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NFV Offers Potential for Carriers Looking to Profit from the Cloud

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NFV Offers Potential for Carriers Looking to Profit from the Cloud

December 23, 2015

  By Susan J. Campbell, TMCnet Contributing Editor

It’s the end of the year and one of the most popular areas for focus in IT is trends for the coming year. While some believe there is much more to see in the cloud, others are touting the potential of new services to support WebRTC in the mainstream. Still others are looking forward to more infotainment, and companies throughout a number of industries are vying for that groundbreaking idea. The master agent is generally ready to assist, bringing the right solutions to the forefront.

Tech Target (News - Alert) recently published a piece on 2016 telecom trends, focusing exclusively on NFV and the carrier cloud. Service-building will strengthen in the New Year as three models have been proven and validated: software-defined networking, the cloud and network functions virtualization (NFV). What hasn’t happened just yet is complete validation at the business level for each one.

That stated, the master agent has definitely benefited from advancements in these areas, including mainstream adoption of cloud services. Google (News - Alert) and Amazon have certainly proven the validity of cloud computing and the strategic interests for Tier-1 and Tier-2 operators between 2010 and 2013 centered on carrier cloud services. Even with innovative help from Cisco’s (News - Alert) Intercloud, operators still experience difficulties in realizing opportunities in the cloud.

According to CIMI Corp. President Tom Nolle, 2016 will be a year of decisions. Operators will have to either invest fully in the cloud or scale back their expectations as to its role in future sources of revenue. The challenge for the operators is that the cloud services market is already highly competitive and the dominating players are quite good at developing and marketing solutions. Operators have little experience in marketing or selling cloud operations or technical support, making it much more difficult to be profitable in this area.

That doesn’t mean there isn’t hope, however. For those operators who are serious about making their mark in this space, carrier cloud plans could be greatly impacted by the development of NFV. When NFV is deployed to its full potential, it could create the largest single driver of new data center deployments, providing operators with access to considerable economies of scale. The tools and skills used in this area would directly impact the reduction in cloud OPEX (News - Alert) and improve overall cloud service agility.

Using this technology, operators would have access to lower total cost of ownership for the cloud infrastructure, improved resiliency, better speed for new services introduced into the market and better partners seeking to offer software as a service. The challenge in making this a reality in 2016 is transitioning from proof-of-concept trials to successful deployments. But, those willing to take the risk with the right master agent and partners at the ready are likely to make waves and create new revenue opportunities. It will be an exciting movement to watch next year. 

Edited by Rory J. Thompson
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