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Thursday 19 December 2013

Virtualization Impact on Enterprise Networks and Cloud Infrastructure

Virtualization represents a game-changer in IT infrastructure planning, operations, and management as major components (servers, desktops, storage and even entire data centers) are virtualized. The recent trend is for virtualization of key network components (routers, switches, dedicated servers, etc.), which is referred to in the industry as Network Function Virtualization (NFV).

NFV completely changes the way network architecture is viewed as fixed network elements, consisting of hardware components that are diverse in their make and configuration, is no more the design that is the norm. NFV allows an operator to optimize its infrastructure and increase service agility, representing a solution to problems that have plagued them for quite some time. NFV allows quicker time-to-market for new services because virtualized functions allow operators to introduce new services much faster and at much lower cost.


NFV represents a technical approach and solution set that helps enterprise companies optimize their operation in the face of rising hardware costs, manpower costs and stringent IT budgets. This report provides comprehensive analysis of NFV and its relationship and importance to enterprise IT management, network equipment, and communications.

This report includes a working model Total Cost of Ownership (TCO) to determine the business case for an organization to move to NFV. Unlike a static business case, a TCO model takes into consideration, feature/functionality deployment with respect to both time and geography dimensions.

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Target Audience:

Cloud service providers 
Enterprise companies of all types 
Telecom and enterprise API providers 
Communications infrastructure providers 
Enterprise networking equipment providers

Related Reports -

Virtualization in Cloud Computing, Network Infrastructure, Software Services and Platform Services

Various technologies are involved in virtualization including those that allow for interface between platforms over an Application Programming Interface (API). One such API and technology is Software Defined Networking (SDN) which allows network administrators to manage network services through abstraction of lower level functionality.

Network Functions Virtualization (NFV) is an industry-wide initiative that has captured the imagination and commitment of the telecommunications industry in the past year. The business motivation for NFV is largely reduction in capital expenditures (CapEx), operational expenses (OpEx), and improvement in service velocity and the potential to improve customer experience.


The Network Functions Virtualization (NFV) Market: Business Case, Market Analysis & Forecasts 2014 - 2019

Network Functions Virtualization (NFV) is a telecom led initiative that aims to utilize standard IT virtualization technology to consolidate many telco network equipment types onto industry standard high volume servers, switches and storage. NFV involves implementing network functions in software that can run on a range of industry standard server hardware, and that can be moved to, or instantiated in, various locations in the network as required, without the need to install new proprietary equipment.

With a promise to drive significant CapEx and OpEx reductions, NFV is poised to transform the entire telco infrastructure ecosystem. Mind Commerce estimates that global spending on NFV solutions will grow at a CAGR of 46% between 2014 and 2019. NFV revenues will reach $1.3 Billion by the end of 2019.


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