How NFV Is Redefining Data Centers and Complementing SDN

NFV Definition

NFV (Network Function Virtualization) is a network architecture concept that uses virtualization technology to turn entire categories of network node functions into software‑based services that can be linked together. According to Wikipedia, NFV virtualizes network functions to run on standard hardware. The OpenStack Foundation describes NFV as a new way to define, create, and manage networks by replacing dedicated hardware with software and automation. ETSI defines NFV as a solution that addresses the growing cost and complexity of proprietary hardware‑based network components, meeting the demands of cloud computing, big data, and IoT.

ETSI further states that NFV integrates network functions onto industry‑standard high‑capacity servers, switches, and storage, allowing software implementations of network functions to run on a range of standard servers and be migrated as needed without installing new devices.

NFV Business Capabilities

Like SDN, NFV shifts from hardware‑centric solutions to open, software‑centric ones. For example, a virtual firewall can replace a dedicated hardware firewall. Other virtual network functions (VNFs) include intrusion detection/prevention, NAT, load balancing, WAN acceleration, caching, GGSN, session border controllers, DNS, and more. Multiple VNFs can be combined into higher‑level multi‑component services such as virtual routers.

NFV can be deployed on inexpensive bare‑metal or white‑box servers, running on commercial off‑the‑shelf hardware rather than costly proprietary devices. Network operators can quickly instantiate and deliver VNFs, automating service delivery through business‑process automation.

Reduced CAPEX and OPEX by lowering equipment costs and power consumption.

Shortened time‑to‑deploy new network services.

Higher ROI for new services.

Greater flexibility to scale, shrink, or evolve services.

Open market for virtual appliances and pure‑software entrants.

Lower‑risk testing and deployment of innovative services.

NFV Origin

ETSI introduced NFV in a white paper presented at the SDN and OpenFlow World Congress in Germany (October 2012). The paper, titled “Network Functions Virtualization – Introduction, Benefits, Drivers, Challenges, and Call to Action,” highlighted contributions from AT&T, Verizon, and other vendors.

The white paper aimed to outline NFV’s advantages, driving factors, challenges, and to encourage international collaboration for interoperable, standards‑based solutions.

Subsequent initiatives such as OPNFV (Open Platform for NFV) were created to develop open‑source NFV components, integrate upstream projects (OpenDaylight, ONOS, OpenStack, Ceph, KVM, Open vSwitch, Linux), and provide a reference platform for accelerated NFV adoption.

NFV and SDN

NFV emerged after SDN, and the two technologies are highly complementary but not dependent on each other. ETSI states that NFV and SDN can be used independently, yet together they can deliver additional value.

SDN separates the control plane from the forwarding plane, enabling programmable networks, while NFV moves network functions into virtual environments. Combining them allows operators to run SDN software on the same infrastructure that hosts VNFs, improving performance, simplifying compatibility with existing deployments, and facilitating automated service provisioning.

OpenDaylight notes that SDN enables separation of control and data planes for programmable networking, whereas NFV provides flexible, location‑agnostic deployment of network services, together enhancing resource optimization, agility, service innovation, and time‑to‑market.

NFV Future

As NFV matures, many vendors—including AT&T, Cisco, Dell, Citrix, Microsoft, Oracle, Verizon, Brocade, Juniper, and others—offer NFV‑based products and services. Standards bodies and industry groups continue to formalize specifications and best practices.

OPNFV’s goals are to develop an integrated, open‑source platform for building and testing NFV functions, foster collaboration among upstream projects, ensure component consistency, performance, and interoperability, and create an ecosystem of open standards and software‑based NFV solutions that meet end‑user needs.

ETSI’s NFV ISG maintains over 50 publications covering information modeling, security, management, and business processes, with ongoing work on new specifications and interoperability testing (e.g., Plugtest).

Industry consensus indicates that NFV is gradually moving from service providers into enterprise data centers, driven by the need for agile, cost‑effective network services.