1. Market Research
  2. > IT Services
  3. > Hosting Market Trends

The Virtual Future and its Relationship with OSS BSS

  • February 2014
  • 19 pages
  • Frost & Sullivan
Report ID: 2015958

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
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

Amrita helps you find the right report:

Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

Purchase Reports From Reputable Market Research Publishers

Software-Defined Networking and Network Function Virtualization Market by Component, Physical Appliances, and Service, End-User, and Region - Global forecast to 2022

  • $ 7150
  • Industry report
  • August 2017
  • by MarketsandMarkets

The Software-Defined Networking (SDN) and Network Functions Virtualization (NFV) market is expected to grow at a CAGR of 71.4% during the forecast period The market for SDN and NFV is expected to grow ...

Virtualisation in telco networks - Which markets for SDN and NFV

  • $ 4600
  • Industry report
  • September 2017
  • by IDATE

This report provides a state of the art review of the real benefits and various implementations of SDN and NFV concepts within telco network infrastructures. It describes how the two concepts will be ...

Renaming NFV will not hasten cloud-native deployment: instead, vendors must address its technical challenges

  • $ 499
  • Industry report
  • June 2017
  • by Analysys Mason

"Operators must understand the difference between virtualising network functions and running them in the cloud." Renaming NFV will not hasten cloud-native deployment: instead, vendors must address its ...


ref:plp2014

Reportlinker.com © Copyright 2017. All rights reserved.

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