Insight: The Business Case for vCPE

Posted by Mae Kowalke on Monday, November 16, 2015 with No comments

The push toward virtualizing networks has three main business case drivers: 1) CapEx reduction, 2) OpEx reduction, and 3) service agility/improved QoE. These are compelling enough that even for operators taking a wait-and-see approach to virtualization in general, they can start testing out NFV at their service edge with relatively low risk, low complexity, and a tantalizing ROI.

By leveraging vCPE solutions that integrate NFV, while at the same providing a path to SDN and network automation and orchestration, operators can overcome the challenges of lengthy order-to-cash (O2C) and trouble-to-resolution (T2R) cycle times without committing to a complete network transformation:

  • Eliminate complex and manual service delivery processes, including network and physical CPE configuration, service provisioning, CPE installation/replacements, network operators center (NOC) support, and truck rolls. 
  • Reduce deployment time to a matter of hours, cutting O2C cycle costs by up to 80%.
  • Handle fewer complaints by reducing mean time to repair and conducting fewer site visits--for a savings of 61% in T2R processes. 
  • Reduce CPE supply management costs by 42% with reusable, cost-efficient COTS x86 servers and NFV-based vCPE modules (like smart SFPs) for faster/lower-priced VNF implementation without compromising performance or monitoring precision for SLA-grade services. 
  • Lower data center OpEx (power, space, cooling) through consolidation and standardization. 
Cable operators in particular—especially those focusing on commercial services—have some pretty compelling motivators to adopt vCPE. Analysys Mason recently predicted that cable operators who take the lead by becoming first in their markets to introduce enterprise vCPE are likely to enjoy 156% ROI and $1.1 billion business benefits over a 5-year migration period.
ROI analysis conclusions from Analysys Mason

How is that possible? Through upselling and cross-selling new SDN-based services (including SD-WAN offerings), and leveraging OSS automation, customer portals for self-care and self-provisioning, for example. NFV/SDN enabled services might include adding endpoints or bandwidth to VPN or WAN configurations, data center access services, and security-as-a-service, to name only a few value-added options.


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