According to research commissioned by Amdocs (NASDAQ:DOX) and conducted by Analysys Mason on video content delivery network (CDN) virtualization, network functions virtualization (NFV)-enabled multiscreen, 4K video services, combined with revenue from cloud-based DVR upsell, can generate up to $2.1 billion in benefits over a five-year period.
The study indicated that TV Everywhere and the introduction of new HD formats - 4K/8K/high-dynamic range (HDR) - content are driving cable and other video service providers to upgrade their video networks from legacy systems to NFV/SDN cloud-enabled networks.
Among the findings:
- Deployment of a Virtual CDN can reduce costs by up to 61%.
- Virtualization can reduce order-to-cash costs by 77% through faster provisioning and activation.
- Virtual probes will need to be deployed to monitor traffic that flows over virtual network interfaces in NFV/SDN video networks; these probes can reduce costs by 35% and enable a 20% improvement in bandwidth and capacity management.
- Virtual probes can reduce time to resolve network problems by 59% through closed-loop automation and network self-healing.
"This is one of the first in-depth business cases that looks at the impact of virtualization on critical service delivery platforms," said Gorkem Yigit, lead analyst for the Service Delivery Platforms program at Analysys Mason. "The research, based on in-depth service provider interviews, highlighted the potential benefits virtualization brings. Not only is there a positive financial business case, but virtualization improves network efficiency and capacity management - while also offering the opportunity to improve customer experience, improve retention and reduce churn. It was clear that this is a hot topic within the industry."
