NFV and Cloud Driving Changes in Core Network Licensing Models

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As telecom operators move towards NFV, SDN and cloud architectures, licensing models will need to adapt to new deployment methods

One of the greatest advantages of network functions virtualization and cloud network architectures is the ability for network operators to dynamically scale the capacity of their networks to better mirror demand without having a significant amount of capacity laying dormant, waiting for busy-hour spikes in traffic. With NFV/cloud deployments, capacity changes based on need. All of the efficiency offered by elastic demand would disappear if the capacity was licensed in a traditional manner. Therefore, there needs to be licensing and revenue models that reflect this new reality.

For decades, networking and communications equipment consisted of physical “boxes” or nodes, often times with physical interfaces or ports that denominated the capacity associated with the equipment. Capacity was purchased accordingly:…

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