Software-defined networking and network function virtualization are disruptive technology innovations that are gaining traction across the telecoms industry.
In recent years, they have delivered operational and investment efficiencies. The consensus is that telecom operators can expect to capture a 15 percent reduction in total cost of ownership following implementation of SDN software-defined networking) and NFV (network functions virtualisation).
While that is a decent return on investment, it is loose change compared to the drastic changes to a telecom operator’s top line and business model that these disruptive technologies can bring.
If we assume that revenue-sharing agreements between telecom operators and device manufacturers, content developers, and specialized service providers remain at current levels, the industry can expect at least 30 percent of future revenues to be driven by new, SDN and NFV-enabled streams
