Business Case Analysis on Hewlett Packard Enterprise SDN/NFV Based Approach to Gi-LAN Services

ACG conducted an analysis of a typical scenario that a service provider faces when migrating to a VMO based Gi LAN network to expand network scale. The scenario assumes an existing Gi LAN infrastructure and the choice to continue with PMO versus a VMO based deployment. The study found a reduction of TCO level, but more importantly a substantial gain in revenue volume based on only two new services (audio/video streaming and fee-based Apps) over five years as a result of faster time-to-market for a “new service” creation (32 percent of the time it would take to deploy the same services relative to the PMO solution). The study also found that per increase in scaling of new services for VMO, an additional cumulative revenue of $27 million can be realized for every 50,000 subscribers that sign up with SP’s increased service portfolio. For every 3 percent margin of error in traffic volume forecast, close to $1.3 million was wasted per over-dimensioning the network infrastructure.

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