NFV Economics and Business Case Discussion at Software Telco Congress.


“As network hardware begins to be replaced by software, carriers are expected to save money and benefit greatly from new levels of flexibility related to hosting their network in private and virtual private clouds. Similarly, SDN is an architecture that separates the control and data planes of the network and automatically looks at flows in the network, understanding the requirements of those different flows and using the network to provide those flows with the appropriate bandwidth and other network resources.”

“This applications-first networking mindset is a significant change from how networks are designed and work today. It takes the traditional siloed approach to networking and effectively lays it on its side. This move to software-based telco environments will not only help incumbent providers become more agile and adapt to market trends and subscriber demands more effectively, but will open up the market to new players who may not have had such deep pockets needed to develop proprietary hardware. It will allow new carriers to quickly scale and compete, as they won’t have to load up on costly central office equipment to get started.”

Software Telco Congress – The NFV and SDN Event.

This time last week I was in Las Vegas participating in the Software Telco Congress 2014. I would like to thank those of you attending my live talk and was really glad to benefit from a full house. I would also like to thank Frost & Sullivan’s Ronald Gruia for his encouraging feedback and positive public remarks from the podium as well as our follow up conversations over social media. I am now taking care of incoming requests for a copy of the presentation.

I just uploaded the my file: Slideshare reports 110+ views from the get go, coupled with 1,500+ views for my set of presentations on NFV (Network Functions Virtualization).  A quick web search for “NFV Economics” is listing these slides’ link among the top 10 results already. Additionally, it is worth noticing that only two other items on that list, such as Prof. Economides’ video clip and slides, happen to fully focus on this one specific topic. See his video clip below.

Moreover, this blog,, is now showing among the top 20 search results when looking for “NFV Business Case” instead. Given that NFV is an emerging and highly specialized niche market, these few metrics happen to be interesting enough at the time of writing this. Thanks again for your interest in my writings.

TMC’s (Technology Marketing Corporation) crafted a robust event agenda packed with relevant and timely topics delivered by engaging speakers with compelling insights, which I was flattered to be with. I am grateful to Alcatel-Lucent’s Darlene M. Cetrulo for all of her support and CloudBand Consulting’s Joaquin de la Vega Gonzalez-Sicilia and Andras Menyhei for the materials covering DNS’ business case. Last but not least, I appreciate TMC’s Erik K. Linask, Group Editorial Director, communications in advance to this event, as well as Peter Bernstein, Senior Editor, who moderated the panel on “Making the Transition to Software.”        


By the way, here is Prof. Nicholas Economides’ video where he briefly discusses NFV and SDN economics in a 15 minute clip. This recording highlights flexibility and OPEX (Operational Expenses) savings to begin with. Additionally, a software centric approach should foster more innovation and higher sophistication given the right APIs, interoperability, ease of upgrade and graceful scalability in place. On the hardware side, Prof Economides outlines CAPEX (Capital Expenditure) savings driven by COTS (Commercial Off The Shelf) gear, coupled with application multi-tenancy and, possibly, shared resources by network operators and service providers.

Around minute 10, he presents results from a preliminary analysis pointing to 30-70% cumulative savings when compared to today’s system costs which, give or take, happens to be the ball park (49-70%) shown by the DNS’s figures disclosed in my presentation. In any case, we are taking about quite significant double digit savings from the offset.  


From left to right:

  • Upper row: Software Telco Congress breakout room entrance, ITExpo plenary session, exhibit hall.
  • Lower row: Opendaylight’s Neela Jaques, Qualisystem’s  Alex Henthorn-Iwane, Alcatel-Lucent’s Jose de Francisco, Brocade’s Andrew Coward, Overture’s Mark Durrett, and AT&T’s Michael Troiano.

See these and other event pictures on Flickr and click here to see the complete list of speakers.

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