The Future of VirtualizationRoz Roseboro, Heavy Reading

Presenters

• Moderator: Roz Roseboro-Heavy Reading

• Panelists:

• Martin Bäckstrom-Ericsson

• Toby Ford- AT&T

• Deng Hui-China Mobile

• Ashiq Khan- NTT DOCOMO

• Jéhanne Savi- Orange

The Future of Virtualization Project

What? • An on-going research project that will, for the first time, define

the scope of the business opportunity presented by virtualization; provide a realistic timeline for its deployment; and deliver a comprehensive taxonomy of the vendors, CSPs, open standards and people that are fundamental to building the new global, virtualized communications economy

Why?• The entire communications industry is teetering on the brink of

an incredibly disruptive revolution, one driven by virtualization, open-source, white-box deployments and OTT service delivery

The Future of Virtualization Project

How? • Creation of a unique, comprehensive, searchable taxonomy of

the entire virtualization ecosystem; and a series of indexes tracking progress in deploying virtualization, developed through cooperation with the world’s leading CSPs

Who?• Directed by: Light Reading and Heavy Reading

• Sponsored by: Cisco, Ericsson, Intel and Oracle

• www.virtuapedia.com

Identifying Functions to Virtualize

0%

10%

20%

30%

40%

50%

60%

All Most Some None

How far along is your company in identifying the functions it plans to virtualize by 2020?

Source: Light Reading, May 2016, n=47

Time Table for Function Identification

We’ve already done this, 4%

By mid-2016 at the latest, 2%

By end of 2016, 21%

In 2017, 30%

In 2018, 23% Don’t know / Not sure, 19%

We’ve already done this By mid-2016 at the latest By end of 2016

In 2017 In 2018 Don’t know / Not sure

When do you expect to identify all of the functions you plan to virtualize by 2020?

Source: Light Reading, May 2016, n=47

Confidence in Virtualization Time Table

Extremely confident, 13%

Mostly confident, 62%

Slightly confident, 15%

Not confident at all, 11%

Extremely confident Mostly confident Slightly confident Not confident at all

How confident are you that your company will meet its time table for testing and deploying virtualized functions in its high-priority areas?

Source: Light Reading, May 2016, n=47

Status of High-Priority Virtualization Targets

0%

5%

10%

15%

20%

25%

30%

None Less than 10% 10% to 25% 25% to 50% 50% to 75% More than 75%

Of the high-priority functions that your company now plans to virtualize over the next 24 months, how many has your company started development work on?

Source: Light Reading, May 2016, n=45

Time Table for Live Production

11%7%

22%

38%

9%4%

9%

2%2%

11%

29%

31%

11%

13%2%2%

0%

11%

27%

40%18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Already have Mid-2016 End 2016 End 2017 End 2018 2019 or later Don’t know

at least 20% at least 50% All

When do you expect to have 20%, 50% and ALL of those high-priority virtualized functions in live production networks?

Source: Light Reading, May 2016, n=45

Time Table to Complete Virtualization

0%

5%

10%

15%

20%

25%

30%

35%

40%

By end of 2018 2019-2020 2021-2022 2023-2025 2026 or later

When do you expect your company to complete its ENTIRE virtualization program?

Source: Light Reading, May 2016, n=45

Time Table for Capex Decline

0%

5%

10%

15%

20%

25%

In 2016 In 2017 In 2018 In 2019 In 2020 2021 or later Not for thenext 10 years at

least

When do you think your capex spending on virtualization will level off or begin to decline?

Source: Light Reading, May 2016, n=45

Time Table for Opex Impact

0%

5%

10%

15%

20%

25%

In 2016 In 2017 In 2018 In 2019 In 2020 2021 or later Not for thenext 10 years at

least

When do you expect virtualization to lower your company's overall opex by 10%?

Source: Light Reading, May 2016, n=45

Discussion