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brookseven
brookseven
5/30/2013 | 1:17:57 AM
re: One Problem With NFV
I think one needs to think about the quality requirements that the carriers have put in place as well as the vendor size requirements.

Imagine a 10 person SW company providing major infrastructure to a carrier...I think people need to take a deep breath and think this through. In my work in the SaaS space, we ran at a much higher ops cost because of the challenges of smaller vendors. A carrier might be trading Capex for Opex AND if the vendor goes out of business then the carrier is really stuck.

seven
fstein
fstein
5/29/2013 | 11:57:26 PM
re: One Problem With NFV
A few observations about lower price per box / per function.

1) Demand is doubling every year - at about Moore's law. So the systems should match and we're all revenue neutral.

2) NFV is more 'transformation' than 'disruption'. Supporting $100's B's (USD) of IB and physical assets, means evolution. Smart suppliers pick high ROI areas to virtualize.

3) The competition is not so much the other equipment vendor but the Web 2.0, OTT, Cloud, etc... If the 'function' goes outside the Carrier, so does the money.

4) NFV can accelerate innovation to build new services and new monetization models. The Carrier's fiduciary role can be leveraged for new services and partnerships.
afewell
afewell
4/24/2013 | 3:31:56 PM
re: One Problem With NFV
Great post and very true points. One factor in play here is that there are large vendors that are already trusted SP suppliers that are not currently entrenched in L4-7 network services looking to move upmarket that dont have appliance revenue to lose. Whether they build nfv solutions organically or buy startups, there are capable disruptors afoot
joanengebretson
joanengebretson
4/18/2013 | 6:12:52 PM
re: One Problem With NFV
One of the drivers of NFV is to prepare carriers to operate networks that are required to carry higher traffic volumes without raising the price to end users. If networks keep growing at their current pace, we could get to where manufacturers make the same revenues on equipment that cost 30% less because carriers are buying 30% more of that equipment.
Gabriel Brown
Gabriel Brown
4/18/2013 | 9:56:40 AM
re: One Problem With NFV
I agree (I think) in the sense that identifying use-cases and picking off the applications to move forward with, will move the market. M2M, IMS, EPC, etc.

And it will require, as you say,-áthe big vendors to right-size their offers. This could be painful depending on timing, and so on.

There is also concern inside operators about "execution risk". Most of them know they are not sufficiently skilled, at scale, to pull this off across the network right now. Hence their focus on identifying feasible use-cases.

Thanks for the comment.
Connecter
Connecter
4/18/2013 | 7:30:45 AM
re: One Problem With NFV
Good article thanks Gabriel. I do not see a "huge" problem as you suggest. The elephant in the room is the ability for the "big vendors" to right size their offerings to the market. The operator market WILL move because it has to to meet the end user market - the emerging world of m2m and people/app mobility. Quality IT platforms such as IBM, HP, ORACLE will underpin the next gen NFV solutions because THEY will be the new "big vendors" that operators will look to for confidence and risk mitigation.
NFV (if you want any label) is here and real and in 3 years time it will be a very significant part of the operator landscape if for no other reason other than cost efficiency and scalability.


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