Over the last decade, Network Functions Virtualization (NFV) has rapidly evolved as one of the most disruptive and value-creating technologies across communication networks and cloud infrastructure.
In this expert guide, we will dive deep into all key technical and business aspects of NFV:
- Birth of NFV and Key Milestones
- Components of NFV Architecture
- Inner Workings and Mechanisms
- Drivers and Requirements for Adopting NFV
- Use Cases and Applications by Industry
- Quantified Business Benefits
- Vendor Landscape and Comparison
- Future Roadmap for NFV Advancements
- Recommended Learning Resources
So let‘s get started.
Birth of NFV and Key Developments
The concept of NFV was first formulated in October 2012 by seven major telecom operators who published an industry whitepaper laying out the vision. This "Call for Action" kickstarted industry investment and initiatives around developing commercial-grade NFV platforms.
Over the next decade, rapid innovations were sparked through collaboration between telecom operators, equipment providers and standards bodies like ETSI, TMForum among others.
Here is a timeline of key developments:
- 2014 – ETSI forms Industry Specification Group for NFV to drive standards evolution
- 2016 – Linux Foundation launches Open Source MANO development project
- 2017 – Multiple open source NFV projects launched to accelerate adoption
- 2018 – TM Forum launches catalyst projects around NFV adoption by operators
- 2020 – Emergence of production grade NFV deployments in 5G standalone networks
- 2022 and beyond – Continued focus on cloud native transformation, intelligent automation and security
As per industry analysis, both telecom and enterprise operators are aggressively shifting budgets towards virtualization and cloud technology with over 25% of infrastructure spend expected to move to NFV/SDN initiatives by 2025.
Now that we have some context on NFV history and growth trajectory, let‘s understand how the architectural components come together to enable the technology.
Components of NFV Architecture
The complete NFV architecture comprises four key segments:
1. Virtualized Network Functions
VNFs represent software implementations of traditional network functions like firewall, router, load balancer etc. They are packaged as:
- Virtual Machine images – To run via hypervisors
- Containers – For maximum portability using Docker, Kubernetes
VNFs consume virtual compute, storage and network provided by NFVI layer to deliver identical network capabilities as hardware appliances.
They utilize standardized templates for onboarding and lifecycle management driven by NFV MANO components.
2. NFV Infrastructure
NFVI refers to the consolidation of underlying physical resources – compute, storage and network into virtual resource pools using abstraction and partitioning layers:
- Hardware resources – Servers, storage filers, network switches
- Virtualization layer – Hypervisors, container engines
- Virtualized resources – Assigned to hosted VNFs
NFVI provides the foundation for delivering network functionality without dependency on dedicated hardware appliances.
3. NFV Management and Orchestration
MANO refers to automation, analytics and orchestration frameworks that enable:
- Onboarding of VNFs from catalogs
- Placement across best fit NFVI resources
- Elastic capacity expansion and auto-healing
- Closed loop optimization across services and infrastructure
This is enabled through 3 key management components:
- Orchestrator – Govern service and resource orchestration
- VNF Manager – Manage lifecycles of VNF instances
- VI Manager – Manage capacity of virtualized infrastructure
4. OSS/BSS and Operational Systems
NFV environments also integrate with legacy systems including:
- Operations Support Systems (OSS)
- Business Support Systems (BSS)
- IT systems like monitoring, security, analytics etc.
This complete architectural framework delivers the full set of capabilities for a next-gen agile, efficient and automated network built entirely with software.
Now that we have seen how NFV architecture looks from the outside, let‘s open the hood and see what‘s driving it inside!
Inner Workings and Mechanisms
There are some key technical innovations that enable NFV environments to deliver flexibility along with resilience and scale:
1. Abstracted Infrastructure
NFVI provides a pool of hardware resources that can be compartmentalized into isolated virtual slices using hypervisors and container engines. This allows abstraction and prevents VNFs from being locked to specific hardware components.
The virtualization layer masks the heterogeneity of underlying infrastructure – VNFs are oblivious whether they run on x86 servers or ARM processors for instance.
2. Software Network Functions
VNFs are simply workload images pre-packaged with an entire network function so they mimic dedicated hardware but without the constraints.
For instance a Virtual Router encapsulates routing software, control plane logic, associated configs and policies. It abstracts the routing hardware itself.
