MWC 2015: Virtual EPC Startups Snagged by the Big Guys, Filling Gaps in Portfolios

Glenn Hunt

Glenn Hunt

Summary Bullets:

  • Virtual EPC investments pay off for start-ups as major vendors open their wallets, filling portfolio gaps and strengthening their virtual network propositions.
  • Multiple vEPC wins add credibility and a level of completeness to the virtual networking solutions; customers bite and move on from PoCs and trials to commercial services.

This year’s Mobile World Congress is obviously the show to attend and at which to exhibit, and as we predicted, this is the year when the industry rapidly sets aside its safety blanket of trials and proofs of concept (PoCs) in favor of making serious commitments to virtualized solutions. Several announcements appear to demonstrate that vendors and operators have set aside pure PowerPoint and replaced it with checks from acquirers (for startups) and from operators (to vendors) for serious deployments. Read more of this post

Virtual EPCs Arrive Much Sooner Than Many Have Expected – But Where Is the Revenue?

Glenn Hunt

Glenn Hunt

Summary Bullets:

  • Predictions that EPC would be one of the first and most important NFV applications ring true; this month alone, we have seen not only technology/product announcements, but also POCs and even initial deployments.
  • Vendor opportunity appears to be wide open for both small and larger, well-established suppliers; given the software content, non-hardware vendors now have a chance to penetrate this early adopter market.

Now that the reality of virtualized network functions such as the mobile core and CPE is beginning to transition from the discussion and concept stage into proof of concept (PoC) and initial deployment in support of new operator service models, how will the vendor community be impacted from a profit and competitive perspective? June is shaping up to be a watershed month for virtual EPC (vEPC) announcements which point out that the mobile core is indeed one of the initial network functions to become fully virtualized and staged for deployment. A key observation is that not all of the announcements have come from traditional network suppliers, leaving no doubt that the market will become more crowded as startups and IT players join the traditional mobile core players. What seems clear is that the new vEPC model can help operators; what is somewhat less clear is how the new and existing suppliers will turn this market transition into profitable product sales – which are for the most part software-based. Read more of this post