By definition, 5G networks are virtualized: software functions are disaggregated from hardware. There are many implications, some positive, some possibly negative.
Virtualized network functions mean network services running as software processes on off-the-shelf server hardware, replacing dedicated hardware devices. That means lower infrastructure costs for mobile operators, more use of commodity hardware and platforms.
VNFs use a microservices architecture, which should mean faster deployment of applications, at lower cost, with easier upgrades.
VNFs also underpin new services such as network slicing that allow the rapid creation of virtual private networks.
The software-based approach also makes it easier to load-balance, scale up and down, and move functions across distributed hardware resources, Ericsson says.
The shift to cloud-native computing is a part of the shift.
But some worry there are other strategic implications, such as a connectivity provider loss of ability to determine their own destinies. In principle, some of that concern might flow from a feared “hollowing out” of connectivity provider operating system core competencies.
That is hard to quantify, but the industry has faced such issues before. Before the global business moved from monopoly to competition, telcos used to develop and create their own network infrastructure. They no longer do so much of that, having outsourced such capabilities to independent infrastructure suppliers.
Telcos used to create and deploy their own “home-grown” operations support systems and billing platforms. Again, they do not do so, so much.
The danger of losing core capabilities is a non-zero risk. But the danger of ceding the ability to move as fast as modern computing does is arguably a greater risk.
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