Download the ACG Research: The Business Value of Agility white paper.
Communication service providers (CSPs) can increase their competitiveness in two ways: lower costs as they seek bottom-line growth and increase their revenue streams as the achieve top-line growth. Network function virtualization (NFV) and software-defined networking (SDN) lets CSPs use both methods. CSPs need to become agile by migrating to an SDN/NFV-based network infrastructure, automating operations, and adopting a new cloud reality—much-needed attributes for success in today’s market reality.
Many CSPs are taking advantage of the new capabilities that are inherent in a cloud-based infrastructure and operations to transform to digital service providers (DSPs). To reach this objective, they need to migrate from their existing purpose-built network infrastructure to a virtualized, programmable, highly automated equivalent. The process amounts to a fundamental change in a company’s overall operation, culture, and processes. The benefits of this journey include lowering the cost structure of business, increasing revenue streams from diversified digital service offerings, and the ability to offer excellent service experience to their customers.
Lowering the network infrastructure’s total cost of ownership (TCO) is naturally a major goal, but it is the revenue side of the ledger that could have a major impact in contributing to a CSP’s key performance indicators (KPIs). A key element that contributes to revenue growth is agility.
Agility has four basic principles: customer agility, business agility, infrastructure agility, and service agility. Combined, these four market-defined principles enable CSPs to lower the cost of operations and increase revenue. This paper focuses on service agility, which requires infrastructure agility, and aims to define and quantify their combined impact on CSPs’ KPIs.
The paper includes comparisons in service-deployment time frames and revenue levels between an agile operator that is using a virtualized network infrastructure and an operator that is using a traditional network infrastructure. In virtualized network infrastructures, the role of the operations support system (OSS) becomes invaluable in achieving service agility.
As CSPs evolve into DSPs, they need the right tools to achieve service agility. A first step for this transition is the transformation of the infrastructure to be a programmable entity using technologies like SDN/NFV and cloud. Because the CSP will be operating both types (traditional and virtualized) of infrastructures for the next few years, the optimal tool enables service agility for a hybrid network infrastructure. A modernized OSS is one such tool. An example of such a tool that offers agility for both types of networks is HPE’s Service Director, which can reduce the time for service onboarding from months to weeks.
Read the ACG Research: The Business Value of Agility white paper.