For telecoms, there’s no reason to hesitate on core network virtualization

<p><b>Virtualization costs are rising. But multi-vendor strategies and AIOps advances make core network transformation more flexible—and future-proof—than ever for telecom operators.</b></p>

<p>When it comes to network virtualization, more than a few chief network officers are understandably wondering about their next steps. Broadcom’s acquisition of VMWare and <a href="https://www.crn.com/news/data-center/2025/broadcom-vmware-ups-minimum-core-purchase-substantially-levies-late-renewal-penalties" target="_blank" rel="noopener noreferrer">the resulting upheaval</a> to bundling requirements, licensing models and pricing has <a href="https://www.theregister.com/2025/05/22/euro\_cloud\_body\_ecco\_says\_broadcom\_licensing\_unfair/" target="_blank" rel="noopener noreferrer">roiled the virtualization industry</a>. Meanwhile, telecom operators’ existing hardware routers and servers continue to run just fine. Many might conclude that no action is the best action they can take.</p> <p>But the core network virtualization ship has sailed too far to turn back now. Many telecom operators’ access networks are already virtualized. And the network density and flexibility needed for 5G simply can't be achieved with physical appliances everywhere.</p> <p>Further, the benefits of core network virtualization remain too compelling to ignore.<b> </b>By decoupling network functions from dedicated hardware and moving them to software-defined networks (SDNs), telecoms can scale their infrastructure on-demand. They can also deploy and test new applications and services in hours rather than weeks or months.</p> <p>Thankfully, virtualization’s pricing changes also present an unexpected upside: They’re <a></a><a href="/content/dam/connectedassets/cognizant-global-marketing/marketing-channels/cognizant-dotcom/en_us/services/documents/cognizant-rise-of-alternative-virtualization.pdf" target="_blank" rel="noopener noreferrer">prompting a new look</a>&nbsp;at alternative hybrid and public cloud solutions. Equally important for telecoms, the door has been opened to adopt a diversified multi-vendor strategy—and move closer than ever to using AI for IT operations, or AIOps.</p> <h4>Compelling benefits of network virtualization</h4> <p>So far, telecom operators have moved cautiously toward virtualization.<b> </b>For leadership teams, implementing virtualization can feel a bit like navigating a major lifestyle shift: sticking with a traditional home—comfortable, familiar and backed by a network of trusted providers—or venturing into RV life, which is more flexible and potentially more affordable but also a whole new approach to life.</p> <p>But with all the benefits network virtualization entails, the question isn’t whether to embrace the RV lifestyle. The real decision is where to park: Which platform offers the right balance of cost, support and long-term scalability?</p> <p>The new pricing environment has changed the answer. While VMware may remain the preferred platform for critical workloads, today’s market dynamics are prompting operators to explore alternative solutions for multi-vendor, cloud-native network architecture.</p> <p>For instance, options like Red Hat OpenStack offer greater cost efficiency, while Microsoft Azure Stack HCI—now part of <a href="https://learn.microsoft.com/en-us/azure/azure-local/rename-to-azure-local?view=azloc-2505" target="_blank" rel="noopener noreferrer">Azure Local</a>—presents a natural choice for organizations already using Microsoft across their enterprise.</p> <p>What’s more, as telecom operators revisit their thinking on virtualization to focus on a multi-vendor environment, they also open the door to new advantages like more competitive pricing and reduced chance of vendor lock-in.<b></b></p> <h4>How network virtualization opens the door to AIOps</h4> <p>AIOps has become another key consideration when it comes to evaluating virtualization vendors. With AIOps, AI/ML-driven algorithms analyze real-time telemetry data such as traffic patterns, latency, throughput and hardware performance. After identifying patterns and detecting anomalies, the algorithms then take corrective action to reroute traffic or reconfigure devices. No human intervention is required.</p> <p>But managing millions of connected devices across thousands of miles of network infrastructure requires more visibility and responsiveness than traditional methods can deliver. For instance, AIOps self-healing is nearly impossible with traditional virtual hardware. Physical routers can't be “spun up” instantly or have their configurations changed rapidly.</p> <p>Virtual network functions, on the other hand, can be instantly deployed on available compute resources and automatically scaled up or down based on demand. What’s more, they can be rapidly reconfigured through software APIs and moved between data centers as needed.</p> <p>Further, cloud-native architectures (with their containers, service meshes and dynamic workloads) are far better suited to AIOps than traditional virtual machines. With their modularity and richer telemetry, cloud-native architectures deliver the reliability<b> </b>and operational efficiency that are top of mind for chief network officers<b>.</b></p> <h4>AIOps in action</h4> <p>We’re seeing big advances in AI-powered network self-healing. Deutsche Telekom is now testing a network AI agent it’s developing in <a href="https://www.telecoms.com/ai/deutsche-telekom-and-google-cloud-team-up-on-ai-agent-for-ran-operations" target="_blank" rel="noopener noreferrer">partnership with Google Cloud</a>. The agent analyzes radio access network behavior to detect performance issues and implement corrective actions. Deutsche Telekom expects the system to <a href="https://www.rcrwireless.com/20250404/telco-cloud/deutsche-telekom-google" target="_blank" rel="noopener noreferrer">enhance mobile performance</a> in high-demand scenarios such as concerts, sports events and traffic congestion.</p> <p>Early business use cases for self-healing networks show significant results. BT <a href="https://www.telecomtv.com/content/network-automation/bt-doubles-down-on-aiops-with-dynatrace-targets-self-healing-systems-by-2025-44785/" target="_blank" rel="noopener noreferrer">reported</a> that automated issue detection slashed mean time to identify faults from 30 minutes to real-time operations. It also accomplished a major consolidation, replacing 16 monitoring platforms with Dynatrace's unified platform.</p> <h4>A complete network transformation</h4> <p>While rising virtualization costs have introduced new pressures, they’ve also created the conditions for smarter, more resilient networks. By embracing a multi-vendor, cloud-native approach—and layering in AI-powered operations—telecom operators can move beyond cost containment toward agility, automation and long-term competitive edge.</p>