|By Esmeralda Swartz||
|April 7, 2014 09:45 AM EDT||
A recent post by John Wilmes on the TM Forum website caught my eye for drawing a parallel between the Uber car service business model and the telecom service provider business model as network functions virtualization (NFV) becomes a reality. Wilmes uses this metaphor to remind us of the potential value of dynamic pricing as a tool in carrier efforts to match supply to demand. He also cautions service providers to be careful how they sell the message of dynamic pricing to their customers. So far, so good.
However, this gave me pause: "NFV will let them [operators] create more of almost any part of their infrastructure on the fly, and turn it off when no longer needed, but that too comes at a price - one that is proportionately much higher than what Uber faces. While Uber needs only to make minimal investments in drivers who furnish their own cars, operators also have to buy the ‘cars' up front, or at least reserve them from infrastructure providers."
The message seems to be that customers may face a future of higher prices, supply shortages or both, if surge pricing takes over thanks to NFV. This rather surprised me for two reasons. First, taxis and buses are more efficient in their use of road and energy resources than cars are, even if we still like to drive our own cars sometimes. Similarly, MetraTech became actively involved in the European Telecommunications Standards Institute (ETSI) NFV program mainly because we believe that NFV would result in a dramatically more efficient deployment of network resources and efficient resource allocation should, overall, reduce costs. Services would now be deployed in a cloud-like fashion, making customers happy and providing service providers with new revenue streams. Secondly, my experience is that, despite the small commotion over Uber's surge pricing plans, those of us who use Uber recognize that the system has made it easier and cheaper to get a cab in some locations. According to the drivers I have spoken to, they're driving more and waiting less, so they're more productive. Sounds like a win-win to me.
Wilmes' Uber metaphor suggests we think of Uber, the company, as the service provider, and the car owner and drivers who are contracted to Uber as being the equivalent of network elements, providing transportation from location to location. We could recast the metaphor, and perhaps come to a different conclusion. The car owner and drivers are in fact the service providers, and Uber is an agency that links potential customers to service providers more efficiently. The drivers, in fact, may not own their vehicles, and for some, the optimal business model is to lease a vehicle and set up a maintenance contract with the leasing company, just like bus companies and airlines do.
Perhaps in an NFV-driven world there could be many service providers - both small and large companies - that operate geographically, similar to taxi drivers in the Uber model. The service providers lease the technology from other businesses, whose job is to invest in the infrastructure, build it and run it, selling space in the system to all-comers who can then repurpose the technology at will, according to changing end-customer demands. And where is the future equivalent of Uber in this scenario? We need to think of Uber, not so much as a service provider to end users, but as an agent - a service provider to the service providers who serve the end customers.
Since we are talking about agents, let's remember that as the Internet of Things evolves, agents will effectively be apps that serve both humans and machines. Now, there's a coincidence. What is Uber? It's actually an application that allows end users and service providers to connect. Uber, the company, makes money when people use their app, which represents an old and comfortingly familiar business model.
There is a pleasing symmetry here. Just as chunks of technology in an NFV-driven network can have transient lives in different roles, end users and their service providers will have transient relationships that will last just as long as they are needed. This uber-flexibility, not just of hardware, but of business relationships, will create a competitive market that should benefit customers greatly. On the other hand, perhaps service providers will have a tough time for a period, just as traditional taxi companies stumbled for a time, attempting to use regulation to preserve their old business models instead of embracing the new.
The fun of thinking of the future in this way is that when we try to connect the dots from the present to the future, we can easily come up with something of a tangle. In a world of NFV (and software-defined networking [SDN] too, of course) we cannot easily map the businesses and business models of today onto the possible business models of tomorrow. Whatever we dream up could be wrong. But the biggest mistake of all is to assume that things stay unchanged.
Wilmes follows up his gloomy prediction with this thought: "And the business and technical agility that they need to amortize those costs more quickly with dynamic pricing is also expensive to acquire and maintain."
Perhaps this is what underpins his gloom: keeping track of NFV is going to be difficult and expensive. I have good news for him. Billing systems that enable dynamic pricing across a web of complex business relationships are already here, and when NFV is widely deployed, those systems, including MetraNet will have the industrial power, precision and scalability to handle whatever financial transactions NFV can throw at us. None of this will be trivially easy, but NFV itself is not a trivial exercise. If it were, we would have done it years ago, just like we would've developed Uber back when we still had horse-drawn cabs - if only we'd also had giant data centers, ubiquitous mobile data connectivity, smartphones, journey planning algorithms, GPS and flexible billing and settlement.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Jul. 29, 2016 09:45 AM EDT Reads: 1,444
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Jul. 29, 2016 09:45 AM EDT Reads: 2,116
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
Jul. 29, 2016 08:00 AM EDT Reads: 440
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Jul. 29, 2016 07:30 AM EDT Reads: 1,001
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Jul. 29, 2016 07:15 AM EDT Reads: 1,625
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Jul. 29, 2016 06:45 AM EDT Reads: 2,362
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 29, 2016 05:00 AM EDT Reads: 1,428
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Jul. 29, 2016 04:45 AM EDT Reads: 2,363
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
Jul. 29, 2016 04:45 AM EDT Reads: 2,567
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
Jul. 29, 2016 04:30 AM EDT Reads: 1,412
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Jul. 29, 2016 04:15 AM EDT Reads: 2,679
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
Jul. 29, 2016 02:45 AM EDT Reads: 1,611
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
Jul. 29, 2016 02:30 AM EDT Reads: 1,466
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
Jul. 29, 2016 02:00 AM EDT Reads: 1,693
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
Jul. 29, 2016 12:15 AM EDT Reads: 2,104
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Jul. 28, 2016 11:45 PM EDT Reads: 1,268
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 28, 2016 10:15 PM EDT Reads: 1,451
In his session at @DevOpsSummit at 19th Cloud Expo, Yoseph Reuveni, Director of Software Engineering at Jet.com, will discuss Jet.com's journey into containerizing Microsoft-based technologies like C# and F# into Docker. He will talk about lessons learned and challenges faced, the Mono framework tryout and how they deployed everything into Azure cloud. Yoseph Reuveni is a technology leader with unique experience developing and running high throughput (over 1M tps) distributed systems with extre...
Jul. 28, 2016 10:15 PM EDT Reads: 2,236
As companies gain momentum, the need to maintain high quality products can outstrip their development team’s bandwidth for QA. Building out a large QA team (whether in-house or outsourced) can slow down development and significantly increases costs. This eBook takes QA profiles from 5 companies who successfully scaled up production without building a large QA team and includes: What to consider when choosing CI/CD tools How culture and communication can make or break implementation
Jul. 28, 2016 10:00 PM EDT Reads: 1,734
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 28, 2016 10:00 PM EDT Reads: 1,464