A lot of this rise can be attributed to NFV when telecom operators across the world are adopting the technology to gain competitive advantage. NFV will bring a sea change in how the industry works in the coming years along with fetching extra revenue.

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What is NFV & Why is it Significant to the
Networking Industry?

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Introduction
 The telecom industry & its technology is growing fast.
 The wireless telecommunications network will grow to $323 billion between 2014 to 2017, a 25% rise over
the period of 2010 to 2013.
 This rise can be attributed to NFV when telecom operators across the world are adopting the technology to
gain competitive advantage.
 China Telecom Beijing Research Institute and Hewlett Packard Enterprise recently made announcements for
creation of a joint NFV lab together.
 The intention is to migrate from old infrastructure system to upgraded sophisticated system.

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Global Uptake of NFV
 NFV came into being around 2007
 However, only a few companies were investing in its research and development at that time.
 NFV became much more formalized between 2008 to 2014.
 Today’s global telecommunications industry is at the juncture of seeing a wide-scale deployment of NFV.
 In 2013, Linux Foundation launched a project for open source framework called Project OpenDayLight which
was intended to accelerate NFV adoption.
 The global NFV and SDN market was around $2 billion in 2015.

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Global Uptake of NFV
 It is predicted that by the year 2020, it will increase at a compounded annual growth rate of 86% and reach
around $45 billion.
 North America is expected to lead the deployment.
 The Asia Pacific region, including Japan, is currently the fastest growing economy but it is expected to be
replaced by Europe soon.
 By the year 2020, the investments in orchestration platforms will reach over $1.6 billion and will account for
about 10% of the total NFV spending.
 The high growth can be contributed to the increasing popularity of cloud services, difference in traffic
patterns, growing complexity of networks, rising demand for mobility and server virtualization.

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Key Benefits
 Economical for Customers
 Reduction of cost benefits the network operator and the customer.
 Customers are charged only for the service provided i.e. time of use, bandwidth, number of users etc.
 They do not have to pay for the expenditure of the whole set up.
 Coherence in Operation
 Through implementation of NFV, the network monitors and repairs VNF instances directly in the software
without any manual intervention.
 NFV will make remotely setting up a server on cloud much easier than it is today.

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Key Benefits
 Reduction of Manual Intervention
 Any downtime or interruption at the customer location is repaired directly by NFV without any
manual intervention.
This has enabled network operators to maintain lesser workforce, thus, enabling them to save on manpower
cost.
 Effective use of Resources
 NFV enables the network to use all kinds of unutilized resources.
 This is done remotely through software without any manual intervention.

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Key Benefits
 Reduction in Operational Costs
 NFV entails a network operator to manage the network efficiently and this helps network operators to use the
spare time in network maintenance, experimentation, modification of the network, etc.
 The final result is a massive reduction of operational cost.
 Flexible & Agile
 NFV enables network operators to be flexible and agile.
 With the saved cost and saved downtime, network operators can not only invest in new
technology, they can also use the saved time in technological innovations.

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Key Challenges
 Archaic Infrastructure
 Most businesses have been using legacy infrastructure.
 NFV can only be deployed in new applications.
 NFV functions are therefore being deployed gradually .
 The returns on investments are being used to purchase modern infrastructure through which complex NFV
projects can be purchased in the future.
 Managing Perceptions
 In most cases, enterprise solutions are unable to provide carrier grade reliability since they are not designed
for the telecom environment.
 The good news is NFV does not necessarily require carrier grade reliability and hence have immense latent
opportunities in them.

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Key Challenges
 Technological/Operational
 Neither performance not reliability can be sacrificed while making this move to a virtualized architecture.
 It is also important for operators to adopt to the changing technology of NFV.
 Vendors and equipment providers have to adapt to this change as well.
 This will not happen very fast, hence a considerable amount of patience is required.

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Practical Applications of NFV
 Microsoft Azure
 Microsoft Azure is the best example of successful implementation of NFV.
 The access to Microsoft Azure cloud services marketplace has been optimized through hybrid cloud so that
secure and reliable cloud services can be provided to SMBs and enterprises.
 These services are optimized to ensure they can take the pressure of business applications and workloads.
 Juniper Networks
 Juniper Networks has developed a number of well defined virtual enterprise solutions like network
connectivity, VPN creation, firewall, etc.
 The entire thing is done through the implementation of NFV technology like Contrail Cloud Platform and
Open Stack CMS.
 An entire service chain has been implemented which are in turn offered to enterprise customers.

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Practical Applications of NFV
 Metaswitch Networks
 Metaswitch has a virtual IMS core network through which all kinds of IMS services can be provided in a
matter of minutes.
 This has been done by implementing virtual cloud based structures which are scalable and self-operated.
 The service can not only calculate the size of a specific IMS core network automatically, it also has auto-
healing properties which ensure the fastest recovery and seamless operation.

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