TCO Analysis by ACG Research Highlights 80% CapEx and 90% OpEx Savings, with an Integrated Mobile Core when Compared to “Best of Breed” Solutions
ACTON, MASSACHUSETTS, USA, August 13, 2019 – Affirmed Networks, the leader in virtualized mobile networks, today revealed the findings of a Total Cost of Ownership (TCO) analysis by ACG Research that demonstrated the economic advantages that Mobile Network Operators can realize by deploying an integrated, virtual 5G mobile core solution.
The report, Integrated Cloud Core Advantage: A TCO Analysis, provides Mobile Network Operators with an independent financial analysis that compared an integrated 5G virtual Evolved Packet Core solution from Affirmed to a standalone ‘Best of Breed’ multi-vendor solution. In summary, the Affirmed integrated 5G vEPC solution provides a maximum capital expense (CapEx) savings of up to 81% and maximum operations expense (OpEx) savings of over 94%, generally resulting in CapEx savings of 50% and OpEx savings of 87% over 5 years compared to best-of-breed solutions. The Affirmed integrated 5G vEPC also provided additional savings in multiple expense categories over a 5-year period as noted in Table 1.
Table 1: Affirmed Integrated 5G vEPC Savings Over Multi-vendor Solution Five-Year Savings (Source: ACG Research)
| Expense Category | 5-year Savings |
| Capital Expense (CapEx) | 50% |
| Operational Expense (OpEx) | 87% |
| Network Care | 93% |
| Testing and Certification Operations | 95% |
| Training | 94% |
| Floor Space (reduction) | 51% |
| Power Costs | 60% |
| Cooling Costs | 88% |
“Operators deploying virtualized mobile core solutions are looking to support both 4G and 5G services and applications,” said Chris Nicoll, Principal Analyst, ACG Research. “While vendors have responded by providing solutions that are cloud-native, the missing link has been the delivery of a truly integrated solution capable of delivering a high-performance and material savings from a CapEx and OpEx perspective. This study represents an in-depth analysis of the many areas where a truly integrated solution can deliver powerful economic returns when compared to “best of breed” approaches that have been deployed in the first phases of virtualization.”
“As a company, we have continually focused on helping Mobile Operators deploy and scale their networks to meet the requirements of their customers. This study by ACG Research demonstrates the cost advantages that a truly integrated 5G vEPC provides to ensure operators can deliver the services customers require while remaining as competitive and profitable as possible,” said Ashwin Moranganti, Affirmed Networks, Vice President of Product and Marketing.
Methodology: Functions & Use Cases
For the analysis conducted in the report, ACG considered the following network core functions:
- 5G Mobile Core
- DPI and GiLAN Services: integrated packet inspection, media, content services: web/video optimization, content filtering, security (e.g., subscriber firewall, NAT).
- Automated Service Provisioning: configuration management across multi-vendor virtual/physical network elements and network-wide service instances; automates service creation, provisioning, instantiation of network functions; supports standard network element interfaces: SOAP, REST, NETCONF/YANG, and CLI.
- Intelligent Probe and Analytics: providing real-time network analytics on network performance and user KPI’s.
The report compared the Affirmed Networks virtualized packet core, including the company’s virtual GiLAN stack and its Virtual Probe (vProbe) solution to the multi-vendor-based ‘best of breed’ non-integrated solution. The analysis computed both the ROI and TCO as well as the annual costs over a 5-year period for two use-cases: IoT and Consumer Mobile Broadband connections, looking at both the operations expense (OpEx) and capital expense (CapEx) costs.
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About Affirmed Networks, Inc.
Affirmed Networks was founded to transform the future of the mobile industry. Our vEPC and cloud-based solutions are enabling operators to change the economics of deploying and scaling networks. Operators have deployed Affirmed’s NFV solutions to deliver differentiated 5G services, including mobile broadband, IoT, carrier-grade Wi-Fi roaming, connected cars, and more. Proven in more than 100+ networks and over 80 countries, our NFV solutions are deployed in the world’s largest networks. For more information, please visit www.affirmednetworks.com.