Networks and data centers are undergoing a major transformation as physical network functions are converted to virtual network functions and applications are moved to the cloud. Although this transformation holds great promise it comes with many challenges. ACG Business Analytics is providing a solution to one of these challenges: measuring and optimizing business outcomes in software defined networking (SDN), network function virtualization (NFV), and cloud networks.
The problem of measuring and forecasting cloud service expenses and profitability is complex. Traditional approaches to business modeling using Excel have exceeded their limits. ACG Business Analytics developed the Business Analytics Engine (BAE) to solve the hard problems of network and cloud modeling while providing a powerful interface to Excel to allow business analysts freedom and flexibility to refine and enhance business models. The BAE uses real-time data, historical data, and forecasts to measure and optimize business outcomes.
ACG Business Analytics uses the BAE to provide a business analytics software as a service (SaaS) with an easy to use web user interface and an interface to Excel for business analysts and power users.
The mission of ACG Business Analytics is to provide micro-level visibility into the financial performance of cloud-based services, applications, and infrastructure thus allowing service providers to optimize revenue, profitability, and growth.
- ACG Business Analytics provides a business analytics software as a service for measuring and optimizing business outcomes in SD-WAN, NFV, and cloud networks.
- BAE platform uses real-time data, historical data, and forecasts to model networks.
- Major outputs are key performance indicators, cash flow, profitability, and other financial metrics to monitor and predict business outcomes.
Measuring and Optimizing Business Outcomes with BAE in Cloud Networks Creates Opportunities for Service Providers
- Many complex expenses
- Virtualization further complicates expense modeling
- Expenses vary based on service, region, and market segment
- Centralized vs. distributed architectures have impact
- Need to quantify cost, revenue, and profitability per subscriber and service
- Optimization algorithms are needed
- Real-time visibility of business outcomes
- What if analysis for forecasting business outcomes
- Analysis of historical data
- Real-time data from orchestration systems
- Default market, segment, and traffic data provided by ACG Research
- User input provided by Excel input files web portal
- Determine business transformation and growth impact of Cloud, SD-WAN, and NFV
- Interpret changes in design and how it impacts current and future cost dynamics
- Predict the cost of SD-WAN and NFV services for three to five years
- Calculate the cost of different NFV services in different sites and regions
- Choose NFVs: Cisco, Juniper, Palo Alto, Fortinet, etc.
- View historical, current and future expenses for alternative NFVs and design choices
- Identify the SD-WAN and NFV unit costs: cost/endpoint, cost/Gbps, cost/user