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VMware moves to telecom with new NFV initiative

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The  announcement includes the general availability of the VMware vCloud NFV platform, a new VMware Ready for NFV accreditation program and new carrier-grade services delivered by VMware and VMware partners. 

VMware has announced new network functions virtualization (NFV) offerings to help communications services providers (CSPs) accelerate their implementations of NFV. The  announcement includes the general availability of the VMware vCloud NFV platform, a new VMware Ready for NFV accreditation program and new carrier-grade services delivered by VMware and VMware partners.

Communication Service Providers (CSPs) are transforming their businesses with NFV that helps them lower costs considerably and enables rapid and agile service innovation. In doing so, they aim to reverse the trend of margin erosion driven by the high cost of infrastructure and lack of service differentiation. Two primary models of NFV deployment have emerged, one based on custom software stacks and the other based on a common virtualization platform. A recent whitepaper published by ACG Research(1) concludes that in the long run the common platform model advocated by VMware has much more agility and cost savings at scale.

“A common platform approach supports a sustainable business model and is the only approach that breaks the linear connection between growth and cost, freeing operators to innovate at speed and scale,” said Michael Kennedy, principal analyst for ACG Research. “The low-cost NFV nodes of the common platform and ability to produce sustained labor productivity and asset efficiency gains are shown to achieve payback in under a year and produce more than 350 percent ROI over five years.”

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