A new report by ACG Research, sponsored by Affirmed Networks and VMWare finds that "For mobile network operators (MNOs), the decision to delay network virtualization efforts can be a costly one. Every year that MNOs delay the move to network functions virtualization (NFV) cost them millions of dollars in unnecessary capital and operating expenses.
In a five-year cost comparison between MNOs with traditional and virtualized network architectures, ACG found that:
- MNOs that transitioned to an NFV-based platform began saving money in the first year and realize an investment payback in 3 years
- Adopting a virtualized Evolved Packet Core (EPC) solution reduced Capex by 68% and Opex by 67% on average
- MNOs were able to turn up a virtualized network much more quickly"
A scenario of a large-scale broadband service, compares virtualizing the following network elements; "Signaling Gateway (SGW), Packet Gateway (PGW), Policy and Charging Enforcement Function (PCEF), Subscriber Firewall, Deep Packet Inspection (DPI) and Web and Video Content Management including caching, image compression, content filtering, TCP optimization, video pacing, header enrichment and gzip compression on text objects" to a traditional best of breed solution:
"the five-year cumulative TCO of the Virtualized solution is 67 percent lower than that of the Traditional solution. Virtualized Capex is 68 percent lower, and Virtualized Opex is 67 percent lower than the Traditional solution"
See "Total Cost of Ownership Study Virtualizing the Mobile Core" - here.