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Virtualization: Impact on Enterprise Networks and Cloud Infrastructure

Virtualization: Impact on Enterprise Networks and Cloud Infrastructure

Virtualization represents a game-changer in IT infrastructure planning, operations, and management as major components (servers, desktops, storage and even entire data centers) are virtualized. The recent trend is for virtualization of key network components (routers, switches, dedicated servers, etc.), which is referred to in the industry as Network Function Virtualization (NFV).

NFV completely changes the way network architecture is viewed as fixed network elements, consisting of hardware components that are diverse in their make and configuration, is no more the design that is the norm. NFV allows an operator to optimize its infrastructure and increase service agility, representing a solution to problems that have plagued them for quite some time. NFV allows quicker time-to-market for new services because virtualized functions allow operators to introduce new services much faster and at much lower cost.

NFV represents a technical approach and solution set that helps enterprise companies optimize their operation in the face of rising hardware costs, manpower costs and stringent IT budgets. This report provides comprehensive analysis of NFV and its relationship and importance to enterprise IT management, network equipment, and communications.

This report includes a working model Total Cost of Ownership (TCO) to determine the business case for an organization to move to NFV. Unlike a static business case, a TCO model takes into consideration, feature/functionality deployment with respect to both time and geography dimensions.

Target Audience:

  • Cloud service providers
  • Enterprise companies of all types
  • Telecom and enterprise API providers
  • Communications infrastructure providers
  • Enterprise networking equipment providers


General Methodology

Mind Commerce Publishing's research methodology encompasses input from a wide variety of sources.

We rely heavily upon our Subject Matter Experts (SME) in terms of their market knowledge, unique perspective, and vision. We utilize SME industry contacts as well as previous customers and participants in our market surveys and interactive interviews.

In addition, we rely upon our extensive internal database, which contains modeling, qualitative analysis, and quantitative data. We review secondary sources and compare to our primary sources to update previous findings (for prior version reports) and/or compile baseline information for technology and market modeling.

We share preliminary models with industry contacts (select previous clients, experts, and thought leaders) to verify the veracity of initial modeling. Prior to final report production (analysis, findings, and conclusions), we engage in an internal review with internal SMEs as well as cross-expertise, senior staff members to challenge results.

We believe that forecasts should be prepared as part of an integrated process which involves both quantitative as well as qualitative factors. We follow the following 3-step process for forecasting.

Forecasting Methodology

Step 1 - Forecasts Input: The inputs for the present and historical revenues are derived from industry players. Financial and other quantitative data for individual sub-market categories are derived from original research and tested with interviews with major industry constituents.

Step 2 - Forecasting of Future Years: Mind Commerce extends forecasts based on a variety of factors including demand drivers as well as supply side data. Key success factors and assumptions are considered.

Step 3 - Validation of Data: The final step is to validate projections, which is accomplished in consultation with both internal and external industry experts, including both topic and regional experts. Adjustments are made to the forecasts based on factors identified throughout this process.


1. Network Function Virtualization
1.1 Why Nfv Is Inevitable And Impactful
1.2 How Nfv Works
1.3 Overall Benefits Of Nfv
1.1.1 Legacy Hardware Optimization Benefits
1.1.2 Reduced Spending On Hardware Purchase
1.1.3 Energy Consumption Optimization
1.1.4 Network Operational Efficiency
1.1.5 Customer Satisfaction And User Experience Benefits
1.4 The Impact On The Operator And Service Provider Environment
1.5 Implications For The Enterprise
2. Nfv & The Enterprise
2.1 Enterprise Landscape Analysis
2.2 Overall Benefits For Enterprises
2.2.1 Agility
2.2.2 Optimal Service Consumption
2.2.3. Network Security
2.2.4. Business Continuity
2.2.5. Targeted Service Customizability
2.3 Case Studies
3.3.1 Case 1 - Revolutionizing Enterprise Content Delivery
3.3.2 Case 2 – High Definition Video Delivery
2.4 Challenges For Nfv Adoption In Enterprise
3.4.1 Common Management Framework Challenge:
3.4.2 The ‘it Guy’ Challenge
3.4.3 Determining The Business Case
3.4.4 Planning The Migration
3.4.5 Outsource Vs. In-house Challenges
Market Forecasting
Future Trends In Nfv
3.5 A Brief Overview Of Cloudnfv Architecture
3.6 What This Mean For Enterprise
3.7 Sdn + Nfv: A Robust And Lean Network
Virtualization Tco Analysis
3.8 Benefits Of A Tco (Or Life Cycle Cost) Analysis
3.9 Comparing The Traditional Way And The Tco Way
3.9.1 Using Tco Model To Evaluate Nfv Option
3.9.2 The Tco Model Case
3.10 Tco Analysis Working Model
Nfv Vendor Landscape
Appendix
Sdn Vs. Nfv – Q&A
List of Figures
Figure 1: Individual Networking Hardware to Virtual Network Nodes
Figure 2: Server Virtualization vis-à-vis NFV
Figure 3: Network without Virtualization
Figure 4: Network with Virtualization
Figure 5: Reduction of Energy Consumption with NFV
Figure 6: Benefits of NFV for Operators and Service Providers
Figure 7: Traditional Network vs. NFV Powered Network Setup
Figure 8: Benefits of NFV to Enterprises
Figure 9: NFV solves the enterprise content delivery problem
Figure 10: NFV solves the HD Video Delivery Problem
Figure 11: NFV and Video on Demand
Figure 12: NFV Adoption by Enterprise
Figure 13: CloudNFV Challenges
Figure 14: NFV Orchestration Architecture
Figure 15: Architecture and Cloud Flow
Figure 16: SDN and NFV Relationship
Figure 17: Network without SDN and NFV (1)
Figure 18: Network with NFV and SDN (2)
Figure 19: Business Case vs. TCO Modeling
Figure 20: Snapshot of the Excel Model
Figure: 21Comparison of 5 year TCO for CMO and FMO
Figure 22: NFV Offering Attributes
Figure 23 6WINDGate & Blue Planet from CYAN Inc.
Figure 24: The F5 Family of Solutions – BIG IP Product Suite
Figure 25: Rating NFV Vendors – Comparative Matrix
Figure 26: NFV Vendor Measurement Quadrant

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