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
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
Deploying applications in hybrid cloud environments is hard work. Your team spends most of the time maintaining your infrastructure, configuring dev/test and production environments, and deploying applications across environments – which can be both time consuming and error prone. But what if you could automate provisioning and deployment to deliver error free environments faster? What could you do with your free time?
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...