Cloud Strategies

SlideshowEricsson CTO: Carriers Moving Too Slowly on Virtualization

Ulf's New World Order (With Car)
Ulf Ewaldsson interrupted his career as a new age abstract expressionist to become CTO of Ericsson.
Ulf Ewaldsson interrupted his career as a new age abstract expressionist to become CTO of Ericsson.

kq4ym 9/28/2015 | 12:19:54 PM
Re: How fast is too slow? Very interesting how "...These are big companies, with too much job protection," can ultimately slow down the NFV journey and with the possibility of hampering the industry in what might be very significant ways. And not to mention how those carriers may well suffer big consequences down the road as well.
Johny123456789 9/23/2015 | 7:28:30 AM
Re: How fast is too slow? Agreed and I would say that the further we go with data center capacity the faster it'll goes with new techno 
Steve Saunders 9/16/2015 | 3:56:11 AM
Re: The root cause Tier-1 operators or ICT vendors? Mohammad, very interesting and thanks for sharing
[email protected] 9/16/2015 | 2:58:20 AM
The root cause Tier-1 operators or ICT vendors? Accordin to Ericsson CTO, Evaldsson:

"...The communications industry abhors an innovation vacuum and, according to Ewaldsson, the risk is that if Tier 1 Carriers don't deploy virtualization in their data centers soon, the enterprise cloud players will sweep in and expand their existing services into what has traditionally been a Tier 1-only space. That could leave Tier 1s playing in the access network, only -- not a good look for them, or their shareholders, at all....."


I do not believe that anyone can find any operator in Tier one group who are not aware of Virtualization and by the way even automatization of their datacenters. This has been a trend the last 5-6 years within the IT and Telecom. In my understanding the necessity of virtualization could be divide in two categories

1-Virtualization of the servers with "hard tie" to the Telecom functions

In the first category it is the Telecom vendors and it's partners which almost define weather virtualization is possible or not. E.g. Ericsson and it's business partners providing a certain XG mobile functions to a tier one operators. But the delivered functions, licensing model, or HW does not really support the virtualization. There is also another complexity and it is the Multi vendor environment and existing infrastructure supporting the new or older technologies.


2-Virtualization with looser "tie" to the telecom functions

Many operators made a lot of long term and expensive investments in supporting functions for their telecom business. As far as I can see many of these solutions are more or less tailor made due to the complexity of the requirement, business and existing and chosen technology e.g. HW and/or SW from Oracle, IBM, Amdoc, SAP, SAP Hana, Etc.


The problem

In other words the telecom operators which did not made enough effort to virtualize their "datacenter" have in fact stocked with lack of support of virtualization from the Telecom vendors and their business partners or lack virtualization from their IT vendors. The problem owners are the operators but the problem is not necessarily caused by the same.
Steve Saunders 9/15/2015 | 4:35:07 PM
Re: How fast is too slow? Depends what functions we are talking about. If we're taking about virtualization a full telco data center, no, no ones doing that yet. There's lots of virtualization in regular data centers but that's not as challenging.
msilbey 9/15/2015 | 3:32:25 PM
Re: How fast is too slow? I didn't realize most of the data center functions hadn't been virtualized yet by the carriers. Doesn't that put them behind the enterprise sector, or am I missing something here?
[email protected] 9/15/2015 | 9:48:47 AM
Re: How fast is too slow? It is an interesting proposition from Ewaldsson -- and let's not forget that all vendors always want operators to move faster and, well, buy mores stuff (kit, services, software).

Of course, if the vendors believe that they might lose a large part of their business because telcos go out of business or become so marginalized that their operations and networks shrink then that's certainly somethging to get woriied about.

I agree - getting into that middle part would be an M&A move, and that wold be acquisition of real estate. If central offices/local exchanges came up for grabs aI think the bidding would be fierce and valuable.

I know there are people who believe that operators will reach a point of financial distress and that is when Google steps in and buys the assets. That's probably the extreme case but not out of the question.

Of course, if Google did that, it may have to promise certain things to te regulators. 
mendyk 9/15/2015 | 8:33:52 AM
Re: How fast is too slow? Ray -- there's certainly a risk of marginalization for network operators, but really, why would the Web players even want to get into that middle part of the diagram? Maybe through acquisition it makes sense -- Google buys Verizon, or DT, or something like that. That part of the diagram is essential, but I would be very surprised to see any significant overbuilding to displace what's already there, even if it isn't virtualized.
[email protected] 9/15/2015 | 6:32:01 AM
Is that an Ulf original? Can I buy the Ulf original artowork on eBay?

Car manufacturers should be studying that doodle...
[email protected] 9/15/2015 | 6:30:55 AM
How fast is too slow? There's no doubt that some operators appear to be laggards, but even when operators move as fast as their day-to-day operations allow, is that still too slow?

Are they doomed? Is it already too late for many telcos in terms of transforming to survive (and I mean survive rather than thrive)?
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