Digital Edition

SYS-CON.TV
Network Virtualization – Not Your Father’s Business Model | Part 1
Joint emergence of network functions virtualization & software-defined networking amounts to a significant technological change

As technology evolves, business models evolve. The corner grocery store gave way to the emporium, which became the supermarket. Now we order groceries online with a credit card, and a truck turns up with the goods. Hansom cabriolets became taxis and limos, and now we have Uber. At one time, people would communicate at a distance through pigeons and human messengers. Then we created postal services, then email, and now a plethora of social networks. We still eat food, move around and communicate, but we do it all in different contexts. None of this contextual change would be economically or technically possible without the information systems to manage the business relationships, track transactions and settle accounts.

Now, think about your phone and Internet access arrangements. For most people, this means a subscription with one big company, a contractual commitment, a monthly payment and perhaps some usage charges. Big companies build and own the infrastructure; they may subcontract work to other companies, but the carrier "owns" the customer relationships. It was pretty much like that 50 years ago.

The joint emergence of network functions virtualization (NFV) and software-defined networking amounts to a significant technological change - actually, a revolution. Everyone is aware that virtualization of the network means that business relationships and business models will have to change. We are still wrapping our minds around just how enormous that change will be, and how much disruption will be carried in its wake.

This is not the first time people have predicted an overturning of the business models in this industry. People predicted that technology changes such as network switching automation, mobile phone, voice-over-IP and the Internet would all change the communications business as we know it, but it hasn't really changed that much at all. Communications service providers have proven themselves to be rather good at buffering the impact of these technology changes, taking advantage of the cost-saving opportunities while not allowing the customers and revenues to leak away too quickly. Smart. And their suppliers still supply, pretty much in the same way they always used to. Most of us - consumers and businesses - still pay monthly communications bills to a company that is a descendent of the company that built our local networks many decades ago.

So, I'm not predicting the end of those companies. They know how to look after themselves. (Or at least some of them do.) But this time, network virtualization will inevitably transform the way we all do business and procurement models are going to change in a big way for carriers, their customers, partners and suppliers.

What challenges will they face, and who or what will be the driving forces? I'll get into it in my next blog. Follow us on Twitter to make sure you don't miss it.

About Esmeralda Swartz
Esmeralda Swartz is VP, Marketing Enterprise and Cloud, BUSS. She has spent 15 years as a marketing, product management, and business development technology executive bringing disruptive technologies and companies to market. Esmeralda was CMO of MetraTech, now part of Ericsson. At MetraTech, Esmeralda was responsible for go-to-market strategy and execution for enterprise and SaaS products, product management, business development and partner programs. Prior to MetraTech, Esmeralda was co-founder, Vice President of Marketing and Business Development at Lightwolf Technologies, a big data management startup. She was previously co-founder and Senior Vice President of Marketing and Business Development of Soapstone Networks, a developer of resource and service control software, now part of Extreme Networks.

In order to post a comment you need to be registered and logged in.

Register | Sign-in

Reader Feedback: Page 1 of 1



ADS BY GOOGLE
Subscribe to the World's Most Powerful Newsletters

ADS BY GOOGLE

CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018,...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news an...
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22...
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held Novemb...
Organizations planning enterprise data center consolidation and modernization projects are faced wit...
A traditional way of software development efforts reimbursing is pay by the hour, which in case of r...
Adding public cloud resources to an existing application can be a daunting process. The tools that y...
CI/CD is conceptually straightforward, yet often technically intricate to implement since it require...
Fact: storage performance problems have only gotten more complicated, as applications not only have ...
"We do one of the best file systems in the world. We learned how to deal with Big Data many years ag...
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems ...
Containers, microservices and DevOps are all the rage lately. You can read about how great they are ...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can ...
When building large, cloud-based applications that operate at a high scale, it’s important to mainta...
While some developers care passionately about how data centers and clouds are architected, for most,...
"Peak 10 is a hybrid infrastructure provider across the nation. We are in the thick of things when i...
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use ...
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and ap...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO an...
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple ...