Virtualization is not just a new technology for telecom: virtualization revolutionizes the basic economics, and changes many long held assumptions about costs, what’s feasible, and how networks operate and should be operated. Or, more accurately, it holds that promise – if we collectively take the right actions. At Appledore Research Group, we often like to return to “first principles” rather than accept “common wisdom”. So, as virtualization emerges as the technology for tomorrow, and in some cases today, we elected to go back to the “why?” and figure out what virtualization can do, financially, for a business. Very briefly, our approach was to benchmark today’s networks and operations as quantitatively as is practical, and then look into the areas where virtualization had significant and even radical impact on costs. This allowed us to create a qualitative, but valid, model of the how a business could differ in a virtualized world, and what actions CSPs and suppliers must take to realize that transformation. “Follow the Money” is always good advice: A breakdown of Expenses For details, we refer readers to a pair of framework reports – “Market Forecast for Virtualized Network Infrastructure (Cloud CAPEX)”, ARG 2015 and “The Economics of Virtualized […]