Welcome!

News Feed Item

New Study Reveals: SDN Could Save Operators $9 Billion Globally in Operating Expenses by 2017

NAPERVILLE, Ill., Feb. 11, 2014 /PRNewswire/ -- A new study from Tellabs calculates the value of Software Defined Networking (SDN) in reducing mobile backhaul network expenses by dynamically managing traffic and backhaul bandwidth. Research conducted by Strategy Analytics projects that by 2017, total operating expense (OpEx) savings from SDN in mobile backhaul networks could reach $9 billion globally.

An earlier Strategy Analytics' report, "SDN Could Save Operators $4 Billion in Capital Expense by 2017," revealed the value of SDN in reducing capital expense (CapEx) in backhaul deployments. It highlighted the contribution SDN could make in helping to close the previously identified "backhaul gap." These CapEx savings derive from 5 key SDN applications for mobile backhaul networks.

In the new study, Tellabs reveals that OpEx savings from the same 5 applications are more than twice as much as the CapEx savings.

Multimedia

In fact, today's report reveals that OpEx savings are forecast to be far greater than CapEx savings every single year between now and 2017, across all 5 applications. According to the August 2013 study, CapEx savings could potentially reach $4.2 billion by 2017. Overall OpEx savings are forecast to reach almost $9 billion, or more than twice the CapEx savings, over the same timeframe.

5 Top SDN Applications Save 25% to 70% of Operating Expense

As in the previous report, Strategy prioritized the top SDN applications, based on where SDN will have the most impact on mobile backhaul. The 5 applications are Metro Aggregation/Load Redistribution, Local Breakout/Internet IXP, Small Cells, Cloud RAN and Wi-Fi Offload/Video Redirect.

Although overall OpEx savings are significant, the contributions from each application vary greatly with savings varying between 25% and 70% identified across the board. The largest single saving in OpEx will come from Wi-Fi Offload/Video Redirect. According to the research, this application could contribute a 70% saving by 2017 – increasing from $222 million in 2013 to more than $3.1 billion by 2017.

The value of OpEx savings across the 5 applications by 2017 is forecast to be:

  • Wi-Fi Offload/Video Redirect - $3,144 million
  • Cloud RAN - $2,173 million
  • Local Breakout/Internet IXP - $1,832 million
  • Metro Aggregation/Load Redistribution - $1,219 million
  • Small Cells - $591 million.

Potential OpEx savings for each application differ greatly from CapEx savings. For instance, in the CapEx report, Metro Aggregation/Load Redistribution ranked first in CapEx savings with a $1,116 million savings by 2017. Yet it ranks only fourth in OpEx savings.

Asia Pacific Will Witness the Biggest Impact

As identified in the report, the amount of OpEx saved through SDN will vary greatly by region. Asia Pacific, the region expected to adopt all-IP networks very aggressively, is predicted to gain the greatest OpEx savings from SDN – reaching 37% by 2017.

Estimated OpEx savings by region in 2017 are forecast to be:

  • Asia-Pacific - $5,619 million
  • North America - $1,263 million
  • Western Europe - $1,253 million
  • Middle East & Africa - $368 million
  • Central & Eastern Europe - $255 million
  • Caribbean & Latin America - $201 million.

The earlier report demonstrated that CapEx savings from SDN for backhaul were significant. However, the value of SDN in helping operators to save on the ongoing provisioning and management of backhaul capacity is far larger.

"Earlier, we highlighted the key role of SDN in closing the mobile backhaul gap," said Stu Benington, Tellabs director, technology and strategy. "Now we can show that on top of the CapEx savings, SDN can cut OpEx dramatically and preserve operator margins in backhaul networks."

At Mobile World Congress 2014, Tellabs will demonstrate a new dynamic SDN application that enables backhaul networks with microwave links to adapt automatically to changing weather conditions.

About Tellabs, Coriant and Marlin Equity Partners — Marlin Equity Partners, a global investment firm with over $2.6 billion in capital under management, has announced the formation of a single leadership and organizational structure for its Coriant and Tellabs portfolio companies. With a focus on customer value creation, this move represents the first step in a plan to merge the industry-leading networking suppliers under the Coriant brand.

Tellabs innovations advance smart networks and help our customers succeed. That's why 80% of the world's top communications service providers choose our mobile backhaul, packet optical, business and services solutions and applications. We help them get ahead by adding revenue, reducing expenses and optimizing networks. www.tellabs.com

SOURCE Tellabs

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
SYS-CON Events announced today that Silicon India has been named “Media Sponsor” of 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. Published in Silicon Valley, Silicon India magazine is the premiere platform for CIOs to discuss their innovative enterprise solutions and allows IT vendors to learn about new solutions that can help grow their business.
Join us at Cloud Expo June 6-8 to find out how to securely connect your cloud app to any cloud or on-premises data source – without complex firewall changes. More users are demanding access to on-premises data from their cloud applications. It’s no longer a “nice-to-have” but an important differentiator that drives competitive advantages. It’s the new “must have” in the hybrid era. Users want capabilities that give them a unified view of the data to get closer to customers and grow business. The...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
"Loom is applying artificial intelligence and machine learning into the entire log analysis process, from start to finish and at the end you will get a human touch,” explained Sabo Taylor Diab, Vice President, Marketing at Loom Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists loo...
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, highlighted the current challenges of these transformative technologies and shared strategies for preparing your organization for these changes. This “view from the top” outlined the latest trends and developments i...