RA’ANANA Israel, 12 October 2021 / PRNewswire / – DriveNets, a leader in networking software and cloud-native network disaggregation solutions, shared the results of a survey of telecommunications network executives conducted by STL Partners indicating that Operators recognize the economic value of a hyperscale architecture and the inevitability of cloud-native network disaggregation, but their perspectives and plans to pursue these goals vary widely. Against this background, the report argues that the large-scale economy should be seen as “an ongoing strategic goal and pursuit” for telecom operators to remain competitive with cloud service alternatives, and to keep them competitive. should focus first on the most feasible areas of disaggregation and automation, especially the core network.

The poll, Pursuing the economy on a large scale: what, why and how telecom operators can do it, was conducted by STL Partners and sponsored by DriveNets. According to the report, telecom operators view hyperscale cloud providers in three ways:

  • As business partners able to stimulate new areas of demand and provide infrastructure-as-a-service for IT and operational payloads of operators
  • As threats that reduce the value of operators through over-the-top (OTT) and under-the-network services, trivializing the core business of operators
  • As models from which operators can learn and adopt business and operational models, and technological innovations

According to Yesmean Luk, Telco Cloud Practice Lead at STL Partners and author of the report, the biggest opportunity for operators is to focus on this last point and the impact the hyperscale economy can have on operator costs and capabilities.

“The value of networks has shifted from the networks themselves to the services that use them,” she said. “We are seeing this through the incredible business growth of cloud providers and the wide range of cloud-based services and applications that are being deployed. As carriers move to more advanced, data-intensive connectivity services such as 5G and fiber-to-the-home, they will benefit from the growing demand for capacity and throughput, but as their capabilities grow. increase, they will have to manage costs in a more sustainable and optimal way. offers and agility to respond to them. Large-scale suppliers serve as a model. “

Disaggregation: not if, but how

The report found consensus among operators that disaggregation and evolution to cloud-native architectures for networking is inevitable.

In a recent webinar and roundtable produced by STL Partners, Bryce mitchell, vice president of Core Network Engineering at Rogers Communications, recognized that the economy at scale can have a positive impact on the bottom line of network operators.

“There is a lot of value in these concepts,” he said. “The number of subscribers is growing relatively slowly, ARPU is rather stagnant, but usage is increasing. We need to look at our cost structures and reduce them.”

But not all operators believe large-scale economics is applicable or achievable for them. There is even a risk of complacency among some incumbents who may stand idly by while others seize the opportunity to innovate early.

The report identified three key factors for the pursuit of the large-scale economy: optimal scalability, faster innovation and time to market, and flexibility and resilience to change.

“When we meet with customers, their main concern is to reduce costs,” said Inbar Lasser-Raab, Marketing Director of DriveNets. “Large-scale economics and disaggregation gives service providers the ability to run multiple networks and services and do a better job using their network capacity and resources, reducing their costs. “

Target the heart of the network

The report suggests that the core network is a revolutionary area of ​​opportunity for the large-scale economy due to continued growth in network traffic volumes, ecosystem maturity, lessons learned from past virtualization deployments. network functions (NFV) and the deployment of autonomous 5G (SA) technologies. This is true for small and large operators.

“Success in making the economy large is not just a matter of size,” Luk said. “The right architecture and the right operating models are the key ingredients for success, regardless of the size of the organization. Network operators need to learn from what hyperscalers have done, apply them to their business and their network, and focus on the key steps ahead to fuel that momentum. Many of them have already started. “

Download the full report here.

About DriveNet

DriveNets is a leader in cloud native networking software and network disaggregation solutions. Founded in 2015 and based in Israel, DriveNets offers communication service providers (CSPs) and cloud providers a radical new way to build networks, dramatically increasing their profitability by changing their technological and business models. DriveNets’ solution – Network Cloud – adapts the architectural model of the cloud to telecom-level networking. Network Cloud is cloud-native software that runs on a shared physical infrastructure of standard white boxes, radically simplifying network operations, delivering telecommunications-scale performance and elasticity at a much lower cost. Learn more aboutwww.drivenets.com

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Monahan crystal

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