SDN/NFV to boost cloud service profit margins

Software defined networking (SDN) and network function virtualisation (NFV) presents UK Infrastructure Services (IS) suppliers with the opportunity to radically alter the way they provide cloud hosted services to their public and private sector customers. But perhaps more importantly, it may also help them strip cost out of their provisioning operations to improve tight profit margins being squeezed by demand for ‘lowest cost’ infrastructure services.

In this research note we examine some of the early commercial uses of the technology and how it can be applied to improve the margins of cloud delivered services. We also layout some of the challenges suppliers face as they move deeper into this relatively immature market.

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