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New Business White Paper: "The reality of cost reduction"

A new HP business white paper has been published by Ghassan Abdo, Senior Director for Communication Service Providers of HP Networking, about the reality of cost reduction.


Abdo states in the beginning that any new technology introduction, the decision to deploy Network Functions Virtualization (NFV) by Communication Service Providers (CSPs), will be guided by a realistic business case and not just marketing promises. Cost savings can be estimated and open a new world of opportunity for providers to drive innovation.


A framework for decision-making provides all the questions which should be answered when deploying NFV. The considered costs would include both CapEx as well as OpEx plus additional savings up to 25% from avoiding training, configuration and shipping costs. According to Abdo, NFV helps CSPs avoid the traditional stair-step CapEx needed to provision capacity in advance of expected demand. Instead, it follows a cloud utility-based business model.


The cost benefits of NFV can be illustrated with a virtual customer premises equipment (vCPE) use case that can provide a cost reduction up to 24%. “Carrier X”, a large conglomerate, used a proof of concept to identify NFV as one of its five strategic programs and now conservatively estimates $66,4M in savings per year by virtualizing most of the network functions. Abdo believes that NFV solutions from HP mark the beginning of a new method of delivering network capabilities that exponentially change the economics of CSPs.


Read the full business white paper here.


About the Author


Julia Ochinero is a seasoned, but not “old school” marketing profes-sional who continues to be excited by the dramatic changes in the communications industry. Julia joined HP in 2009 as Director of Marketing in Communications & Media Solutions (CMS), and she has maintained Telco marketing leadership roles in Enterprise Ser-vices (ES) and Enterprise Group (EG). In her current role as World-wide Marketing Lead for the Communications Solutions Business (CSB) and Network Functions Virtualization (NFV), Julia is directing initiatives focused on positioning HPE as the organization that can facilitate the communications service provider’s (CSP’s) transition to sustainable, profitable business models. Julia’s Telco and networking experience started in Chicago, IL, working for AT Kearney, Andersen Consulting, BT and Ameritech  where she launched the first consumer voice mail rollout in the Unit-ed States. Andersen Consulting relocated her to Silicon Valley to launch its presence in region during early days of the Internet. While in the Valley, she has served in leadership and consulting roles with companies including Adobe, OpenWave, Novell, Nuance Communi-cations, Pixo and RealNetworks. Previous to HP, she was a consult-ant at Accel Partners, the world’s largest venture capital firm headquar-tered in Palo Alto, CA. Julia’s experience enables her to support marketing needs for both early-stage companies and more mature organizations requiring efficient go-to-market strategies. She holds a bachelor’s degree in Journalism and Creative Advertis-ing (Communications) from Bradley University in Peoria, IL. Julia is married and has two children.

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