NFV Series: Network Function Virtualisation, maximising your potential

The obvious advantages of an NFV network architecture are reduced capital expenditure (CAPEX) and operating expenditure (OPEX). Whereas the old paradigm required bespoke hardware devices for each network function – hardware devices that quickly became obsolete as average hardware capabilities surpassed them – NFV allows network functions to be virtualised and run on commercial off the shelf (COTS) servers. With many functions consolidated into fewer hardware devices, fewer updates to hardware are required. Before NFV an operator may have needed to update their firewall appliance, then update their load balancer, then their policy look-up device. With these functions virtualised and carried out by a single server what would have been three capital outlays is reduced to just one. Further, operating a single device that has the functionality of three means reduced OPEX. These OPEX benefits can be compounded further by taking advantage of server workload consolidation and power management features; for example by turning off unused servers during off-peak hours.

Introducing a new service within the old network architecture paradigm required large investments of time and money to develop tailor-made hardware devices capable of providing the new service. An NFV environment, in contrast, enables software-based development which requires significantly fewer resources to bring the service to market. The reduced Time to Market (TTM) of new services that NFV affords operators is a considerable advantage as it allows operators to quickly adapt to changes in the market or attract new customers by being the first to offer a new product or service. Innovative new features can also be trialled with less risk as the need to recover investments by achieving large economies of scale is minimised due to reduced development costs.

As networks become increasingly virtualised we can expect the range and quality of products and services offered by network operators to improve dramatically as operators are able to leverage NFV architecture to bring new features quickly and inexpensively to their subscribers. Further, lower barriers to entry afforded by increased openness means development of these new services can be carried out by a broader range of organisations, increasing development rates further. These benefits, combined with potential reductions in CAPEX and OPEX that can be passed on to subscribers or used to improve service, mean it will be increasingly difficult for operators of non-virtualised networks to stay ahead of the competition.

If you’re interested in adopting an NFV network architecture to reduce CAPEX and OPEX whilst improving the potential for development of new services why not contact us to find out more?