1. Market Research
  2. > IT Services
  3. > Hosting Market Trends
  4. > The Virtual Future and its Relationship with OSS BSS

The Virtual Future and its Relationship with OSS BSS

  • February 2014
  • -
  • Frost & Sullivan
  • -
  • 19 pages

Summary

Table of Contents

This report provides a conceptual definition for both NFV and SDN. The report analyzes the operations and business management impacts of these technologies; and explains why the operations and monetization functions should be addressed sooner rather than later, as the virtual network takes shape. The report concludes with our analysis of the key reasons driving CSPs to pursue a virtual network transformation.

Introduction

In a mid-year 2013 network operator global survey, Stratecast found that nearly all communications service providers (CSPs) are engaged in furthering two network technology transformational changes that look to help them meet several industry challenges and business expansion opportunities. These endeavors are Network Function Virtualization (NFV) and Software Defined Networking (SDN). Both promise enticing benefits while posing risky and considerable challenges. Stratecast believes that each is worth the risk and effort in order for CSPs to attain the flexibility and programmability within their networks to be competitive with Internet companies that presently occupy a major portion of all broadband user attention, such as Amazon, Google, Microsoft and Netflix.

Although it is somewhat premature to be concerned about how these initiatives will coexist and integrate from an architectural perspective, Stratecast believes that the complementary nature of NFV and SDN will, one day, use components of both to establish a new, unified, “next generation,” virtual network architecture. As such, we use the term “virtual network” throughout this document to refer to the combined technology architecture obtainable by NFV and SDN, while conceding that the final architectural framework is still in a state of flux. For example, the separation of the control plane and data forwarding plane at the heart of SDN can make it easier to virtualize some network elements. Similarly, NFV enables consolidation by replacing the multitudes of proprietary network elements that compose a network today, with software-controlled commodity hardware. While SDN aides the process of separating the network control plane from the data plane, NFV gives these planes a commodity platform on which to operate. So, it is important for CSPs to strategically consider SDN and NFV together; and never too early to consider their combined impact on business management and the operations processes.

This report provides a conceptual definition for both NFV and SDN. The report analyzes the operations and business management impacts of these technologies; and explains why the operations and monetization functions should be addressed sooner rather than later, as the virtual network takes shape. The report concludes with our analysis of the key reasons driving CSPs to pursue a virtual network transformation.

2014: The Year for Business Challenge and Opportunity

The CSP marketplace, until just a few years ago, was relatively stable in the way it approached business for all walks of customers; be they consumers, small and midsized businesses, or enterprises. The historical business model is about selling a network connection, which has remained the primary way CSPs have done business for over a hundred years.

For the CSP global community, 2014 promises to be a year of business challenge and opportunity on several fronts. There are at least key business drivers that continue to push the end-to-end communications marketplace to be something different than what it was in the past. The most noteworthy of these are:
• Network Technology Advances and User Device Evolution – Mobile operator attention to the transition from 3G networks to 4G LTE, combined with customer appetite for improved performance and capabilities offered through advances in smartphone and tablet technology, is improving the digital lifestyle for many consumer and business customers.
• Cost Improvement Pressures – Financial pressure to be more cost effective in the delivery of network access services is a growing concern for CIO and CTO executives at CSPs, in all parts of the world, including mature markets as well as growth areas.
• Data Usage Volumes – Network data usage volumes continue their exponential expansion, especially as mobile technologies improve the ability for customers to consume data content. This is compounded as competitive pressures mount to provide improvements in mobile data pricing plans and service offers.
• Advancing Business Strategies of Enterprises – Every industry continues to find ways to incorporate mobile connectivity into the goods and services it provides, as a way to deliver a better experience for its customers. Mobility services are becoming especially important within the transportation logistics, eHealth, telematics, and financial services markets.
• Competitive Forces – Competitive forces are causing CSPs and cloud services providers to address enterprise customer needs through negotiated pricing offers and contract-based monetization strategies that tie partner compensation with service consumption. Most legacy rating & charging and partner management systems are not equipped to address these needs.
• Device and Data Security – Heightened focus on mobile device security and increased sensitivity to the use of mobile devices for mCommerce now garner the attention of criminals, cybersecurity analysts, service providers, credit card companies, financial organizations, and business solution suppliers.
• Changing Business Models – Changing ways to do business, including a focus on machine-to-machine (M2M), business-to-business (B2B), and multi-partner value chains, now drive CSPs to seek new systems and new business processes to accommodate these [...]


Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 60 Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
Get This Report
24/7 Customer Support

Talk to Ahmad

+1 718 618 4302

Purchase Reports From Reputable Market Research Publishers
Top 10 SDx and Networking Technologies

Top 10 SDx and Networking Technologies

  • $ 5650
  • Industry report
  • February 2017
  • by MarketsandMarkets

“The increasing need for simplified network architecture and enhanced security is expected to drive the growth of the software-defined everything and networking technologies” The top 10 Software-Defined ...

Network-as-a-Service Market by Component, Application, Network Function Virtualization, V-CPE, Integrated Network Security as a Services, Type, Vertical, and Region - Global Forecast to 2021

Network-as-a-Service Market by Component, Application, Network Function Virtualization, V-CPE, Integrated Network Security as a Services, Type, Vertical, and Region - Global Forecast to 2021

  • $ 5650
  • Industry report
  • February 2017
  • by MarketsandMarkets

“Infrastructure component adoption to play a significant role in augmenting the growth prospects in the Network-as-a-Service (NAAS) market” This study has been done on a global level, covering fou ...

EMEA NFV Forecast 2015-2020

EMEA NFV Forecast 2015-2020

  • $ 3960
  • Industry report
  • January 2017
  • by IDC

This IDC study contains 2014-2015 EMEA NFV market size data and presents the latest 2016-2020 revenue forecast across all three major NFV segments. Forecasts for end-user revenue in the overall EMEA market ...


Download Unlimited Documents from Trusted Public Sources

Related Market Segments :

NFV
SDN

ref:plp2014

Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.