3. Dynamic Service Chaining
MANO allows stitching individual VNFs into complete network services chains using overlay networks and policies. For instance chaining – Load Balancer + WAF + DNS together as an application delivery service.
These service chains can reshape themselves reacting to network conditions by triggering auto-scaling, telemetry gathering, self-healing workflows etc.
So in summary, NFV makes uses of standard virtualization building blocks but brings them together in a unique formula optimized for running network operations at cloud speed and scale.
Drivers and Requirements for Adopting NFV
What benefits does this specialized approach deliver for operators and how is it superior to legacy network infrastructure?
Here are the key business and technology drivers for NFV adoption:
1. Substantially Lower TCO
NFV reduces overall total cost of ownership by improving capacity utilization and removing dependency on proprietary hardware:
- Consolidating appliances servers, storage arrays etc. improves utilization by ~65%
- Scaling horizontally with cheap COTS servers avoids capacity stranding
- No vendor lock-in or upgrade cycles tied to appliances
Stanford university shared quantified results demonstrating up to 68% cost savings for an operator after transitioning to NFV.
2. Faster Innovation Velocity
New network features can be introduced without network hardware upgrades or replacement. VNFs allow implementing new protocols, stack capabilities etc. through software enhancements.
Operators gain rapid time-to-market running innovation cycles similar to web-scale players. DevOps culture thrives unlocking creativity.
3. Inventory and Operations Simplification
Instead of configuring hundreds of classes of appliances, NFV simplifies overall operations complexity. VNF lifecycles, infrastructure capacity etc. can be automated across heterogeneous hardware.
Operators deploy new VNFs or enhance capacity by just allocating additional cheap servers. This reduces truck rolls and manual errors by almost 90% as per industry analysis.
4. Service Agility and Evolution
Changing business requirements can be met by just re-programming network functions. New sites get added by spinning software loads instead of installing routers or firewalls. Services can be composed combining best of breed VNFs from ecosystem partners.
Cloud-like version control brings structured coordination across network software development and infrastructure deployment teams.
5. Scalability across Domains
Capacity can be expanded easily by adding extra compute resources instead of procuring specialized hardware with long lead times. Both centralized data centers and distributed edge sites scale quickly through additional software loads at each location.
These benefits make a strong case for operators across telecom, cloud and enterprise segments to gain considerable advantages shifting to NFV.
Next let‘s see how they apply NFV to solve real world challenges.
Use Cases and Industry Applications
The flexibility of delivering identical network operations through software has catalyzed adoption across telecom operators, cloud providers and enterprises with large scale infrastructure:
1. Agile 5G Networks and Edge Computing
5G standalone networks are built ground up on cloud infrastructure with containerized network functions. NFV allows core functions to scale seamlessly and shrink wrap at the edge while meeting stringent performance demands.
It will also help optimize cost and performance delivering emerging 5G use cases leveraging edge computing and network slicing paradigms.
2. Enhanced Broadband Services
Whether for fixed line broadband or cable operators, NFV unlocks ability to rapidly rollout value added services withperformance guarantees right at the customer edge location:
- Content caching and acceleration
- Secure SD-WAN services
- Network analytics for traffic optimization
- Low latency gaming or AR/VR applications
3. Industrial and Private Networks
Factory floors, energy utilities, transportation services or stadiums require purpose built network infrastructure with edge computing. NFV uniquely suits such cases requiring localized, secure and high performance connectivity across IoT environments.
4. Multi-Cloud Interconnect
Hyperscale operators like AWS Direct Connect run massive NFV deployments to enable exchange of terabits of traffic across regions andAvailability Zones. The tech allows dynamically steering traffic between data centers or availability zones reacting to demand shifts or resource constraints.
5. Modern Virtualized Enterprises
Digital Native companies are big consumers of SD-WAN, virtual CPE and secured multi-cloud connectivity services offered by telcos and managed service operators.
NFV allows providers to accelerate deployment and elastically scale capacity as enterprise customers embrace cloud models for running distributed operations.
This shows how NFV applicability has rapidly grown from its early days in 2012 as networks transform driven by 5G, cloud adoption and digital services innovation.
Let‘s look at quantified metrics proving how this translates to bottomline impact.
Quantified Business Benefits with NFV
Beyond agility and innovation advantages, NFV also directly contributes to measurable business KPI improvements:
1. Reduced TCO and OPEX
AT&T highlighted how transitioning network functions to the cloud decreased TCO by over 75% compared to legacy appliances while also enhancing reliability.
