One of the key questions around virtualization that you always hear and see talked about in the industry is how quickly do we see this being introduced? What are the motivators? Why would people, the service providers, really want to get that out there? What's going to be the tipping point that says we have to do this real quickly?
Over the last 18 months I've seen quite a shift. Initially what you heard about was the Capex and Opex reduction and the introduction of virtualization. The mood has shifted a great deal from what I've been able to observe in the people we work with. The concern is far less on the Capex and Opex reduction than it is on service enablement. The ability to have a very agile environment where they can introduce new services quickly, they can take services out as quickly as they can put them in, that's not inherent in the nature of today's communication service providers.
Services go in and they're there for years. There's a feeling of anxiousness about the ability to deliver services in a very rapid manner. There's a lot of pressure to be able to bring in new services, generate new revenue in different ways than in the past. All of the service providers are seeing flat line and negative growth in their wireless and wire-line areas. They know they have to develop other ways of generating revenue. They've been looking at new services for years.
I think there's a very fundamental belief that this change in infrastructure to go more software centric, and away from the hardware centric approach is going to give them this service enablement environment. Allow them to very easily compose new services. To be able to personalize for those services to a specific environment. The cost of building a service for a specific instance will be reduced to the point that that now becomes a viable business model rather than having to recoup the costs over thousands of deployments. They can recoup the costs very easily and within a reasonable cost point, off of a single deployment or a single type of service.