Welcome!

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.


Latest Stories
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Transformation Abstract Encryption and privacy in the cloud is a daunting yet essential task for both security practitioners and application developers, especially as applications continue moving to the cloud at an exponential rate. What are some best practices and processes for enterprises to follow that balance both security and ease of use requirements? What technologies are available to empower enterprises with code, data and key protection from cloud providers, system administrators, inside...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
Consumer-driven contracts are an essential part of a mature microservice testing portfolio enabling independent service deployments. In this presentation we'll provide an overview of the tools, patterns and pain points we've seen when implementing contract testing in large development organizations.
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
DXWorldEXPO LLC announced today that "IoT Now" was named media sponsor of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
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.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...