& cplSiteName &

Virtualization to Transform CPE

Simon Sherrington
Heavy Lifting Analyst Notes
Simon Sherrington
5/5/2014
50%
50%

Network functions virtualization (NFV)/software-defined networking (SDN) fever is gripping the telecom world, and the effects of redesigning networks to make greater use of virtualization and programmable control plane techniques look set to be felt throughout network operators' organizations. One place where NFV is about to have a major impact is the customer premises.

Operators spend billions of dollars supplying, installing, configuring, and maintaining customer premises equipment (CPE), both for enterprise and for residential customers. Many customer sites are equipped with multiple devices: set-top boxes, data storage, and home gateways in the residential market. There are also routers and security, bandwidth management, and storage devices in the business market, to name just a few.

Virtualization techniques offer the opportunity to reduce the number of individual devices at locations; to enable remote hosting, configuration, and management of functions traditionally resident at the customer premises; or even to enable virtualization of functions and features onto higher-spec individual devices at the customer site. There have been debates for years about whether customer premises should have thin-client devices or multi-purpose devices capable of running many complex applications. That debate has intensified in the world of NFV.

Many vendors of residential and enterprise CPE have yet to show their hands. They remain tight-lipped about how they plan to evolve their products and services to cope with the changes that will be forced on them as operators rebuild their networks for the next decade. (Most of them state privately that they are involved in tests and trials with friendly customers.)

Those that have launched new products and services under the broad description of virtualized CPE, though, have already shown enough for us to see that CPE virtualization is going to shake up the supply chain, is going to lead to new players arriving in the market, and is likely to lead to several suppliers disappearing.

In the view of this analyst, operators will not be slow to adopt virtualization techniques at the customer premises: There is too much money involved, and the possibilities for new technology approaches are too compelling. The options newly available to network operators and service providers promise to reduce capex, drive down ongoing opex, speed time to market, and enable them to launch new services without replacing old equipment. In the words of one industry player interviewed for the report, operators are "clamoring" to see, test, and explore the business cases for virtualized CPE functions.

The latest Heavy Reading Insider, Virtual CPE: Virtually Ready to Cut Costs, Drive Revenue & Disenfranchise Vendors, examines the state of development of CPE virtualization, exploring the benefits, potential timelines for adoption, and solutions available from selected leading players in the enterprise and residential CPE markets.

— Simon Sherrington, Analyst, Heavy Reading Insider


Virtual CPE: Virtually Ready to Cut Costs, Drive Revenue & Disenfranchise Vendors, a 20-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.

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
RMersh
50%
50%
RMersh,
User Rank: Light Beer
5/8/2014 | 2:00:36 PM
Re: Revolutionary
Possibly, but truck rolls are not just an issue of the CPE. And of course reconfiguring CPE is already being done via TR-069, but yes NFV could have some very good impacts on CPE and the provision of services. The BBF is already working in the area of the virtual RG both for business and residential. You check the work in progress at: www.broadband-forum.org
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
5/5/2014 | 2:26:24 PM
Revolutionary

NFV is going to have a huge impact for the positive on CPE. Carriers will be able to reconfigure customer equipment on the fly in software without having to roll trucks, and offer benefits such as 30-day free trials that today are economically impossible. 

"There have been debates for years about whether customer premises should have thin-client devices or multi-purpose devices capable of running many complex applications."

Interesting perspective. Certainly the success of webmail and other apps suggests that thin clients should be reasonable for all but the most complex business uses. 

 

Educational Resources
sponsor supplied content
Educational Resources Archive
More Blogs from Heavy Lifting Analyst Notes
As the Internet of Things (IoT) market grows exponentially over the next few years, vendors will start focusing in on IoT platforms and the impact virtualization can have on the market, with rapid development and lower costs as main points of interest.
The Open Compute Project and the shift to SDN and NFV is driving a complete change in the architecture of telecom data centers and infrastructure.
Cable operators have some key hurdles to overcome if they wish to fill the growing mobility needs of small and large businesses alike.
With more and more businesses seeking mobility solutions, cable operators have the chance to carve out an even larger share of the commercial market.
Cable is going big with data analytics, digging into its big data stores, with the hope of garnering information, simplifying operations and improving services and customer care.
From The Founder
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
Flash Poll
Live Streaming Video
Charting the CSP’s Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it’s going from two industry veterans.
LRTV Custom TV
Cisco's Innovations in Cable

5|26|16   |   03:18   |   (0) comments


Marc Aldrich from Cisco discusses the latest in security, the evolution and momentum for CCAP and what the industry will be seeing next from Cisco.
LRTV Documentaries
Leading Lights 2016 Highlights

5|25|16   |   02:26   |   (1) comment


Some of the high points from this year's Leading Lights awards dinner at the Hotel Ella in Austin, Texas.
LRTV Documentaries
Light Reading Hall of Fame 2016

5|23|16   |   05:43   |   (0) comments


Find out who has been welcomed into Light Reading's Hall of Fame this year.
LRTV Custom TV
ZTE TM Forum Highlights

5|23|16   |     |   (0) comments


ZTE showcased its new ICT solutions at TM Forum in Nice.
LRTV Interviews
Gamma's MD on the Emergence of UC2

5|20|16   |     |   (0) comments


Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
LRTV Custom TV
The Ultimate 5-Minute Guide to Digital Customer Engagement

5|20|16   |     |   (0) comments


In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for us the five essential capabilities for successful Digital Customer Engagement. Don’t miss!
LRTV Custom TV
NFV in 2016: Part 1 – NFV Use Cases Get Real

5|19|16   |   05:57   |   (0) comments


Consensus is building around the key use cases for NFV, including managed IP services at the network edge and on customer premises, which can generate new revenues from enterprises/SMBs and consumers; Evolved Packet Core to support LTE migration; and adjacent technologies, such as TAS and IMS, to support VoLTE and next-generation charging and policy control ...
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 3

5|19|16   |     |   (0) comments


Steve Vogelsang discusses the challenges of operational transformation and how Nokia helps its customers. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Level 3: Why UC Is In Demand

5|17|16   |   04:12   |   (1) comment


Andrew Edison, Level 3's senior VP of sales, EMEA region, talks about the drivers of growth in the unified communications services market.
LRTV Custom TV
ARM's OPNFV Action

5|17|16   |     |   (0) comments


At the ARM booth at MWC 2016, Joe Kidder and Bob Monkman speak to Light Reading about OPNFV and their upcoming action.
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 2

5|16|16   |     |   (0) comments


Steve Vogelsang gives advice to service providers on how to move to NFV. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Interoute CTO on NFV's Maturity

5|13|16   |   06:46   |   (1) comment


Matt Finnie, CTO at international operator Interoute, explains how NFV has made life easier in terms of logistics and how Interoute can now enable a 'software-defined moment' for its customers.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
December 6-8, 2016,
June 16-18, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
DT: Telcos Must Escape Vendor Prison
Iain Morris, News Editor, 5/24/2016
AT&T to Start 5G 'Friendly' Trial by 2016 End
Dan Jones, Mobile Editor, 5/24/2016
Cisco's Patel Hails 'Microculture' Successes
Iain Morris, News Editor, 5/26/2016
AT&T's Margaret Chiosi Retires
Ray Le Maistre, Editor-in-chief, 5/25/2016
Cable Is Eyeing Its Retail Options
Mari Silbey, Senior Editor, Cable/Video, 5/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.