Orange Business Services accelerated service delivery seeing 50% savings in operational costs via process automation with NFV management.
2. Multi-Fold Efficiency Gains
Singtel reported improving network capacity utilization from less than 30% to over 70% moving workloads from fixed function appliances to pooled virtualized infrastructure.
China Mobile achieved close to 3 times improvement in resource efficiency after their first year of 5G standalone operations driven by NFV.
3. Enhanced Business Velocity
SK Telecom showcased launching innovative sports live streaming services with geo-targeted dynamic capacity allocation in under two months using cloud infrastructure.
The rollout would have taken over nine months in their legacy network involving hardware deployments.
This data shows how NFV drives material topline and bottomline improvements simultaneously across user experience, profitability, innovation velocity and competitive differentiation KPIs.
Now that we have covered NFV concepts in detail along with real world adoption, let‘s compare how leading vendors differentiate in the space to guide adoption.
Comparing Leading NFV Platform Vendors
Multiple vendors offer NFV platforms targeting either telecom operators, enterprises or hyperscaler cloud providers based on respective use case maturity:
| Provider | Key Highlights | Target Segment |
|---|---|---|
| VMware | Telco + enterprise expertise, consistent infrastructure across core/edge | Telecom and Enterprise |
| Cisco | Breadth across network/cloud, partnerships across service providers | Telecom and Enterprise |
| Nokia | Cloud native, open source software suits 5G operators | 5G Telecom operators |
| Ericsson | 5G expertise with cloud native focus, optimized for scale | 5G Telecom operators |
| AWS | Aligned with AWS cloud infrastructure, optimized connectivity | Hyperscalers and cloud builders |
| Microsoft | Azure ecosystem breadth combined with teleco optimized capabilities | Enterprises and cloud builders |
| Red Hat | Open source leadership, emerging cloud-native teleco capabilities | 5G Telco operators |
| Mavenir | Cloud-native and open interface focus | Telecom operators |
| Affirmed Networks | Specialists in cloud-native evolved packet core for 5G | 5G Telecom operators |
| Metaswitch | White label VNFs and uCPE access expertise | Telecom operators |
This landscape continues to evolve with trends like open interfaces, expanded use of containers and progress towards unified management across hybrid networks.
Next let‘s look at what‘s upcoming.
Future Roadmap for NFV Advancements
While powerful in present forms, continued innovation areas for NFV platforms include:
1. Multi-Cloud Management
Manage hybrid networks and multi-cloud infrastructure holistically delivering intelligent workload placement, visibility and governance across domains.
2. AI Ops and Observability
Expand monitoring from infrastructure to apps, utilzing AIOps for proactive auto-remediation. Provide rich telemetry for closed loop optimization.
3. 5G Edge Network Slicing
Standards evolution for network slicing, function libraries and toolkits to customize 5G edge delivery efficiently catering to myriad low latency use cases.
4. DevSecOps Integration
Embed security capabilities natively into CNF workflows securing infrastructure, supply chain etc. Automate policy controls and defence.
5. Digital Business Automation
Expand MANO capabilities for model driven operations, intent based networking covering business KPIs and integrated OSS/BSS fulfillment.
As NFV platform scope expands to cover above areas, they get closer to manifesting the original 2012 vision to transform networks into responsive, sentient systems matching cloud speed and scale.
For those exploring opportunities in this space, let‘s look at educational resources for deeper insight.
Recommended Learning Resources
Here are expert authored courses and books to take you on a guided learning journey as per your interest areas:
1. Network Programmability and Automation
2. Orchestrating and Automating Security for DevOps
3. Learning Paths: NFV Transformation Journey from Virtualization to Cloud Native
4. ETSI NFV: Core Network Transformation for 5G
5. 5G Core Networks: Powering Digitalization
6. Cloud Native Transformation: Practical Patterns for Innovation
7. Kubernetes Patterns: Reusable Elements for Designing Cloud-Native Applications
8. Mastering Cloud Native Infrastructure: Build, deploy, and manage modern scalable infrastructure
9. Virtual Cloud Networks: Your Guide to the Future of Cloud Computing
10. Fundamentals of 5G Mobile Networks
We hope this guide helped you gain end-to-end perspective on network functions virtualization, its inner workings along with business and technology value it unlocks as modern infrastructure continues its transformation journey to cloud operational models.
