Welcome!

Java IoT Authors: Pat Romanski, Liz McMillan, Elizabeth White, Yeshim Deniz, Frank Lupo

Related Topics: Containers Expo Blog, Java IoT, Linux Containers, Open Source Cloud, @CloudExpo, SDN Journal

Containers Expo Blog: Article

Network Virtualization – Who Will Prosper and Who Will Not? | Part 2

Virtualization means that everything will run on commodity hardware – the same as the rest of the commercial world

In my last blog, I looked at the evolution of technology as we move to virtualization. What will this new development mean for business models, industry developments and industry players?

Virtualization means that everything will run on commodity hardware - the same as the rest of the commercial world. No proprietary equipment, just generic devices and servers running software. Who will build the data centers? Probably the same set of companies that build data centers for everyone else. That is, not necessarily network equipment companies or phone companies.

Who will write the software? Presumably the network equipment companies, at first. But the cost of entry into a software-driven industry is much lower than the cost of entry into a hardware-dominated industry. Mass-producing software is far less expensive than mass-producing hardware, so new players will rapidly emerge and some of them will prosper. Just as likely, some of the existing players will not. An industry with thousands of large, medium and small companies has different dynamics than an industry dominated by a few giants.

Will communications service providers (CSPs) get into the software business? They understand how networks work, and the move to virtualization provides a new playing field in which CSPs stand as good a chance as any of creating new, reliable and secure software. Why shouldn't the CSPs work together in a sort of almost-open-source movement, share their products and services and reap the financial benefits?

And then who will design the networks and do the network capacity planning? Ultimately, the network will do most of that itself. Just as it is possible to write code that writes more code according to rules, it is possible to write code within the network that not only manages the traffic, but identifies when and where new capacity is needed, and installs itself in the newly activated devices. Where do those devices and servers come from? Anywhere; they are generic, standardized and commoditized.

Who will create network capacity by actually placing the building blocks in position? Some humans may do this, or maybe robots, but they don't need to work for the phone company. They could work for a sub-contractor or one of the companies that today we think of as equipment vendors. Or perhaps that is a whole new industry, in the same way house builders don't have to make bricks, or be architects, real estate agents or landlords. They just build and sell.

So who will actually own the network assets? It could be anyone, even a company that has no actual end users as customers. Virtualization, and all that goes with it, will make it possible to own network assets, and to offer those assets as capacity for others to rent. That capacity could then be used by whatever CSP needs it most at the time, and is willing to pay for it.

CSPs will both own and rent capacity, or rather their automated agents will do so on their behalf, guided by rules that will be developed initially by human coders, but which will evolve and be optimized by more software. And the fact that all network capability can be addressed by anyone with access means that we could end up with a rich network of niche relationships, with services appearing and disappearing like twinkling stars.

Users of the network today are somewhat imprisoned: they have limited choices of service providers and services. It may be in the interests of CSPs to keep it that way for a while, but ultimately the capabilities of the technology will create a completely new type of customer. The Internet has shown us the model: people can go almost anywhere they want to. But let's not confuse "The Internet" with "The Network." The global telecommunications network is bigger than the Internet, and actually contains it. It is this larger, all-containing global network that is being virtualized by network functions virtualization (NFV) and software-defined networking (SDN). Soon the flexibility and power created by this move to virtualization will spawn all sorts of new services driven by whoever wants them and is willing to pay their share for capacity. The Internet as we know it will be just one particular mode of networking. NFV and SDN can, and probably will, lead to a multiplicity of Internet-like services, both competing and collaborating, with different purposes and philosophies. Some of those exist just now, in the form of commercial, governmental and academic intranets, but we should expect more when anyone can address the network, define the necessary capabilities and use them as needed. These individuals can also sell them to others with any type of charging arrangement: charging for time or for capacity used, by content consumed, or subscription by the hour, the year or the second. And if you need a content delivery network, you can rent space on those built by others, independent of other business relationships you might have. Or you can build one yourself.

So monthly bills? Well, remember the hansom cabriolet? It's cute, but not what we need today.

What other business processes may soon become outdated? Let us know on Twitter.

More Stories By Esmeralda Swartz

Esmeralda Swartz is VP, Marketing Enterprise and Cloud, BUSS. She has spent 15 years as a marketing, product management, and business development technology executive bringing disruptive technologies and companies to market. Esmeralda was CMO of MetraTech, now part of Ericsson. At MetraTech, Esmeralda was responsible for go-to-market strategy and execution for enterprise and SaaS products, product management, business development and partner programs. Prior to MetraTech, Esmeralda was co-founder, Vice President of Marketing and Business Development at Lightwolf Technologies, a big data management startup. She was previously co-founder and Senior Vice President of Marketing and Business Development of Soapstone Networks, a developer of resource and service control software, now part of Extreme Networks.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they bu...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, will discuss how from store operations...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Datera will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera offers a radically new approach to data management, where innovative software makes data infrastructure invisible, elastic and able to perform at the highest level. It eliminates hardware lock-in and gives IT organizations the choice to source x86 server nodes, with business model option...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, will discuss some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he’ll go over some of the best practices for structured team migrat...
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that Avere Systems, a leading provider of hybrid cloud enablement solutions, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere Systems was created by file systems experts determined to reinvent storage by changing the way enterprises thought about and bought storage resources. With decades of experience behind the company’s founders, Avere got its ...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, will discuss how by using...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
SYS-CON Events announced today that CAST Software will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter ...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.