March 8, 2021

Mike Lilo

CFO

Home Blog Strategic CFOs See Operational Value in Network Cloud

Strategic CFOs See Operational Value in Network Cloud

When it comes to new technology, it needs to present a clear and significant value. For new architecture and/or new business & operational models, a typical CFO needs to weigh the benefits (in terms of CAPEX and OPEX) against the efforts required in adapting the organization for the new operational model. A “break-even” model will simply be dismissed as just “not worth the effort” for them.

Strategic CFOs See Operational Value in Network Cloud

Missing the Opportunity of Disaggregated Networks

For DriveNets Network Cloud, this approach covers many levels, as a new technology driving a new architecture and introduces a new business and operational model. At first glance, this could seem a bit overwhelming, and the “easy way out” would be to just dismiss this opportunity. But this would be a strategic error, as many CFOs have learned.

Building cloud computing networks, the essence of the DriveNets’ Network Cloud technology and architecture, brings many straight-forward benefits to the network operator. Those benefits include lower cost of infrastructure, elastic scaling of the network and service infrastructure as well as ease of innovation. This results in better TCO (i.e., reduced overall expenses) and faster time to market and time to revenue (which reflect in the operator’s top line).

This part, therefore, is fairly easy to comprehend and evaluate.

To Learn More, Download the White Paper:
DNOR - DriveNets Network Orchestrator

The Great Flexibility of Disaggregated Architecture

Once moving to the business and operational model, however, a more detailed analysis is required. The fact that the Network Cloud solution is based on a disaggregated architecture requires a different take on the engagement model. The great flexibility of the model drives a change in the engagement process, calling for separate engagement with hardware, software and, in some cases, integration vendors.

This would seem like a big headache for the procurement and operations departments but, in looking deeper, it actually brings benefits and simplification for both departments.

Moving to a shared infrastructure means the same hardware and underlying native software can serve multiple network functions (exactly like cloud infrastructure serves multiple IT functions). This means that those “multiple engagements” with hardware and software vendors should not be compared to a single engagement with a monolithic vendor, but to the many engagements with separate vendors for multiple network functions, as illustrated in the following tables:

Monolithic Approach

Network Function Function-1 Function-2 Function-3 Function-4 Function-5
HW vendor Vendor-1 Vendor-2 Vendor-3 Vendor-4 Vendor-5
SW vendor Vendor-1 Vendor-2 Vendor-3 Vendor-4 Vendor-5
Integrator Vendor-1 Vendor-2 Vendor-3 Vendor-4 Vendor-5

Network Cloud Approach

Network Function Function-1 Function-2 Function-3 Function-4 Function-5
HW vendor Vendor-1 Vendor-1 Vendor-1 Vendor-1 Vendor-1
SW vendor Vendor-2 Vendor-2 Vendor-2 Vendor-3 Vendor-3
Integrator Vendor-4 Vendor-4 Vendor-4 Vendor-4 Vendor-4

When looking at the entire network, in a more holistic view, the Network Cloud can potentially reduce the number of vendor engagements that would need to be handled by the procurement department.

Make Network Operations Simpler

Additional benefits make network operations simpler, translating them into cost reductions and revenue generation.

These benefits include fast and simple hardware qualification (as the system is based on two, compact, hardware building blocks). Fast site planning and installation leverages the footprint flexibility, simplifying site planning that has rack space and power constraint limitations.

Additional benefits are the fast and seamless transition to the Network Cloud, short maintenance windows that reduce service interruption and thus increase quality of experience and reduce churn, and, at the bottom line, much simpler on-site operations.

CFOs that think strategically can see those benefits, and choose DriveNets.

Download White Paper

DNOR – DriveNets Network Orchestrator

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