Network virtualisation strategies are reshaping the telecommunications industry as cloud, mobile, social, big data and analytics technologies drive communication service providers (CSPs) and their suppliers to accelerate their efficiencies and agility.IT industry approaches and technologies such as virtualisation, balanced with telecom industry business considerations are coming to the forefront of telecom industry dynamics.
According to new research from International Data Corporation (IDC), network virtualisation is set to revolutionise the telecom industry as it transforms the culture and operational infrastructure, as well as the fabric of legacy proprietary infrastructures that have, until now, dominated the space.
Communication service providers and their suppliers are embracing the promise and opportunities related to network virtualisation approaches, such as software-defined networks (SDNs) and network functions virtualisation (NFV).
“Despite budget concerns and questions about the ability to execute on the network virtualisation vision, CSPs, telecom vendors, and partners are all embracing potential opportunities,” says Elisabeth Rainge, research vice-president, Communications Service Provider Operations.
“Network virtualisation for telecom represents some significant challenges, but the upside is extremely high. And, while not everyone will reap the benefits of this profound sea change (such as entrenched telecom equipment manufacturers), IDC sees an evolution of infrastructure that is already underway.”
During the first half of 2014, a series of CSP and supplier announcements were made that provide concrete evidence of the maturity of CSP network virtualisation.
Because on-going discussions emphasise the long-term visions for network functions virtualisation, software-defined network, cloud, related IT technologies, and larger concepts of network virtualisation, a clear picture of the status of CSP activities and potential activities can be challenging to discern.
IDC’s research in network virtualisation will continue to examine and analyse progress towards network virtualisation throughout the IT and communications ecosystem.
“Vendors will resort to network function virtualisation and software-defined network architecture to catalyse use cases such as the voice over LTE (VoLTE) network evolution. However, with the talk of moving away from a 5-9s model in the name of service agility and flexibility, it remains to be seen whether and how NFV and SDN can ensure faster deployment while maintaining high standards of quality of experience (QoE),” says Sathya Atreyam, research manager, Wireless Network Infrastructure.
“Many existing CSP network elements, such as service provider routers, Ethernet switches, and packet optical switches, will transition over the next few years to become software-enabled and programmable with open, northbound interfaces,” says Nav Chander, research manager, Wireline Network Infrastructure.
“Many networking vendors are already delivering their first generation NFV-based Virtual CPE solutions, and a number of leading CSPs will begin to launch commercial virtualised telecom services beginning in late 2014.”
Two new IDC reports, The Network Virtualisation Evolution in Telecom (IDC #248827) and Status of CSP Network Virtualisation, 1H14 (IDC #249293), identify some of the fundamental changes and progress that telecom network virtualisation is and will bring to technology architectures, organisational structures, vendor relationships, and services consumed by communications service providers.
The Network Virtualisation Evolution in Telecom sets the scene for a number of future reports on different aspects of network virtualisation that IDC will publish in 2014 and 2015.
