Network operators, including enterprises and service providers, are looking at NFV investment to build new services they want to deliver with their networks. Part of this involves reducing costs on NFVi and making MANO more agile. To build an NFV business case, operators need evidence that they can accelerate revenue while reducing costs associated with service deployment and operations.
In identifying the business case for NFV, key questions include:
- What are the specific revenue-generating services enabled by NFV?
- Which network elements are good candidates for virtualization?
- How does NFV reduce capital and operating costs?
The NFV Business Case
It’s worth a closer look how service providers make this determination of the business case for NFV and all of the factors involved. In general, NFV promises to enable organizations reduce expenses and potentially accelerate.
Below is full list of the common business justifications for NFV.
Reduce capital expenditures especially in the NFVi:
- The use of commercial off-the-shelf (COTS) hardware and servers reduces hardware costs. A wide variety of providers can offer these servers, increasing the volume and competition in the marketplace and, ultimately, driving down costs.
- By delivering the services in software, organizations are no longer forced to rely on specialized hardware to run network functions. This means the premium that a handful of vendors could charge for their proprietary hardware is no longer applicable or justifiable.
- A single, common server architecture can be used to build in the redundancy and availability organizations require within their data center environment. No longer do organizations need to purchase and maintain expensive equipment to keep as spares; in the event of a failure, the shared virtualized infrastructure can simply move workloads to ensure ongoing capacity and performance.