Welcome!

SDN Journal Authors: Pat Romanski, Destiny Bertucci, Liz McMillan, Elizabeth White, Amitabh Sinha

Related Topics: Containers Expo Blog, Java IoT, Linux Containers, Open Source Cloud, @CloudExpo, SDN Journal

Containers Expo Blog: Article

Network Virtualization – Who Will Prosper and Who Will Not? | Part 2

Virtualization means that everything will run on commodity hardware – the same as the rest of the commercial world

In my last blog, I looked at the evolution of technology as we move to virtualization. What will this new development mean for business models, industry developments and industry players?

Virtualization means that everything will run on commodity hardware - the same as the rest of the commercial world. No proprietary equipment, just generic devices and servers running software. Who will build the data centers? Probably the same set of companies that build data centers for everyone else. That is, not necessarily network equipment companies or phone companies.

Who will write the software? Presumably the network equipment companies, at first. But the cost of entry into a software-driven industry is much lower than the cost of entry into a hardware-dominated industry. Mass-producing software is far less expensive than mass-producing hardware, so new players will rapidly emerge and some of them will prosper. Just as likely, some of the existing players will not. An industry with thousands of large, medium and small companies has different dynamics than an industry dominated by a few giants.

Will communications service providers (CSPs) get into the software business? They understand how networks work, and the move to virtualization provides a new playing field in which CSPs stand as good a chance as any of creating new, reliable and secure software. Why shouldn't the CSPs work together in a sort of almost-open-source movement, share their products and services and reap the financial benefits?

And then who will design the networks and do the network capacity planning? Ultimately, the network will do most of that itself. Just as it is possible to write code that writes more code according to rules, it is possible to write code within the network that not only manages the traffic, but identifies when and where new capacity is needed, and installs itself in the newly activated devices. Where do those devices and servers come from? Anywhere; they are generic, standardized and commoditized.

Who will create network capacity by actually placing the building blocks in position? Some humans may do this, or maybe robots, but they don't need to work for the phone company. They could work for a sub-contractor or one of the companies that today we think of as equipment vendors. Or perhaps that is a whole new industry, in the same way house builders don't have to make bricks, or be architects, real estate agents or landlords. They just build and sell.

So who will actually own the network assets? It could be anyone, even a company that has no actual end users as customers. Virtualization, and all that goes with it, will make it possible to own network assets, and to offer those assets as capacity for others to rent. That capacity could then be used by whatever CSP needs it most at the time, and is willing to pay for it.

CSPs will both own and rent capacity, or rather their automated agents will do so on their behalf, guided by rules that will be developed initially by human coders, but which will evolve and be optimized by more software. And the fact that all network capability can be addressed by anyone with access means that we could end up with a rich network of niche relationships, with services appearing and disappearing like twinkling stars.

Users of the network today are somewhat imprisoned: they have limited choices of service providers and services. It may be in the interests of CSPs to keep it that way for a while, but ultimately the capabilities of the technology will create a completely new type of customer. The Internet has shown us the model: people can go almost anywhere they want to. But let's not confuse "The Internet" with "The Network." The global telecommunications network is bigger than the Internet, and actually contains it. It is this larger, all-containing global network that is being virtualized by network functions virtualization (NFV) and software-defined networking (SDN). Soon the flexibility and power created by this move to virtualization will spawn all sorts of new services driven by whoever wants them and is willing to pay their share for capacity. The Internet as we know it will be just one particular mode of networking. NFV and SDN can, and probably will, lead to a multiplicity of Internet-like services, both competing and collaborating, with different purposes and philosophies. Some of those exist just now, in the form of commercial, governmental and academic intranets, but we should expect more when anyone can address the network, define the necessary capabilities and use them as needed. These individuals can also sell them to others with any type of charging arrangement: charging for time or for capacity used, by content consumed, or subscription by the hour, the year or the second. And if you need a content delivery network, you can rent space on those built by others, independent of other business relationships you might have. Or you can build one yourself.

So monthly bills? Well, remember the hansom cabriolet? It's cute, but not what we need today.

What other business processes may soon become outdated? Let us know on Twitter.

More Stories By Esmeralda Swartz

Esmeralda Swartz is VP, Marketing Enterprise and Cloud, BUSS. She has spent 15 years as a marketing, product management, and business development technology executive bringing disruptive technologies and companies to market. Esmeralda was CMO of MetraTech, now part of Ericsson. At MetraTech, Esmeralda was responsible for go-to-market strategy and execution for enterprise and SaaS products, product management, business development and partner programs. Prior to MetraTech, Esmeralda was co-founder, Vice President of Marketing and Business Development at Lightwolf Technologies, a big data management startup. She was previously co-founder and Senior Vice President of Marketing and Business Development of Soapstone Networks, a developer of resource and service control software, now part of Extreme Networks.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@CloudExpo Stories
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Sanjeev Sharma Joins June 5-7, 2018 @DevOpsSummit at @Cloud Expo New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that's no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, explored how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He expla...
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to close th...
Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams. In his session at 22nd Cloud Expo | DXWorld Expo, Daniel Jones, CTO of EngineerBetter, will answer: How can we improve willpower and decrease technical debt? Is the present bias real? How can we turn it to our advantage? Can you increase a team’s effective IQ? How do DevOps & Product Teams increase empathy, and what impact does empath...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, discussed how given the magnitude of today's application ...
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
"Digital transformation - what we knew about it in the past has been redefined. Automation is going to play such a huge role in that because the culture, the technology, and the business operations are being shifted now," stated Brian Boeggeman, VP of Alliances & Partnerships at Ayehu, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
You know you need the cloud, but you're hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You're looking at private cloud solutions based on hyperconverged infrastructure, but you're concerned with the limits inherent in those technologies. What do you do?