4Network Functions Virtualization (NFV)

An integral part of Telco (Telecommunication) operators are proprietary hardware devices. Telco (Telecommunication operators) does not avoid buying new hardware with the same functionality and services, as these devices are required for the provision of new services. It presents many complications associated with both the increasing costs and with the time demands of this deployment, such as TTM (time to market) and TTD (time to deploy). These complications are becoming nowadays for Telco operators limiting factors to providing quality of services.

Fig. 6 illustrates new approach in network architecture based on Network Functions Virtualization (NFV).

This approach provides to network/telco operators the opportunity to consolidate many network equipment types onto industry standard high volume servers, switches and storage, which could be located in Datacenters, Network Nodes and in the end user premises.

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Fig. 6 - Vision of Network Functions Virtualization [13]

Benefits for network/telco operators:

  • Reducing CAPEX (capital expenditure) and OPEX (operational expenses, such as Repair and maintenance) by reducing the cost of equipment and reduce energy consumption,
  • Shorter time to market for deploying new network services
  • Better return on investment of new services,
  • Greater flexibility scalability or developing services
  • Opportunities to testing and deployment of new innovative services with lower risk.

In October 2012 the white paper that presented the first draft of NFV was published [13]. ETSI set out the various requirements which are placed on the technology and described the benefits that come with NFV technology and this technology should bring. Network Functions Virtualization Industry Specification Group (NFV ISG) has been created to cover all tasks related to new emerged technology. This Group was created by the European Telecommunications Standards Institute (ETSI). From October 2012 the NFV ISG Group was gradually increased and about 235 conducted companies attended several meetings in Asia, Europe and North America. Outputs of the first meeting of the group NFV ISG were in the form of documents, and were issued in October 2013. The documents cover all the architecture NFV with all components and interfaces between them written down. From 2013 through 2015 this group ran the second phase and newer documents are available directly on the website NFV ISG.