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Defining your NFV strategy – Start by Exploring the Business Drivers

This blog has been written by John O’Connell – HP CMS Chief Technologist.


Earlier this year, HP conducted a survey of CTOs and CIOs at 50 leading service providers from across the globe to collect their views on the key business drivers for NFV. The aggregated results of the survey were published in a HP e-Zine on NFV, and a summary is shown here.


NFV Key Business Drivers.jpg


The survey showed that the expected business outcome from NFV is clearly multi-dimensional. NFV is not just about reducing OPEX and CAPEX spending. Different CSPs will rank the business impacts of NFV differently, and many also expect NFV to drive new service revenue, to help them to compete with OTT players, to allow them to work with a larger supplier group, to increase agility and flexibility, to shorten innovation cycles and to reduce the risk of rolling out new services.


As highlighted in this earlier blog on NFV transformation, at HP we believe that CSPs should start their NFV journey by exploring those different dimensions and reviewing their key business priorities.  While much of the focus in the industry around NFV has been on the technical challenges of migrating physical network functions to a virtualized software-based architecture based on COTS hardware, CSPs also need to spend the time to clarify the key business drivers for their NFV initiative.


It is important to analyze the drivers that are most relevant to their business, including ones that they may not have considered in their initial NFV plans. With the new insights that come from that assessment, they can better align their NFV strategy and roadmap with their specific business imperatives.


For CSPs who want to drive new service revenue, what is their strategy to win a larger market share in revenue growth areas such as mobile data, cloud services, delivery of video content and M2M, where collaboration with external partners will be key? What extra flexibility is required in their network infrastructure to be able to meet the unique requirements of each application or content provider?


For CSPs who want to drive more innovation into their network, how will they manage the risk that is associated with innovation? What are their objectives in terms of reducing the cost of trying out new services and what are their plans to work with innovative new suppliers?


For CSPs who are focused on OPEX and CAPEX reduction, where are their current cost pain points and how can a more cost-optimized infrastructure help to eliminate the need for large upfront investment for each new future service?


For CSPs who want greater business agility, how will they migrate from long-term capacity planning to a more elastic and dynamic business model? What are their plans to offer multi-tenancy at a network function or network subsystem level, with automated lifecycle management and elasticity at a pre-tenant level?


With our consultative approach and with our expertise in telecoms and IT transformation, HP can help the CSP to analyze the different potential business drivers for NFV, to structure a discussion on what business outcomes they want to focus on, and to determine how to structure their NFV transformation to meet their specific goals.


To find out more, meet us at TM Forum Live June 2-5 Nice France -   Booth #94 - to discuss your journey, to learn more about HP’s OpenNFV program and to try out our new HP NFV Director Orchestration and Management solution.


Meet us at HP Discover Vegas June 10 -12 Las Vegas US to discuss how we can help you to structure your NFV transformation.



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