NFV to Drive Down Operators' Network Costs, Heavy Reading Finds

Revolutionizing the way networks are built, network functions virtualization may help drive down operators' network costs, says Heavy Reading Insider

Aug 9, 2013

NEW YORK, Aug. 9, 2013 /PRNewswire/ -- Network functions virtualization (NFV) could revolutionize the way networks are built and drive down operators' network costs, causing network equipment vendors to rethink their approaches to secure future revenue, according to the latest report from Heavy Reading Insider (, a subscription research service from Heavy Reading (

Picking Winners From the NFV Revolution assesses the "who, what, how and why" of network function virtualization. Who is actively developing network function virtualization approaches? What are they doing? How are they approaching virtualization? And most importantly, why is anyone interested in virtualization in the first place? It also profiles major network equipment providers and systems integrators that have been quick to position themselves in the NFV space, reviewing their NFV strategies. The report also profiles some of the ISVs and appliance vendors that have been fastest to market with NFV-based solutions.

For a list of companies covered in this report,

"NFV could revolutionize the way telecom operators build and run their networks," says Simon Sherrington, research analyst with Heavy Reading Insider and author of the report. "It is a concept that has major network equipment vendors rethinking their approach to supplying their biggest customers and the ways in which they will secure their future revenues; and it has operators looking at a rose-tinted, operationally-efficient, low-cost future."

NFV involves, at its simplest level, taking network functions that have traditionally been provided on proprietary hardware, and virtualizing them so that they run on COTS hardware, Sherrington says. "At the next level, multiple virtualized functions can be run on the same COTS hardware systems, and network architectures can be reconfigured to make telco operations much leaner," he continues. "It is too early to be able to predict the individual winners and losers that NFV will create, but considering the market at a cohort level several things are evident, including network operators of all types stand to benefit from network function virtualization. However, there will be some pain and expenditure, and several years of learning before that benefit is realized."

Key findings of Picking Winners From the NFV Revolution include the following:

  • Huge revenue streams are at stake, with the result that established vendors are scrambling to get a seat at the table
  • Traditional network equipment providers are seeking to replace hardware revenues by selling the cloud infrastructures in which virtualized functions would run
  • Systems integrators see network equipment providers moving in on their patch, and so are talking up their own capabilities
  • New vendors are appearing with out-of-the-box virtual functions and the ability to be aggressive in terms of business model
  • Commodity hardware vendors are rubbing their hands with glee, although it will be a few years before they get their hands on all those telco dollars

Picking Winners From the NFV Revolution is available as part of an annual single-user subscription (12 issues) to Heavy Reading Insider, priced at $1,995. Individual reports are available for $900 (single-user license). This report also is available as part of Heavy Reading's new SDN & NFV Total Access Service.

To subscribe, or for more information, please visit: For more information about other Heavy Reading Insider research services, please visit:

To request a free executive summary of the report, or for details on multi-user licensing options, please contact:

David Williams
Global Director of Sales, Research
Heavy Reading

Press/analyst contact:
Jennifer Baker
Marketing Director, Light Reading Communications Network

About Heavy Reading (
Heavy Reading is an independent research organization offering deep analysis of emerging telecom trends to network operators, technology suppliers, and investors. Its product portfolio includes in-depth reports that address critical next-generation technology and service issues, market trackers that focus on the telecom industry's most critical technology sectors, exclusive worldwide surveys of network operator decision-makers that identify future purchasing and deployment plans, and a rich array of custom and consulting services that give clients the market intelligence needed to compete successfully in the global telecom industry. As a division of UBM Tech (, Heavy Reading contributes to the only integrated business information platform serving the global communications industry.

SOURCE Heavy Reading