Virtualized Residential Gateways Yield 40% Savings – AlcaLu

Reducing complexity by pushing functionality to the cloud.

Mitch Wagner, Executive Editor, Light Reading

December 15, 2015

2 Min Read
Virtualized Residential Gateways Yield 40% Savings – AlcaLu

Communications service providers can cut operating costs by up to 40% by virtualizing complex residential gateway functions into the network cloud, according to a study by Alcatel-Lucent's Bell Labs.

Residential gateways are becoming more capable and complex with the increased demands from households accessing cloud applications and bandwidth of 100 Mbit/s or more. Greater complexity leads to greater support challenges and cost, according to the Alcatel-Lucent (NYSE: ALU) Bell Labs study, released Tuesday.

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A virtualized residential gateway (vRGW) moves functions such as IP routing and network address translation (NAT) into the cloud, centralizing management and control and reducing operations costs.

In addition to cutting costs and improving customer experience, a virtualized gateway allows CSPs to introduce new services more rapidly and consistently, driving providers to New IP networks.

A vRGW reduces service fulfillment costs by 7% to 12%, with faster activation of upgrades and new services and fewer home visits by technicians, AlcaLu says. Service assurance costs are reduced 63% to 67%, streamlining response to trouble tickets. And lifecycle management is reduced 66% -- a big savings proportionally although lifecycle management costs are relatively small.

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— Mitch Wagner, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profileFollow me on Facebook, West Coast Bureau Chief, Light Reading. Got a tip about SDN or NFV? Send it to [email protected].

About the Author(s)

Mitch Wagner

Executive Editor, Light Reading

San Diego-based Mitch Wagner is many things. As well as being "our guy" on the West Coast (of the US, not Scotland, or anywhere else with indifferent meteorological conditions), he's a husband (to his wife), dissatisfied Democrat, American (so he could be President some day), nonobservant Jew, and science fiction fan. Not necessarily in that order.

He's also one half of a special duo, along with Minnie, who is the co-habitor of the West Coast Bureau and Light Reading's primary chewer of sticks, though she is not the only one on the team who regularly munches on bark.

Wagner, whose previous positions include Editor-in-Chief at Internet Evolution and Executive Editor at InformationWeek, will be responsible for tracking and reporting on developments in Silicon Valley and other US West Coast hotspots of communications technology innovation.

Beats: Software-defined networking (SDN), network functions virtualization (NFV), IP networking, and colored foods (such as 'green rice').

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