Light Reading

The SDN Balancing Act

Phil Harvey
The Philter
Phil Harvey
3/21/2013
50%
50%

What balance will service providers find with SDN? As they embrace more flexible networks that offer more control to customers -- as software-defined networking (SDN) suggests is possible -- some interesting questions arise. If service providers are able to deliver more bandwidth on demand, that allows enterprises to be more flexible. The enterprise won't need to spend the time planning for things it can buy easily on demand. But if bandwidth on demand is so easy to turn on and off, will those same enterprises continue to pay for constant connections when they only use some of that always-on access some of the time?

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
dig_deeper
50%
50%
dig_deeper,
User Rank: Light Beer
3/25/2013 | 7:56:50 PM
re: The SDN Balancing Act
myview, Its the example Nick gave to Phil! -áAlthough, agree with your frustration on how Nick and gang's examples are not questioned and examined more objectively.
myview
100%
0%
myview,
User Rank: Lightning
3/25/2013 | 6:32:25 PM
re: The SDN Balancing Act
Seriously? Is bandwidth on demand now an "SDN-like flexibility"? Is bandwidth on demand something new in any sense? Come on, Phil, -áthis, to me, is becoming too embarrassing. I really expect more serious, thoughtful and deeper arguments than this one on Lightreading.
mark-r
50%
50%
mark-r,
User Rank: Light Beer
3/22/2013 | 9:20:04 PM
re: The SDN Balancing Act
Where on-demand resized network connectivity services make financial sense both for the customer and the SP is when the customer organization (as thomaswe seems to indicate) has enough aggregate demand among its internal users/subscribers so that there are stat muxing benefits among them, for more cost-efficient use of the capacity service bought from the SP. In these cases the customer organization's access capacity (fixed by its physical port bit/s rates) to the SP's network forms the bottlenecks, the utilization of which is to be optimized. Eg the SP's network delivering traffic to any given site (or off-net access point) of the customer should dynamically allocate its bandwidth to match the variations of traffic loads to that given access port from the other sites/NAPs of that customer.

The benefit for the customer is maximized utilization of its network access capacity, ie the customer gets more traffic through per unit cost of the service.

The SP can deliver the given level of network on-time throughput service at lower cost base, compared to a case of static bandwidth allocation for the inter-site links for the discussed customer contract. Thus the SP can earn the given revenue level for less cost, thereby improving its profitability.
Phil Harvey
50%
50%
Phil Harvey,
User Rank: Light Beer
3/22/2013 | 3:09:29 PM
re: The SDN Balancing Act
Execs from Level 3 and TDS were the ones who brought the issue up on Wednesday morning's program. So there must be some concern that the business model would be harmed if SPs went too far too fast with SDN-like flexibility.
thomaswe
50%
50%
thomaswe,
User Rank: Light Beer
3/22/2013 | 9:18:51 AM
re: The SDN Balancing Act
On-demand and pay-per-use with TCO savings for the consumer/enterprise
only works out if on the supply side you have a significant demand aggregation
(like Amazon Cloud). If this is not the case the pay-per-use pricing will take
into account the volatility of usage and no TCO savings will be reached. Therefore
there is no balance act, but only some calculations required.
More Blogs from The Philter
Stanford's Nick McKeown says SDN won't take hold until networking equipment vendors give up some control
OneAPI may provide developers a reason to build apps and content for networks, not just mobile operating systems
Ericsson CEO Hans Vestberg defends his company's managed services deals and says he'd rather invest in R&D than make expensive acquisitions
Use our message boards to share photos from your Barcelona experience this week
Flash Poll
From The Founder
Ericsson's Hyperscale Datacenter System (HDS) 8000, featuring Intel's Rack Scale Architecture, caused a stir when it was announced at MWC 2015. For more on this revolutionary product, join me on Thursday, April 30 at 12:00 p.m. EST for a Super Webinar event, A New Hardware Paradigm for the Telco Data Center.
Between the CEOs
Ciena CEO: The Web-Scale Revolution

4|28|15   |   10:32   |   (1) comment


Light Reading CEO and founder Steve Saunders goes head-to-head with long-time Ciena CEO Gary Smith to discuss the impact of the web-scale players, the New IP and 'white box' networks.
LRTV Documentaries
Cox Eyes Cloud-Based Home Networks

4|27|15   |   05:30   |   (0) comments


Cox's Jeff Finkelstein explains how moving services to the cloud will let cable deliver services faster and eliminate constant hardware replacements.
LRTV Documentaries
CableLabs' Clarke Updates Cable Virtualization

4|23|15   |   05:41   |   (1) comment


Former BT exec now leading CableLabs' NFV and SDN efforts explains key role of open source and updates efforts to virtualize the home network.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. II

4|23|15   |   08:19   |   (1) comment


In the second installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about cultural change, network slicing and technology advances.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. I

4|23|15   |   09:27   |   (3) comments


In the first installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about the incredible transformation underway in the communications networking industry.
LRTV Documentaries
LTE Paves the Way for the 5G Revolution

4|20|15   |   4:20   |   (0) comments


Håkan Andersson, head of 5G product strategy of the Radio Business Unit at Ericsson, discusses the role of LTE, the US and other industry verticals in building a true 5G ecosystem.
LRTV Documentaries
The 3GPP's Road to 5G Standardization

4|17|15   |   4:43   |   (0) comments


Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
LRTV Documentaries
AlcaLu CTO Makes the Case for a New 5G Air Interface

4|16|15   |   3:54   |   (0) comments


Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
LRTV Documentaries
AlcaLu + Nokia: The New Uber-Vendor

4|15|15   |   2:42   |   (4) comments


Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
LRTV Huawei Video Resource Center
Huawei's Data Center Power Play

4|15|15   |   6:22   |   (0) comments


Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
LRTV Huawei Video Resource Center
Huawei’s Routers, Switches Get the Green Mark

4|15|15   |   2:02   |   (0) comments


TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
LRTV Documentaries
A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

4|15|15   |   3:17   |   (0) comments


Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
Upcoming Live Events
May 6, 2015, Georgia World Congress, Atlanta, GA
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
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
In its latest survey covering network operators' plans and strategies for ICT transformation, Heavy Reading asked telecom operators worldwide to identify the most important goals and objectives for their ICT transformation initiatives. Heavy Reading also asked operators about the importance of a "digital first" strategy, which enables customers to complete an interaction across different digital channels, such as web and mobile self-service and social media.
Hot Topics
Comcast Formally Ends Its Bid for TWC
Mari Silbey, Independent Technology Editor, 4/24/2015
Comcast Reportedly Dropping $45B TWC Bid
Sarah Thomas, Editorial Operations Director, 4/23/2015
Adtran Is Developing White Box GPON Tech
Ray Le Maistre, Editor-in-chief, 4/24/2015
Google's WiFi-First Mobile Service 'Fi' Is Here
Dan Jones, Mobile Editor, 4/22/2015
Amazon Earnings: What to Watch For
Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/23/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO and founder Steve Saunders goes head-to-head with long-time Ciena CEO Gary Smith to discuss the impact of the web-scale players, the New IP and 'white box' networks.
Many leading communications companies can claim to have undergone significant periods of reinvention during their histories, but none have been through more major ...