FAQ on SDN and NFV

Posted August 28, 2013 by Eve Griliches

Q: How does BTI's focus on SDN and NFV help your customers?

A: Our focus is mainly on cloud providers, colocation/hosting providers and Web 2.0 customers who are early adopters of technology and architectural changes. These are the providers who clearly 'get it', and are on the fore front of building high-capacity, low-latency scalable networks that demand high performance. By adopting the latest technology, networks can become quick and agile and can deliver services at a very faster rate. This agility fits the new model for NFV that delivers bandwidth or services in 'software time' not the standard hardware time that was 18 to 24 months.

Q: What are some use cases you are seeing?

A: The typical use case being discussed today is virtualization, but we see many more beyond that. Examples are server extension to access networks from the POP, and load balancing across multiple data centers. A real interesting one is where hosting and colocation properties provide not just traditional interconnectivity, but an actual partner and customer portal for meet-and-greet business opportunities. This enables a whole secondary source of income for the provider. What's key to these applications or use cases is that they require an open networking platform. And, an open networking platform is extremely useful for the architectures that cloud providers, content delivery networks and private backbone networks require to deliver new services.

Q: How will those use cases be introduced into the network?

A: Well, it's certainly a process. Everyone, whether they're an enterprise, a service provider, or a Web 2.0 company, is looking to either make money from their network, save money on their network or be a differentiator one way or another. SDN has made everybody rethink 20 years of networking and say let's do this a little bit differently, which is great. Before, no one really knew if the applications were impacting the network. Was it the application, or was it the network? We're at the point now where we can pull out the data, do a little data mining, and as one customer said, look at 'empirical evidence' not someone's guess on what the application might be doing to the network. Once this happens, we can program and automate the network so it's tuned to what the applications require. Those two processes really need to take place immediately.

The next steps will be to offer more services, and offer those services in a faster time to market. Traditionally, there has been an 18-to-24-month delivery for a new service to market. That's unacceptable these days. We're now talking about weeks or days to get new services to market. That is really where the monetization comes in; faster time to market brings revenues in sooner. Once that is in place, providers can do more bundling and subsequently more upselling. And having said that, there's actually a secondary monetization market which I believe is still relatively ignored. 75% of the Netflix downloads today come from their online recommendations. Look at Zappos and Amazon, all of these sites operate and have recognized increasing revenues due to their recommendation models. So, multiple monetization models are beginning to emerge and that is what providers are discovering. I think this is where the exciting applications and market are going to be.

Q: What are some of the inhibitors to SDN and NFV adoption?

A: It's not the technology. But clearly, smaller companies are more nimble than larger ones, so there will always be an advantage when change is rapidly taking over a market like this one is right now. Some of our customers have assembled their most innovative staff, created an internal prototype and presented it to the rest of their company, with the intent that others will join the team having seen what can be done.

Q: Can you give an example of a customer utilizing SDN/NFV today and how?

A: We already have customers that have connected large data centers, moved their core routers to the peering or gateway function, and started to switch instead of route between data centers. They are using our open networking platform and applications enablement platform to bring in new customers who can partner with other customers in their network. Hosting and colocation providers are already enabling their customers to meet other customers and do business with them. This is enabling a whole monetization neighborhood out of a simpler interconnectivity model, and it's all being done through open APIs. With an open networking platform that can enable cloud to cloud, cloud to colocation host, hosting provider to customer, and customer to customer interactions, a new revenue monetization market can be created on top of simple and easy infrastructure.
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About Eve Griliches

Eve Griliches, Director, Solutions Marketing, BTI Systems.

View all posts by Eve Griliches

Posted in Business and the Network, Cloud, Company News, Data Center, Industry Insights, NFV, SDN | Bookmark this Permalink

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