Network Virtualization Emerging as New Trend

Guido Appenzeller, CTSO for Networking and Strategy at VMWare, held a press conference on May 21 at the Grand Intercontinental Hotel located in Samsung-dong, Seoul. “Approximately 80 percent of major banks around the world as well as the telecom operators, including AT&T and NTT, are reducing their network costs while enhancing security by means of network virtualization,” he remarked.

Network virtualization can be defined as a technique allowing multiple networks to be used in a single device or a single network device to be used for multiple different purposes. This technique is based on the software-based realization of different network components that have been operated as separate hardware pieces.

One of its examples is the NSX platform of VMWare. When the NSX is installed, only required networks can be used to meet specific purposes, and thus data center operation can be made more efficient. In addition, it forms different firewalls for different corporation divisions by means of micro-segmentation so that confidential information cannot be transferred. In this case, all traffic is monitored and controlled, which contributes to safe network operations. The entire process of network establishment and management is automatically carried out, and update costs can be reduced along with the time required for installation.

“We are in an era when software, not hardware, drives data centers,” he continued, adding, “Global leading companies like GE, AT&T, Vodafone, China Telecom, and eBay have already adopted the NSX as a tool for maximizing their service efficiency by facilitating network establishment and management.”

Korean mobile carriers are moving nimbly to catch up with the trends, too. Earlier this year, SK Telecom and Samsung Electronics commercialized the LTE Core Network based on network virtualization. Last month, SK Telecom started the commercial operation of the Cloud AC for WiFi virtualization to improve the quality of its T WiFi networks. The Cloud AC forms virtual servers when WiFi traffic surges.

KT, in the meantime, recently signed an MOU with Alcatel-Lucent to set up infrastructure based on network virtualization. LG U+ built an evolved packet core (EPC) system in partnership with Affirmed Networks as well.