Total Cost Modeling for VNF Based on Licenses and Resources
Abstract
Moving to NFV (Network Function Virtualization) and SDN (Software Defined Network), Telco cloud architectures face four key challenges: interoperability, automation, reliability, and adaptability. All these challenges involve the optimization of resources; whether it is to increase the utilization of hardware resources (virtualization) or to deliver shared computing resources and functions in real-time (cloudification). Softwarization of networks is a consequence of telecom cloudification. Virtual Network Function (VNF) is protected by IPR (Intellectual Property Right) like any software, ensured by a license describing usage rights and restrictions at a given cost. Until now limited studies have happened in the economic dimension linked to softwarisation. Currently, the telco industry struggles to converge and standardize licensing and cost models. At risk: the network cloudification benefits could be swept away by poor management of resources (Hardware and Software). This article presents a preliminary model for optimizing the total cost of a VNF, based on the Resource Cost (RC) and License Cost (LC). This analysis is inspired by measurement and licensing practices commonly observed in the Telcos industries,i.e consumption and capacity.
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