It seems that The New IP -- or massively scalable networks that can handle the mobile data boom, cloud services explosion, big data analytics burst and Internet of Things bang -- is "all about the money," according to the results of our first poll, "Is the New IP all about the money?" In fact, 33.33% of respondents agreed, "Yes, it's always about the money."
For service providers facing the threats I listed above (cleverly using up all the synonyms I could find for "explosion"), The New IP is a multi-faceted story. By embracing new technologies that allow more flexibility and scalability than traditional legacy IP networks, they will be able to compete with the likes of OTT players. In fact, 22.6% of poll respondents said that The New IP is "The only way network operators will be able to compete against the Internet giants." And unless they become competitive, survival is not assured -- witness the 16% of respondents who said it was not about the money, but "survival first, then profits later."
But in The New IP era, it's still the business case that counts. Even as they embrace new technologies such as virtualization and new approaches such as open sourcing, network operators have the same old realities: their stockholders, and the Wall Street community in general, must be served.
According to Heavy Reading Senior Analyst Caroline Chappell, the real business case behind NFV is agility and being able to quickly adapt to customer demand. With virtualized network functions, service providers can cut out the middleman (network, PoP, data center, engineers, travel, inventories) to rapidly deliver services, Chappell notes. (See Agility Key to NFV Business Case ).
Taking this into consideration, the business case behind moving to a virtualized infrastructure looks obvious. But Chappell notes that total cost of ownership (TCO) in the era of The New IP has to factor in the cost of cloud management and orchestration, processes, organizational and cultural changes that must not be underestimated.
Down at the bottom of the poll, 10.67% responded that The New IP "might be about the technology," while 17.33% responded to the snarky, "What's The New IP?" To those in that 27%, I advise you to keep your browser tuned to The New IP site, hit the virtual books, watch webinars, and educate yourself. We are on the cusp of a big technological and cultural change that will transform our industry, and while technology is a factor in the change, the business impact is going to be significant.
Speaking of that change, be sure to check out our poll for this week: What will The New IP impact the most?
— Elizabeth Miller Coyne, Editor, The New IP