Value creation through network infrastructure automation
The Software-Defined Networking Technology and its business model from the IT service provider’s perspective
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Abstract
Our research is exploring how the computer network technology of Software-Defined Networking (SDN) can benefit an IT service provider. SDN is a novel technology that is capable of managing a whole network based on a single centralized entity. As a result an SDN enabled network becomes more flexible, automatable and programmable to satisfy users’ needs. SDN with its automation features can enhance cloud services, and mainly the well-known Infrastructure as a Service (IaaS), as it can significantly reduce the services’ delivery time and the costs for their provisioning. More specifically, this thesis emphasizes on how the IT service provider’s datacenter services can be improved both for its own benefit and of course for the benefit of its customers as well. Our approach for the exploration and exploitation of the novel technology, is the design of a business model enabled by SDN technology. Primary stakeholder and user of the business model is the IT service provider. Additionally, we have to specify that this research is based on a single case study that is executed in collaboration with the Dutch branch of Capgemini. For the completion of our research we are making extensive literature review and interviews with experts of the field. In the next lines of this summary we are going to briefly mention the contents of each chapter as well as our findings, conclusions and recommendations for each one of them. The maser thesis consists of six chapters, which are interconnected as a logical continuation of each other. More specifically: Chapter 1 – Introduction. This is the chapter that is making a general reference to the contents of the master thesis, the issue stakeholder, the research objectives, and research questions. Issue stakeholder is the IT service provider, and our three research objectives are: “the identification of the current state and future trends of the SDN technology both in the market and the academia”, “the identification of the business model framework that supports the case of the SDN technology adoption from an IT service provider” and “the design of a business model for delivery of SDN enabled services”. These three research objectives are translated to three relevant research questions. All three research questions are giving answer to the main research question. Chapter 2 – State of the art of SDN - Current status and future trends. The second chapter is giving answer to the first research question: “What is the state of the art of SDN?”. It is related with the state of the art of SDN and its future trends. A brief summarized answer would be that SDN is currently still in its early adoption phase and OpenFlow is the dominant enabling protocol. Moreover, there are many different SDN controllers in the market and much more are the nonproprietary projects that big established infrastructure vendors support. Use cases of SDN are focusing on: network management and availability, security assurance and innovative wireless implementations. The diffusion of SDN technology for the entire market is yet to come. The future of the SDN technology is forecasted to be full of new developments that will be open source oriented. The SDN market is constantly growing and the academia is eager to keep exploring and exploiting the domain. The outcomes of chapter two are taken in consideration for the design of the business model in chapter five. Chapter 3 – Business Model Literature Review. In the third chapter of the master thesis is given answer to the second research question: “Which business model framework best supports the design of an SDN business model?”. For this answer an extensive comparison of three different business model frameworks is made. The STOF, VISOR and Canvas frameworks are compared and as the best fitting framework to the case of SDN is chosen to be the STOF framework. Chapter 4 – Research design methodology. In the fourth chapter the research design of the thesis is made explicit. Through the chapter is analyzed the research design methodology, the data collection methodology and the way that the chosen business model framework is used. We are making use of the design science research of (Vaishnavi & Kuechler, 2007) and the design cycle for the design oriented researches of (Verschuren & Hartog, 2005). Plus we are extracting all the necessary data for our research through interviews with experts. Chapter 5 – Business model design. The fifth chapter is the initiation of the second part of the thesis where the business model is designed and the third and last research question is answered: “Based on the selected business model framework, how does a viable business model that integrates SDN technology in an IT service provider’s datacenter infrastructure, looks like?”. Chapter 6 – Discussion and Conclusions. Conclusions, limitations as well as future research, in addition with some recommendations and reflection of the whole thesis, are included in this chapter. Much more the main research question is answered as well.