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The NFV/SDN business cases: prioritise vCPE-enabled services and VoLTE/vIMS; then video and IoT services

The NFV/SDN business cases: prioritise vCPE-enabled services and VoLTE/vIMS; then video and IoT services

NFV and SDN technologies are maturing, but their business value is not well-quantified or understood by the industry. This report analyses the business case benefits for network function virtualisation (NFV) and software-defined networking (SDN) that can be achieved through a services-based approach, rather than a virtual network function (VNF) approach.


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Executive Summary
Executive Summary
CSPs are still uncertain of the minimum NFV/SDN investment required for positive business benefit, which is slowing spend in the market
We have developed several detailed 5-year business cases for vCPE and vIMS use cases using a services-based perspective
Recommendations
vCPE BUSINESS CASES: FOR ENTERPRISE AND RESIDENTIAL SERVICES USING vCPE AND SDN
The vCPE business cases are based on migration models that assess the benefits of using NFV/SDN in enterprise and residential services delivery
The enterprise vCPE business case is driven by increased revenue from upsell/cross-sell of new and existing NFV- and SDN-enabled services
NFV- and SDN-enabled OSS automation supports customer self-service, helping CSPs to generate new revenue from enterprise vCPE services
Breakdown of the main benefits that can be achieved by using vCPE for enterprise-managed network services
Residential vCPE -enabled services address competitive pricing threats with cost savings, which can also drive initial digital home investments
Residential vCPE -enabled services require core investment to reduce the overall cost per household by 82%, mainly in CPE supply management
Breakdown of the main benefits that can be achieved using vCPE for residential consumer services
CSPs that are first to market will have the strongest business case, provided they reach a critical mass of migrated customers
vIMS BUSINESS CASE: FOR VoLTE
Our vIMS cost model is built on our VoLTE business case in order to assess vIMS cost savings, compared with a physical IMS for VoLTE
CSPs can achieve 33% net savings by implementing a vIMS for VoLTE , 45 % net capex saving and 10% net opex savings
Breakdown of the cost benefits of using vIMS for delivering VoLTE
Breakdown of the opex savings benefits of using vIMS for delivering VoLTE services
The VoLTE business case is bolstered by vIMS cost savings, but its viability still depends on spectrum benefits and the volume of VoLTE subscribers
NEXT BUSINESS CASES: VIDEO AND IoT SERVICES USING vCDN AND vEPC
For successful NFV and SDN business cases, CSPs must take a services-based use case perspective, rather than a VNF use case viewpoint
We believe the next two NFV and SDN business cases will be driven by video services for vCDN and vEPC, and IoT and M2M services for vEPC
Appendix
ABOUT THE AUTHORS AND ANALYSYS MASON

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