Software-Defined Networking Transforms Carrier Environments
In early 2012, Intel teamed with The Beacon Group to study the evolution of Software-Defined Networking (SDN) in the communications market. In conjunction, Intel was working with several early movers to develop and test SDN concepts in a carrier environment. This paper discusses the Beacon study findings and the lessons Intel learned through their partnerships, and offers a shared opinion on the implications for market participants.
Our analysis showed that network transformation is accelerating in the carrier space. The perfect storm of growing smartphone usage, increased data demand, and continued margin pressure is creating a flawed and unsustainable business model. In the near term, capacity demand has begun to outpace carrier supply, and carriers are searching for solutions on both the revenue and cost sides of their network business model. Unless the carriers are willing to significantly increase the fees charged to users, profitability has to be achieved through a more efficient use of existing and future network investments.