Network Infrastructure Virtualization: Transforming Telecommunications and Managed Services
Historically, telecom operators have looked to infrastructure providers, service bureau companies and traditional managed communication services companies for infrastructure and related services. A recent industry trend has been to outsource infrastructure as a service as a means of reducing Capital Expenditure (CapEx) and to use as negotiation leverage for improved pricing on next generation networks such as IP Multimedia Subsystem (IMS) and LTE infrastructure such as Voice over LTE (VoLTE). Network Functions Virtualization (NFV) is a telecom led initiative that aims to utilize standard IT virtualization technology to consolidate many telco network equipment types onto industry standard high volume servers, switches and storage. NFV involves implementing network functions in software that can run on a range of industry standard server hardware, and that can be moved to, or instantiated in, various locations in the network as required, without the need to install new proprietary equipment. This report evaluates the impact of virtualization on managed services including communications, applications, content, and commerce. The report includes market outlook, forecasts 2014 â 2019, and specific recommendations for industry constituents.