As a result of the SDN/NFV evolution, the larger network expense for an operator is poised to move into software (function) licensing, as opposed to hardware platform licensing. Considering the re-usability and re-location characteristics of a software license, the cost saving advantages become quite compelling. The asset driving the most attention within a telecom network going forward will be the software license that drives the function itself.

This has several substantial positive market impacts:

• Hardware costs are now driven by far more competition, as mainstream computing providers can access this market with high-performing alternatives,
  
• Capacity planning can focus on function agility and mobility, as computing resources can be more easily and inexpensively deployed,
  
• Sparing costs can be slashed, expensive specialized hardware categories are not needed in each warehouse, or hot spares in central offices. 
• A single commodity platform can be tasked for any specialized function based on the software deployed on it, and
  
• Computing resources can be multi-tasked.  A single rack of computers serving a telecom network can be re-tasked with different roles and services, throughout any given time period (e.g., a day, an hour, etc.) based on network needs.

Transforming for the future of Real-Time 

Considering the trillions of dollars spent on existing network assets already deployed today, it is unreasonable to imagine those networks being “shut off” as next-gen networks are brought live. Instead, operators will run networks in parallel until they have exhausted the usable life of each asset. 

As networks transform to “smart” operations to support the real-time customer, how do network operations team balance legacy networks during mid-transformation periods that could take years to traverse? These challenges will exist at core network levels and out into aggregation and access layers; maintaining a high level of service quality as events move across multiple delivery technologies is no small undertaking.

The business driver of any transformation strategy is customer experience. While operators are transforming to achieve agility, reduce expenses — to serve the needs of the real-time customer — the need to maintain a high-quality customer experience throughout this period will be critical.  Operators should focus on a program to manage key initiatives to be executed during the move to SDN/NFV:

1. Deployment of an integrated Service Orchestration (SO) layer. While SO is being widely discussed as target-state for SDN//NFV, the need to operate a hybrid network (to include legacy components) will mean the SO should support legacy platforms within its operational scope.
2. Capacity Forecasting and Planning. While tactical (operational) capacity data is a staple of any Network Operating Centre (NOC), strategic views into capacity that look out 12 months will be crucial to determine where risks for exhaustion will exist and to determine how that issue should be resolved in any given point on the network. Accelerating a transformation is not always the correct answer. 
3. A strong program for Network Asset Lifecycle Management. The strategic model which incorporates views into asset movement, utilizations during each deployment cycle, license performance metrics, changes in CAPEX and OPEX variables during transformative periods, and sophisticated demographic views to understand the changing consumption characteristics of the network consumers will give a clearer picture of overall Asset Investment analytics.
   

There is no end to the impacts of digital revolution on telecommunications networks, and certainly no clearly established strategy to drive more revenues from the increased demand being placed on those networks. The variables operators can most readily control, therefore, relate to cost and agility.  The industry movement towards deploying a SDN/NFV network provides operators a path to answer these challenges: a network technology to reduce network costs, and a network agility, through self-awareness, to ensure resources are in place to provide a superior customer experience. As the real-time customer demands instant access, omni-channel benefits, and a superior experience, how well an operator can design, deploy, and control those variables will ultimately serve as a barometer to their long-term success.