Network Functions Virtualization (NFV) is igniting the next evolution in mobile networking. In less than 10 years, UMTS (3G) and rapid adoption of smart phone and applications have revolutionized subscribers’ usage behavior and transformed networks from voice-centric to data-centric and kept mobile operators scrambling to keep pace with fast growing, data hungry applications and their unpredictable impact on the network. Over 300 LTE networks have been deployed globally, intended in part, to solve the bandwidth crunch and to also introduce a simpler, flatter architecture into mobile networks. Now, virtualization technology promises to empower mobile operators to further drive down capitol and operational expenses, and fuel more rapid service innovation while reducing time-to-market.

But unlike the prior 3G/4G network evolutions, NFV will be far more disruptive to the entire industry. Consider the implications to the industry and carrier organization of the following benefits of NFV:

• NFV provides more elastic deployment options, so functions can be abstracted from a specific hardware implementation and don’t necessarily have to reside within the traditional RAN-Backhaul-Core hierarchy. For example, control and processing functions of the eNodeB can be located in a data center, with only the radio functions physically located at the cell site.
  • Carrier organizational structure, which is now defined by technology and geography will realign into data centers – the power structure will shift.
  • Different operational and technical skill sets will be needed to manage this new type of network.

• Virtualized network functions, defined by software rather than hardware, allowing operators to dynamically scale capacity with demand and add new service capabilities, quickly and easily.
  • Important operator values for network consistency and reliability will have to be balanced with a strong support for innovation and change. Legacy infrastructure hardware vendors will have to dramatically change their product architecture as well as their business model and pricing structure.

Notably, the announcement of AT&T “User Defined Network Cloud” in February of 2014 year came back to back with massive re-organization announcements and a supply chain initiative to encourage smaller suppliers, Domain 2.0.

If disruption can be managed at all, it is at best a messy process, and the implications and path towards deployment are unclear. At a Light Reading Conference on NFV and the Telco Data Center, enthusiasm about the potential benefits of a virtualized mobile network was countered with concerns about the technical, organizational, and implementation realities required. Vendors spoke of both the reasons why NFV was needed for cost savings and new service revenue potential and the need to still maintain network performance and security. Security, in particular was debated, as the attack surface/vulnerability becomes much greater in a virtualized environment, especially when a lot of open source code is used, but the opportunity to shut down attacks in progress is also greater.

A few quotes from the conference echos these concerns:

“Google doesn’t have dial tone”

“Data centers don’t care about real time.”

“Without addressing the performance issues, the promise of NFV won’t happen.”

“The industry needs to focus on carrier grade standards that are already set, and make NFV meet that.”

“Replacing complex hardware with complex software doesn’t help reduce complexity.”

The evolution to an NFV-driven network clearly entails profound technical, cultural and organization changes for the entire mobile ecosystem. A recent report by Senza Fili Consulting[1] captures this well:

“The benefits from virtualization will be contained at the beginning, and they will be fully realized only with full network virtualization. Yet, operators will have to make a substantial investment in their efforts to move to NFV from the beginning – they have to deal not only with a major technological shift, and they also have to restructure the way they operate to adapt to the cultural changes that virtualization ushers in.”