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Alphabet Inc (NASDAQ:GOOGL) Collaboration With Mobile Carriers: A reason To Worry For Cisco And Others

Alphabet Inc (NASDAQ:GOOG) is known for using the off the shelf materials in designing its data centre hardware instead of purchasing new equipment from the up-to-date IT and Telecom gurus.

A concern for investors in telecom equipment and data centers

This moves helps Google to enlighten its mobile carries with its networking know-how, a move that should greatly concern investors in telecom equipment and data centers. They include the likes of Juniper Networks, Inc. (NYSE:JNPR), NASDAQ listed Cisco Systems, Inc. (NASDAQ:CSCO) and Nokia Corp (ADR) (NASDAQ:NOK). Google made public its intention to collaborate with the likes of SK Telcom a major carrier in South Korea, Bharti Airtel a giant carrier in India among others. Their main motive is to come up with a site where operators can run their network services.

Google’s new technology

The platform will put among others two very new technologies developed by Google using its own infrastructure. They include network functions virtualization (NFV) and software defined network (SDN). SDN works by transferring network intelligence between switches and software based controllers that positions instructions on network traffic movements. This makes it easier to manage the network, easier movement of resources to applications and services on the network among others. NFV works by having software go through commodity servers to take care of functions that have been used over the years by service providers. The result is reduced costs faster launching of services.

What does the future hold?

Google has the idea of increasing the current efforts to improve the programming interfaces that provide services like Smart Offline that automatically authorizes downloading of clips only when data rates are affordable. Records indicate that big companies are already adopting SDN and NFV and others both of them. By 2016, SDN was put in use on 34% on its network. They hope to improve that by 75% by 2020.

Google competitors on the new technology

Google is not the only company trying to benefit from SDN/NFV. A number of equipment giants are also interested and are doing what they can to adopt the two. Nokia provides a set of tools for carriers interested in NFV. Cisco too has adopted SDN/NFV to work with its already installed ACI SDN.

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