{"id":1490,"date":"2016-12-14T07:31:47","date_gmt":"2016-12-14T12:31:47","guid":{"rendered":"https:\/\/solutionsreview.com\/cloud-platforms\/?p=1490"},"modified":"2016-12-14T07:31:47","modified_gmt":"2016-12-14T12:31:47","slug":"cloudify-program-cuts-risk-to-vnf-providers-with-consumption-based-revenue-model-for-cloud-native-vnf-development","status":"publish","type":"post","link":"https:\/\/solutionsreview.com\/cloud-platforms\/cloudify-program-cuts-risk-to-vnf-providers-with-consumption-based-revenue-model-for-cloud-native-vnf-development\/","title":{"rendered":"Cloudify Cuts Risk to VNF Providers With New Consumption-Based Revenue Model"},"content":{"rendered":"<div style=\"text-align: justify\" align=\"center\"><b><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1497\" src=\"https:\/\/solutionsreview.com\/cloud-platforms\/files\/2016\/12\/Cloudify-Cuts-Risk-to-VNF-Providers-With-New-Consumption-Based-Revenue-Modelon.jpg\" alt=\"cloudify-cuts-risk-to-vnf-providers-with-new-consumption-based-revenue-modelon\" width=\"800\" height=\"350\" \/><\/b><\/div>\n<div style=\"text-align: justify\" align=\"center\"><\/div>\n<div style=\"text-align: justify\" align=\"center\">This week, the teams at\u00a0<a href=\"https:\/\/gigaspaces.com\" target=\"_blank\">GigaSpaces<\/a>\u00a0launched a new program by\u00a0<a href=\"https:\/\/cloudify.com\" target=\"_blank\">Cloudify<\/a>, aimed to reduce the financial and technical risks faced by <b>virtualized network functions\u00a0<\/b>VNF vendors looking to cash in on the rising tide of telecoms and large network operators making the move to <a href=\"https:\/\/getcloudify.org\/nfv\" target=\"_blank\">cloud-native <\/a>VNF architectures. The company explains that, rather than taking on the fixed costs of re-architecting their VNFs for cloud-native deployments, VNF vendors can now tie the expense of this transition to the success and scaling of commercial, revenue-generating production deployments.<\/div>\n<div style=\"text-align: justify\"><\/div>\n<div style=\"text-align: justify\">The program is the\u00a0first to offer VNF vendors a consumption-based model for moving their VNFs to cloud-native architectures, minimizing the upfront cost and associated risk of making the switch.<\/div>\n<div style=\"text-align: justify\"><\/div>\n<div style=\"text-align: justify\">\u201cMost VNFs are packaged today as a virtual appliance and were not designed for cloud-native architectures,\u201d said Nati Shalom, founder and CTO of GigaSpaces. \u201cThey were not built for scale-out, and they\u2019re not driven by APIs, nor do they support multi-tenancy. Most require manual intervention to set up. Cloud-native environments need all these, and that\u2019s what the Cloud-Native VNF Program provides, in a model that virtually eliminates business risk by scaling fee to production revenue.\u201d<\/div>\n<div style=\"text-align: justify\"><\/div>\n<div style=\"text-align: justify\">Cloud-Native V<strong>NF Program Tiered Pricing Model<\/strong><\/div>\n<div style=\"text-align: justify\"><\/div>\n<div style=\"text-align: justify\">The tiered pricing model of the Cloudify Cloud-Native VNF Program reduces risk by tying transition costs to the eventual scale-up of production operations with customers. There are three phases in the model:<\/div>\n<div style=\"text-align: justify\"><\/div>\n<ol style=\"text-align: justify\">\n<li><strong>Design Phase<\/strong>\u2014A low-cost model allows users to quickly assess how the VNF can be redesigned for a cloud-native environment.<\/li>\n<li><strong>Development Phase<\/strong>\u2014A per-seat SLA for developer support is offered at this phase, when service developers need help determining which fee-based services they can build atop a given VNF or set of VNFs.<\/li>\n<li><strong>Production Phase<\/strong>\u2014Once design and development are complete, GigaSpaces offers back-to-back support, with the VNF providers delivering front-end support and GigaSpaces offering backend technical support. At this point, GigaSpaces can offer the pricing model that best fits the customer\u2019s business model: revenue sharing, fixed price or tiered.<\/li>\n<\/ol>\n<div style=\"text-align: justify\">By breaking the process into three phases, the model reduces risk for customers, allowing them to isolate design and development activities into separate contract tiers, before commercial applicability is assessed.<\/div>\n<div style=\"text-align: justify\"><\/div>\n<div style=\"text-align: justify\">\u201cBuilding a cloud-native VNF should be a no-brainer,\u201d said Shalom. \u201cWe\u2019re bringing a commercial mindset to the migration of networking topologies from fixed and proprietary to cloud-native and open source. This model eliminates all of the barriers that hold VNF providers back from moving to cloud-native architectures. Tying pricing to the amount of value that VNF providers extract at each stage of the transition controls the costs associated with the transition, delivering that \u2018no-brainer\u2019 model everyone is looking for.\u201d<\/div>\n<div style=\"text-align: justify\"><\/div>\n<div style=\"text-align: justify\">Find out more at <a href=\"https:\/\/www.gigaspaces.com\/\" target=\"_blank\">www.gigaspaces.com<\/a> and <a href=\"https:\/\/www.getcloudify.org\/\" target=\"_blank\">www.getcloudify.org<\/a>.<\/div>\n<div style=\"text-align: justify\">\n<p style=\"text-align: center\">Be sure to follow Solutions Review on <a href=\"https:\/\/www.twitter.com\/cloudtechreview\" target=\"_blank\">Twitter<\/a> and <a href=\"https:\/\/www.linkedin.com\/lloffredo1\" target=\"_blank\">Linkedin<\/a> for daily news and perspectives from your favorite cloud vendors.<\/p>\n<p style=\"text-align: left\"><br \/>Widget not in any sidebars<br \/><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>This week, the teams at\u00a0GigaSpaces\u00a0launched a new program by\u00a0Cloudify, aimed to reduce the financial and technical risks faced by virtualized network functions\u00a0VNF vendors looking to cash in on the rising tide of telecoms and large network operators making the move to cloud-native VNF architectures. The company explains that, rather than taking on the fixed costs [&hellip;]<\/p>\n","protected":false},"author":29,"featured_media":1497,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[326,381,534],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Cloudify Cuts Risk to VNF Providers With New Consumption-Based Revenue Model - Cloud Platforms &amp; Infrastructure Services | Solutions Review<\/title>\n<meta name=\"description\" content=\"Building a cloud-native VNF should be a no-brainer.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/solutionsreview.com\/cloud-platforms\/cloudify-program-cuts-risk-to-vnf-providers-with-consumption-based-revenue-model-for-cloud-native-vnf-development\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/solutionsreview.com\/cloud-platforms\/cloudify-program-cuts-risk-to-vnf-providers-with-consumption-based-revenue-model-for-cloud-native-vnf-development\/\",\"url\":\"https:\/\/solutionsreview.com\/cloud-platforms\/cloudify-program-cuts-risk-to-vnf-providers-with-consumption-based-revenue-model-for-cloud-native-vnf-development\/\",\"name\":\"Cloudify Cuts Risk to VNF Providers With New Consumption-Based Revenue Model - Cloud Platforms &amp; 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