Swisscom is to use network virtualization technology from SDN startup PlumGrid following the operator's decision to use OpenStack as the key component of its cloud services orchestration system. (See Swisscom Deploys PlumGrid and Plumgrid Launches SDN Overlay Platform.)

The Swiss carrier is deploying the vendor's new OpenStack Networking Suite, a move that the two companies believe will reduce its cloud services provisioning time from weeks to seconds. (See PlumGrid Launches OpenStack Networking Suite, Raises Cash.)

"Over the next few years we'll migrate the majority of our IT applications and services to our cloud, and OpenStack is the core of our cloud virtualization orchestration," said Lukas Fluri, Swisscom AG (NYSE: SCM)'s Head of Cloud, in an official announcement.

The move is the latest example of growing support for open source capabilities among major operators, a trend that looks set to reshape the dynamics of network planning and implementation. (See Will Carriers Step Up to Open Challenge?)

The news comes as Sunnyvale, Calif.-based PlumGrid Inc. closed its Series B round of financing, totaling $16.2 million. The round, led by Longworth Venture Partners and including investments from Qualcomm Ventures and Swisscom Ventures, among others, takes PlumGrid's total investment to about $27 million. (See Plumgrid Raises $10.7M.)

— Ray Le Maistre, , Editor-in-Chief, Light Reading