Network Functions Virtualization is Changing How Services are Delivered

As Service Providers are faced with increased competition from Over the Top Providers they are seeking new markets to enter. However, as they look to create and launch new services they must grapple with the growing number and complexity of hardware devices in their networks. This creates challenges due to the time it takes to certify equipment and with staffing and training of skilled operators for many devices. It also creates cost pressure with the need for more space and power at a time when these resources are becoming ever more expensive. Making upfront capital outlays for equipment in anticipation of revenue that ramps up over time can stress budgets. As a result Service Providers are looking to change how network services are deployed and some are finding Network Functions Virtualization (NFV) as the answer to their problems.

Defining Network Functions Virtualization Services
Network Functions Virtualization is transforming how network operators architect networks by enabling the consolidation of network services onto industry standard servers, which can be located in Data Centers, on Network Nodes or at the user premises. NFV involves delivering network functions as software that can run as virtualized instances and that can be deployed at locations in the network as required, without the need to install equipment for each new service. Network Functions Virtualization is applicable to any network function in both mobile and fixed networks. Network Functions Virtualization is complementary to Software Defined Networking (SDN) but not dependant on it. Virtual appliances might be configured using SDN capabilities and they might be connected via overlay network tunnels in clusters based on an application or based on the needs of an organization.