Why 5G network slicing--the ability to create multiple logical networks to run on top of a shared physical network infrastructure--matters to enterprises and service providers is a logical question.
Other existing technologies supply some of the value of virtualized networks supporting network slices. Differentiated Services (DiffServ) supplies quality of service. Virtual Private Networks already create logical networks using IP tunneling.
Network Function Virtualization (NFV) already is coming to mobile core networks.
So what is the business value of network slicing? New revenue sources are conceivable, for starters.
Mobile operators can partition their physical network resources into multiple logical slices and lease those slices out to interested parties. Think of how mobile virtual network operators now purchase wholesale capacity from network suppliers, and then consider how an MVNO might use a network slice to source its capacity using a network slice, instead of buying capacity the traditional way.
Also new: the possibility of selling a range of capabilities ranging from a fully private network to use of core network, transport or portions of access networks with customized features.
That could allow an MVNO to control its core network, not simply use radio and other generic resources obtained wholesale from a network services provider. An MVNO might add other resources (computing resources, distributed or centralized; plus custom or other apps).
An electrical utility might configure its own network slice for connectivity for sensors, meters, and controllers that do not require much bandwidth at all, and operate mostly in fixed mode.
As with the long-sought advantage of networks supporting bandwidth and provisioning on demand, network slicing could offer an easier way to provision short-term and episodic networks, such as temporary networks set up for events. A temporary network created to support a concert or music festival might prefer a network slice that is optimized to support streaming.
Video surveillance firms might want their slices configured to support cameras.
Other potential slice buyers could include big app or transaction platforms that could assemble complete wholesale mobile networks by buying network slices.
At least in a few cases, some upstart mobile network providers might elect to take a wholesale-only approach, offering their customers virtual networks possibly optimized differently for various MVNO tenants.
There are corresponding new revenue models as well. Multi-end-user slices might created for customers who have similar requirements, such as high-bandwidth, low-latency or any other parameter the network can provider (quality of service, availability, resilience, security, identity management, geography, low device power consumption). That could happen across some industry verticals, for example (health, manufacturing, content delivery)
Temporary networks provided by slices or single-enterprise or single-organization networks also can be created and sold.
Mobile operators also might choose to use network slicing for internal use only, as a wholesale platform, as a building block for vertical market services.
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