Network operators and cloud providers want to move to an NFV architecture so that they can deploy new services using VNFs. This means building a business case that they can accelerate revenue while reducing costs associated with service deployment and operations.
Making the move to an NFV architecture is a huge shift. It’s a complete change from how services have been deployed for decades, whereby proprietary systems were installed for each service rollout (for example, DSL and mobile services were each built with new hardware architectures). Operators worldwide are currently evaluating the Return on Investment (ROI) for NFV. The goal is a reduction in expenditures (both capex and opex) and by new revenue generated by NFV-related services.
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 Business Case for VNFs
In order to determine the business case for NFV, organizations will likely be looking closely at which VNFs they would be likely to deploy, and how this would alter their business.
Here are some of the potential benefits of deploying VNFs:
Reduce capital expenditures for new VNF deployments: