Lawrence Berkeley National Laboratory

Service providers and vendors are moving toward a network virtualized core, whereby multiple applications would be treated on their own merit in programmable hardware. Such a network would have the advantage of being customized for user requirements and allow provisioning of next generation services that are built specifically to meet user needs. In this article, we articulate the impact of network virtualization on networks that provide customized services and how a provider's business can grow with network virtualization. We outline a decision map that allows mapping of applications with technology that is supported in network-virtualization - oriented equipment. Analogies to the world of virtual machines and generic virtualization show that hardware supporting network virtualization will facilitate new customer needs while optimizing the provider network from the cost and performance perspectives. A key conclusion of the article is that growth would yield sizable revenue when providers plan ahead in terms of supporting network-virtualization-oriented technology in their networks. To be precise, providers have to incorporate into their growth plans network elements capable of new service deployments while protecting network neutrality. A simulation study validates our NV-induced model.