |   (0) comments


Energy efficiency is set to be an incredibly hot topic in the telecom industry this year.
LRTV Custom TV
SDN & NFV: Where Are We Going From Here?

2|11|15   |   11:27   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss gives his perspective on why SDN and NFV should be tightly interconnected and how he sees the industry moving forward.
LRTV Documentaries
Time for Gigabit Europe?

2|9|15   |   01:27   |   (4) comments


Gigabit broadband networks are springing up all around the US and they'll soon become more commonplace in Europe.
LRTV Interviews
Brocade Brings New IP Vision to 2020 Vision Executive Summit

2|3|15   |   4:23   |   (0) comments


In December 2014, Light Reading gathered telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Brocade's Kelly Herrell shared his company's strategy at ...
LRTV Interviews
Brocade's Kelly Herrell on the New IP

2|2|15   |   12:36   |   (0) comments


In December 2014, Steve Saunders sat down with Brocade VP of Software Networking Kelly Herrell at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Brocade's approach to the New IP, the future of the telecom industry, and more.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
Internet Pioneers Decry Title II Rules
Carol Wilson, Editor-at-large, 3/2/2015
Small Cells Enabling Location Services
Sarah Thomas, Editorial Operations Director, 2/25/2015
Verizon Takes Radio Dot to Detroit, VoLTE Overseas
Sarah Thomas, Editorial Operations Director, 2/27/2015
FCC Adopts Title II Rules
Alan Breznick, Cable/Video Practice Leader, 2/26/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.