Skip to main content

Network Virtualization will Advance the Telecom Sector

As new technologies continue to evolve, open network virtualization strategies are reshaping the telecom carrier ecosystem. The ongoing shift to cloud services and mobile internet technologies is driving service providers and their suppliers to improve their efficiency and agility.

According to the latest market study by International Data Corporation (IDC), network virtualization is set to revolutionize the telecom sector -- transforming the operational culture, as well as the fabric of legacy proprietary infrastructures that have, until now, dominated this industry.

Communication service providers (CSPs) and their vendors are embracing the demand for progressive network virtualization platforms -- such as open-source software-defined networking (SDN) and network functions virtualization (NFV).

"Despite budget concerns and questions about the ability to execute on the network virtualization vision, CSPs, telecom vendors, and partners are all embracing potential opportunities," said Elisabeth Rainge, research vice president at IDC.

IDC believes that network virtualization for telecom represents some significant challenges, but the upside is extremely high. Moreover, while not everyone will reap the benefits of this transformation, IDC sees an evolution of digital infrastructure that is already underway.

During the first half of 2014, a series of announcements provided concrete evidence of the maturity of network virtualization. Because ongoing discussions emphasize the long-term visions for various new technologies, and the larger concept of network virtualization, a clear picture of the activities can be somewhat difficult to discern.

Meanwhile, vendors will resort to network function virtualization and software-defined network architecture to catalyze use cases -- such as the voice over LTE (VoLTE) network evolution.

However, with the talk of moving away from a five-nines 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.

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.

IDC says that 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 virtualized telecom services -- beginning in late 2014.

Popular posts from this blog

The Marketer's Guide to GenAI Transformation

Enterprise marketing faces a critical turning point in 2024, mirroring the shift from traditional outsourced media buying to digital marketing practitioners. A rapidly changing landscape of technological advancements demands a similar leap forward. Just as digital disrupted legacy media strategies, these trends render current enterprise marketing methods inadequate. Embracing a data-driven, agile, and purpose-driven approach isn't a suggestion, it's the imperative for survival and success in today's dynamic market. Applying generative artificial intelligence ( GenAI ) to a range of enterprise marketing tasks will result in a significant productivity increase by 2029, according to the latest worldwide market study by International Data Corporation (IDC). Marketing GenAI Apps Market Development "In the next five years, GenAI will advance to the point where it will handle more than 40% of the work of specific marketing roles," said Gerry Murray, research director at