How AT&T and Verizon Are Cutting Costs by Mimicking Cloud Data Centers

It’s more about software instead of more costly hardware. #AT&T and #Verizon Communications are offering their largest clients access to a futuristic network that copies many of the tactics of the cloud data center to reduce costs and increase flexibility. Instead of buying relatively expensive networking gear to provide different functions like routing and security firewalls, the carriers are moving to lower-cost, more generic hardware and implementing new features as needed via software. Known as a ( #SDN ) software-defined networking, the approach mimics the way data center computer servers began offering different “virtualized” features through software instead of specialized hardware over a decade ago. “The network is finally catching up to the data center,” says Vickie Lonker, director of product and new business at Verizon’s enterprise division. The shift allows Verizon to provide new functions without having to install new hardware at the customer’s office, speeding up the process, and reducing costs, she explained.

http://fortune.com/2016/07/21/telecom-carriers-cutting/