SYS-CON MEDIA Authors: Roberto Medrano, Dmitriy Stepanov, Gilad Parann-Nissany, Srinivasan Sundara Rajan, Sean Houghton

News Feed Item

New Study Reveals: SDN Could Save Operators $9 Billion Globally in Operating Expenses by 2017

NAPERVILLE, Ill., Feb. 11, 2014 /PRNewswire/ -- A new study from Tellabs calculates the value of Software Defined Networking (SDN) in reducing mobile backhaul network expenses by dynamically managing traffic and backhaul bandwidth. Research conducted by Strategy Analytics projects that by 2017, total operating expense (OpEx) savings from SDN in mobile backhaul networks could reach $9 billion globally.

An earlier Strategy Analytics' report, "SDN Could Save Operators $4 Billion in Capital Expense by 2017," revealed the value of SDN in reducing capital expense (CapEx) in backhaul deployments. It highlighted the contribution SDN could make in helping to close the previously identified "backhaul gap." These CapEx savings derive from 5 key SDN applications for mobile backhaul networks.

In the new study, Tellabs reveals that OpEx savings from the same 5 applications are more than twice as much as the CapEx savings.

Multimedia

In fact, today's report reveals that OpEx savings are forecast to be far greater than CapEx savings every single year between now and 2017, across all 5 applications. According to the August 2013 study, CapEx savings could potentially reach $4.2 billion by 2017. Overall OpEx savings are forecast to reach almost $9 billion, or more than twice the CapEx savings, over the same timeframe.

5 Top SDN Applications Save 25% to 70% of Operating Expense

As in the previous report, Strategy prioritized the top SDN applications, based on where SDN will have the most impact on mobile backhaul. The 5 applications are Metro Aggregation/Load Redistribution, Local Breakout/Internet IXP, Small Cells, Cloud RAN and Wi-Fi Offload/Video Redirect.

Although overall OpEx savings are significant, the contributions from each application vary greatly with savings varying between 25% and 70% identified across the board. The largest single saving in OpEx will come from Wi-Fi Offload/Video Redirect. According to the research, this application could contribute a 70% saving by 2017 – increasing from $222 million in 2013 to more than $3.1 billion by 2017.

The value of OpEx savings across the 5 applications by 2017 is forecast to be:

  • Wi-Fi Offload/Video Redirect - $3,144 million
  • Cloud RAN - $2,173 million
  • Local Breakout/Internet IXP - $1,832 million
  • Metro Aggregation/Load Redistribution - $1,219 million
  • Small Cells - $591 million.

Potential OpEx savings for each application differ greatly from CapEx savings. For instance, in the CapEx report, Metro Aggregation/Load Redistribution ranked first in CapEx savings with a $1,116 million savings by 2017. Yet it ranks only fourth in OpEx savings.

Asia Pacific Will Witness the Biggest Impact

As identified in the report, the amount of OpEx saved through SDN will vary greatly by region. Asia Pacific, the region expected to adopt all-IP networks very aggressively, is predicted to gain the greatest OpEx savings from SDN – reaching 37% by 2017.

Estimated OpEx savings by region in 2017 are forecast to be:

  • Asia-Pacific - $5,619 million
  • North America - $1,263 million
  • Western Europe - $1,253 million
  • Middle East & Africa - $368 million
  • Central & Eastern Europe - $255 million
  • Caribbean & Latin America - $201 million.

The earlier report demonstrated that CapEx savings from SDN for backhaul were significant. However, the value of SDN in helping operators to save on the ongoing provisioning and management of backhaul capacity is far larger.

"Earlier, we highlighted the key role of SDN in closing the mobile backhaul gap," said Stu Benington, Tellabs director, technology and strategy. "Now we can show that on top of the CapEx savings, SDN can cut OpEx dramatically and preserve operator margins in backhaul networks."

At Mobile World Congress 2014, Tellabs will demonstrate a new dynamic SDN application that enables backhaul networks with microwave links to adapt automatically to changing weather conditions.

About Tellabs, Coriant and Marlin Equity Partners — Marlin Equity Partners, a global investment firm with over $2.6 billion in capital under management, has announced the formation of a single leadership and organizational structure for its Coriant and Tellabs portfolio companies. With a focus on customer value creation, this move represents the first step in a plan to merge the industry-leading networking suppliers under the Coriant brand.

Tellabs innovations advance smart networks and help our customers succeed. That's why 80% of the world's top communications service providers choose our mobile backhaul, packet optical, business and services solutions and applications. We help them get ahead by adding revenue, reducing expenses and optimizing networks. www.tellabs.com

SOURCE Tellabs

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to th...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The term culture has had a polarizing effect among DevOps supporters. Some propose that culture change is critical for success with DevOps, but are remiss to define culture. Some talk about a DevOps culture but then reference activities that could lead to culture change and there are those that talk about culture change as a set of behaviors that need to be adopted by those in IT. There is no question that businesses successful in adopting a DevOps mindset have seen departmental culture change, ...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, a...
SYS-CON Media announced that Centrify, a provider of unified identity management across cloud, mobile and data center environments that delivers single sign-on (SSO) for users and a simplified identity infrastructure for IT, has launched an ad campaign on Cloud Computing Journal. The ads focus on security: how an organization can successfully control privilege for all of the organization’s identities to mitigate identity-related risk without slowing down the business, and how Centrify provides ...
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo – to be held June 9-11, 2015, at the Javits Center in New York City, NY – is now accepting Hackathon proposals. Hackathon sponsorship benefits include general brand exposure and increasing engagement with the developer ecosystem. At Cloud Expo 2014 Silicon Valley, IBM held the Bluemix Developer Playground on November 5 and ElasticBox held the DevOps Hackathon on November 6. Both events took place on the expo fl...
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will w...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big D...
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrateg...
Fundamentally, SDN is still mostly about network plumbing. While plumbing may be useful to tinker with, what you can do with your plumbing is far more intriguing. A rigid interpretation of SDN confines it to Layers 2 and 3, and that's reasonable. But SDN opens opportunities for novel constructions in Layers 4 to 7 that solve real operational problems in data centers. "Data center," in fact, might become anachronistic - data is everywhere, constantly on the move, seemingly always overflowing. Net...