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Network Infrastructure Virtualization: Transforming Telecommunications and Managed Services

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).

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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.

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The report includes market outlook, forecasts 2014 – 2019, and specific recommendations for industry constituents.

Target Audience: 

    Datacenter providers

    Telecom service providers

    API management companies

    SDN and virtualization vendors

    Telecom managed service providers

    Wireless/mobile infrastructure providers

    Cloud infrastructure and service providers

    SMB and enterprise companies of all types

    Regulatory bodies and governmental organizations

    Investors: venture capital, private equity and hedge funds 

Report Benefits: 

    Network Function Virtualization (NFV) Forecast 2014 – 2019

    Understand telecom virtualization and NFV in mobile networks

    Identify the NFV use cases and related business benefits for telecom

    Understand virtualization principles and methods for cloud-based infrastructure

    Recognize the threats and opportunities for carriers and infrastructure providers

    Identify specific virtualization opportunities for managed telecom service providers

    Understand the role and importance of Software Defined Networks (SDN) in virtualization

    Understand the role of virtualization in each network functional plane: Transport, Control, and Services 

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Table of Contents: 

1.0 EXECUTIVE SUMMARY  

2.0 MANAGED SERVICES  

2.1 TYPES OF TELECOM SERVICES 

2.1.1 TECHNICAL SERVICES 

2.1.2 PROFESSIONAL SERVICES 

2.1.3 MANAGED SERVICES  

2.2 MANAGED SERVICES TYPES  

2.2.1 MANAGED INFRASTRUCTURE SERVICES  

2.2.2 MANAGED CONTENT SERVICES  

2.2.3 MANAGED COMMUNICATION SERVICES  

2.2.4 MANAGED APPLICATION SERVICES  

2.2.5 MANAGED DATA AND INFORMATION  

2.2.6 MANAGED SECURITY  

2.2.7 MANAGED STORAGE  

3.0 VIRTUALIZATION  

3.1 VIRTUALIZATION IN CONTEXT  

3.2 VIRTUALIZATION AND SOFTWARE DEFINED NETWORKS (SDN) 

3.3 VIRTUALIZATION AND CLOUD ORCHESTRATION  

3.4 VIRTUALIZATION DRIVERS  

3.5 VIRTUALIZATION CHALLENGES  

3.6 VIRTUALIZATION CONFIGURATION MANAGEMENT 

4.0 TECHNICAL AND ARCHITECTURAL CONSIDERATIONS  

4.1 NETWORK ISSUES  

4.1.1 CONNECTIVITY 

4.1.2 PROTOCOL INTEROPERABILITY  

4.1.3 ACCESS AUTHENTICATION AND AUTHORIZATION  

4.1.4 ADDRESS MAPPING AND ROUTING  

4.2 CLOUD BASED SERVICES  

4.2.1 CLOUD BASED AND HYBRID DATA CENTERS  

4.2.2 VIRTUALIZED SERVICES: COMMUNICATIONS, APPS, CONTENT, AND COMMERCE IN THE CLOUD  

4.3 VIRTUALIZATION OF NETWORK INFRASTRUCTURE 32

4.3.1 VIRTUALIZATION OF THE NETWORK PLANES: TRANSPORT, CONTROL, AND SERVICES 

4.3.2 NETWORK EVOLUTION: CLASSIC HARDWARE TO VIRTUAL APPLIANCES  

4.3.3 NETWORK FUNCTION VIRTUALIZATION (NFV) 

4.3.4 NFV USE CASES: ARCHITECTURAL AND SERVICE-ORIENTED  

4.3.5 OPERATIONAL SUPPORT SYSTEMS (OSS) AND BILLING SUPPORT SYSTEMS (BSS)  

5.0 IMPACT OF VIRTUALIZATION ON MANAGED SERVICES 

5.1 VIRTUALIZATION IS NOT SYNONYMOUS WITH CLOUD COMPUTING BUT IS IMPORTANT 

5.2 THE VIRTUALIZED CLOUD ENVIRONMENT 

5.3 VIRTUALIZATION AND MULTITENANT ARCHITECTURE AND SERVICES DELIVERY  

5.4 VIRTUALIZATION AND TELECOM NETWORK FUNCTIONAL ELEMENTS  

5.5 VIRTUALIZATION AND SOFTWARE DEFINED NETWORKS (SDN)  

5.6 VIRTUALIZATION IN THE ENTERPRISE  

5.7 VIRTUALIZATION AND MANAGED SERVICES  

6.0 VIRTUALIZATION THREATS AND OPPORTUNITIES  

6.1 MANAGED SERVICE PROVIDERS TO BECOME PREDATOR AND PREY  

6.1.1 THREATS TO INCUMBENT PROVIDERS  

6.1.2 OPPORTUNITIES FOR ALTERNATIVE PROVIDERS  

6.2 SPECIFIC THREATS AND OPPORTUNITIES TO MANAGED INFRASTRUCTURE PROVIDERS 

6.3 OPPORTUNITIES FOR NETWORK OPERATORS  

6.4 OPPORTUNITIES FOR MANAGED SERVICES PROVIDERS 

6.4.1 NFV ORCHESTRATION  

6.4.2 INTER-CLOUD INTEROPERABILITY (ICI)  

6.5 OPPORTUNITIES TO CONTENT AND APPLICATION PROVIDERS  

7.0 NETWORK FUNCTION VIRTUALIZATION OUTLOOK AND FORECASTS 2014 - 2019  

7.1 REVENUE OPPORTUNITIES IN NFV 

7.2 GLOBAL NFV OUTLOOK AND REVENUE  

7.3 REGIONAL NFV REVENUE 

7.3.1 ASIA PACIFIC REGION  

7.3.2 EASTERN EUROPE REGION 

7.3.3 LATIN AMERICA REGION  

7.3.4 MIDDLE EAST AND AFRICA REGION  

7.3.5 NORTH AMERICA REGION  

7.3.6 WESTERN EUROPE REGION  

8.0 CONCLUSIONS AND RECOMMENDATIONS  

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