By: Josh Bottum, Service Creation Manager, Cisco
I recently presented a keynote address at the Software Telco Congress, which was held in the Santa Clara Tech Mart on November 20-21. About 80 people attended. The audience was mostly comprised of VP and CTOs from vendors. A few Service Providers attended i.e. Orange, SK, Rackspace, as well as some integrators and startups. Although most of the presentations promoted that NFV will positively impact Service Providers, the majority of speakers expressed concerns around NFV orchestration and integration. For example, which vendor will provide the integration and solution validation testing of a multi-vendor NFV solution? Who will be responsible for completing OSS and BSS integration? Who will be responsible to insure that a proposed multi-vendor NFV solution performs according to specification?
Most of the keynotes and panel discussions focused on defining NFV, and many speakers dove into how NFV relates to SDN & Cloud. While several of the presentations were focused on trends in the technology and implementation, my presentation, NFV Business Justification, reviewed the NFV economic drivers for the Service Providers. This briefing reviewed the business justifications for deploying NFV solutions. The discussion reviewed how NFV helps Service Providers become the low price producer and innovation leader. Although the presentation is designed for general and product management executives, it is also appropriate for R&D, operational and engineering titles as well. My talk on how “NFV will transform Service Delivery Revenue and Costs” provided some specific examples on how NFV can impact a Service Provider’s revenues and costs. The presentation reviewed how a Service Provider can use a single NFV platform to delivery multiple services and how this impacts OPEX, CAPEX and Time-to-Revenue. It reviewed examples of managed services from AT&T, Verizon and Amazon and how NFV will (or has) impacted those services.
SDN Central Article Recap: NFV Won't Monetize Overnight (but Can Still Have a Short-Term Payoff)