Booming Market Proves Value of Virtual Network Service

What Is Network Function Virtualization?

Research shows just how much Network Function Virtualization (NFV) transforms data center connectivity. In a 2024 report, Technavio forecasts the NFV market size will increase by more than $90 billion and grow 31% annually between 2023 and 2028.

What drives this growth? Primarily the widespread expansion of wireless networks to support social networks and mobile applications. Another key contributor is the demand for data centers to support exploding network data volumes.

How Does Network Function Virtualization Work?

NFV architectures streamline deploying and managing networks by applying virtualization technologies to network nodes. This allows system administrators to implement network functions and processes in application containers running on virtual machines. The machines can work as high-volume switches, routers, gateways, firewalls, and other devices. This eliminates the need to purchase custom appliances.

Using NFV, colocation data center providers enable virtual session border controllers to protect customer networks. This reduces the cost and complexity of installing physical network protection units. Providers take a similar approach with load balancers, intrusion detection devices, and wide-area-network accelerators.

NFV compares to Software-Defined Networking (SDN), which also uses virtualization to manage network infrastructures. However, where SDN virtualizes hardware, NFV virtualizes the services—replacing devices with functions that run on high-performance x86 servers. This approach decouples the network functions from the appliances and facilitates deploying interconnect services on-demand.

Benefits of Network Functions Virtualization

NFV delivers many benefits while supporting interoperability among multi-cloud and hybrid IT environments that include on-premises and private cloud infrastructures:

• Cost Savings—reduces hardware costs by eliminating dedicated proprietary hardware appliances. With standard servers, data centers lower procurement and maintenance costs.
• Efficiency—enables higher server utilization rates with multiple virtualized functions running on the same physical server, maximizing resource efficiency.
• Scalability—scales network functions on-demand. If traffic spikes, the architecture automatically deploys additional virtual instances without the need to add hardware.
• Optimized Resources—allocates resources dynamically based on real-time demand, ensuring optimal performance without over-provisioning.
• Faster Roll-Outs—allows enterprises to launch new services within minutes compared to traditional networking methods that rely on new hardware installations that can take weeks.
• Reliable Service Quality—improves networking performance through efficient load balancing and intelligent traffic steering.
• Resilience—replicates and distributes network functions distributed across servers to ensure redundancy and fault tolerance.
• Enhanced Security—updates security functions quickly to respond to new threats and minimize vulnerabilities. Also allows for targeted security implementations to enable the configurating of network functions based on specific security needs.
• Automation and Orchestration—enables automation of network services management, helping organizations to reduce operational complexities and manage networks more efficiently.

NFV frameworks also include orchestration tools that automate deployments. This approach produces consistent network operations while decreasing the likelihood of human error. You can also ensure services adhere to service-level agreements

Options for Deploying NFV

Within DataBank colocation data centers, customers can set up NFV architectures to support their servers and storage devices. Customers also have the option of setting up NFV using the DataBank METAL™ bare-metal-as-a-service model. DataBank preconfigures and deploys physical bare metal servers that customers can select, access remotely, and begin using immediately to configure NFV architectures.

With DataBank METAL, your company can capitalize on the NFV paradigm shift to streamline how you design, deploy, and manage networks. By leveraging the benefits—cost savings, scalability, faster deployment, improved service quality, automation, stronger security, and support for hybrid environments—you can enhance your operational efficiency and future-proof your networks.