Skip to main content

OpenStack Gains Momentum within the Telecom Sector

Informed telecommunications service providers have reduced their infrastructure cost and improved their development agility by adopting open source software.  According to findings from a recent survey, 85.8 percent of telecom industry respondents consider OpenStack to be essential or important to their success.

The survey, commissioned by the OpenStack Foundation, explores current usage and adoption plans of telecom service providers -- particularly with respect to Network Functions Virtualization (NFV), 5G cellular communications, Internet of Things (IoT) and enterprise cloud computing.

Facing unprecedented traffic and rapidly evolving customer expectations, telecom providers worldwide are accelerating their adoption of NFV to increase network agility and mitigate costs, and OpenStack has emerged as the NFV infrastructure platform of choice.

OpenStack Market Development Results

The OpenStack survey included 113 responses from representatives of telecom companies around the world: 54 percent from the U.S. market, 14.2 percent from Europe, 11.5 percent from the Asia Pacific region, 8.9 percent each from Central or South America and Canada; and 2.7 percent from the Middle East.

Highly Valued: 85.8 percent consider OpenStack to be essential or important to their success.

Rapid Adoption: Telecoms are already using or currently testing new use cases with OpenStack for:
  • NFV: 60.3 percent using or testing; 37.8 percent considering (total 98.1percent)
  • IoT: 41.3 percent using or testing; 49.5 percent considering (total 90.8 percent)
  • 5G: 30.6 percent using or testing; 49.1 percent considering (total 79.7 percent)

Multiple Benefits: In popularity order, the benefits cited most often are:
  • Offer new services more quickly (This was by far the most-cited benefit, outpacing the next by 24 percent)
  • More rapid virtualization of the data center
  • Reduced operational cost
  • Reduced software cost

Strong Community Engagement: 73.5 percent of respondents are engaged with OpenStack, primarily by contributing to the software, contributing requirements and use cases, and attending OpenStack Summits and OpenStack Days community events. Neutron is the OpenStack project most contributed to, followed closely by Nova.

OpenStack Neutron Plug-in Popularity: The survey revealed that telecoms are using a mix of open source and commercial OpenStack Neutron plug-ins for Software-Defined Networking (SDN) and virtual switching. The variety of plug-ins selected in the survey validate OpenStack's strategy of providing user choice.

Containers on the Rise: 99 percent of respondents are considering containers for both VNFs and business applications. 68.4 percent will definitely use containers for VNFs, and almost all others are considering them (30.6 percent). This is slightly higher than using containers for business apps (63.6 percent definitely or likely, 35.5 percent potentially).

“The flexibility and versatility of OpenStack as a cloud and NFV platform allows telecom companies to combine business and communications IT under a single technology,” said Jonathan Bryce, executive director of the OpenStack Foundation.

Popular posts from this blog

Telecom and Cable Strategic Growth Trends

Telecom and pay TV providers are entering a period where traditional connectivity revenue is growing at well under 2 percent a year worldwide, even as traffic volumes, quality expectations, and competitive pressures continue to rise. This widening gap between flat service revenues and escalating investment needs is the central strategic challenge now confronting network operators, tech vendors, and investors across the communications value chain. This transitional environment forces service providers to pivot from "grow by adding lines" to "grow by monetizing experiences, insights, and ecosystems." Enterprise digital transformation, 5G, fiber, and cloud computing are all necessary enablers, but none of them automatically translate into higher ARPU or margin; they need to be coupled with new value propositions and operating models. Telecom and Cable Market Development According to the latest IDC market study, worldwide spending on telecom and pay TV services is expec...