Network Virtualization in Business: Top Advantages and Challenges

Virtualization is not a new concept to discuss. Instead, its origins can be traced back to the 1960s. With each technological advancement, individuals and businesses transformed the methods they operate. Network virtualization (NV) is one of such innovations that allowed businesses to streamline their functions lately.

Sources state that more than 66% of organizations have achieved more flexibility after incorporating virtualization. Additionally, 50% of companies have experienced higher operational efficiency through integrating virtualization.

Let us comprehend network virtualization thoroughly, alongside discussing its workings, benefits, and challenges.

What is Network Virtualization?

Network virtualization is a process of abstracting traditional networking functions into virtual networks in a physical infrastructure. With NV, users can combine several physical networks into a solo virtual network, isolating one from another. As a type of virtualization, this mechanism enables organizations to create virtual environments to process and manage data, eliminating the chances of physical restrictions.

In this process of adopting NV, companies also leverage virtual machines (VMs) that assist in limiting physical infrastructure footprint. Such methodology brings agility to an organizational structure while dealing with complex tasks. There are two broad types of network virtualization:

Internal virtualization: To replicate the function of a single network, it uses software containers. Internal virtualization allows virtual machines to transfer data on a single network server without external network.

External virtualization: It consolidates several local networks into one unified virtual network, utilizing different networks, adapters, and switches.

There are other categories of NV, such as software-defined networking, virtual LANs, virtual routing and forwarding (VRF), network function virtualization (NFV), overlay networks, virtual private networks (VPN), and others.

Network virtualization

How Network Virtualization Works?

Virtualization in a network is elementary in detaching or abstracting network facilities from physical hardware and transferring it into virtual networks. In this process, network hypervisors or controllers play a significant role by creating layers to support virtual networks. These layers help in replicating the network components.

Following that, virtual switching manages the interaction between VMs and virtual resources. It basically looks after the traffic in the virtualized network. NV then initiates isolation to separate the operations of each virtual network. This phase ensures the security of each element on the networks, providing the utmost privacy to all the networks.

Host protocols are other significant elements of NV that determine the way hosts and VMs or resources communicate with other hosts and VMs within different virtual networks. Alongside communication protocols, there are several management tools that contribute to efficient execution of each stage of NV. Therefore, the key components of network virtualization include network hypervisor, software controller, virtual switching, host protocols, and management tools.

Network virtualization

Advantages of Network Virtualization:

Virtual network integration is a common practice among companies nowadays. Let us dive into its benefits:

Flexibility: Virtualization of networks unlocks flexibility in resource allocation and management. With faster deployment and operations, NV easily fulfills the dynamic demands of the cloud, data centers, and others.

Operational optimization: Virtual networks detach network services from hardware and physical infrastructure, boosting efficient resource utilization. The process fast forwards operations in a company, offering enhanced opportunities to excel in every task.

Enhanced network security: NV isolates virtual networks from each other, restricting interaction between different users, hosts, and environments. The isolation between physical and virtual networks is also beneficial for disaster recovery in case of any unwanted cyber breach.
Cost-effectiveness: Network virtualization limits the high costs of physical network deployment and management. Additionally, it increases resource delivery more than hardware and physical infrastructure.

Challenges of Virtual Networks:

Advanced technological integration is a two-headed sword that can benefit and create difficulties for businesses at the same time. Similarly, virtual network integration also has the following challenges:

Integration with existing or legacy servers: Implementation of virtual networks with the legacy systems can be highly complex. Network virtualization uses the latest tools and tactics. Hence, if the legacy system requires an upgrade, compatibility issues can arise.

Management: Virtual networks change the network infrastructure totally from traditional methods. However, both have different management approaches. Therefore, it can be complicated for organizations to control and manage virtual networks. At such situations, upskilling the workforce becomes necessary which is time consuming and challenging.
Security: Virtual networks can create security concerns if the networks and VMs are not isolated appropriately. In case of any vulnerabilities and weaknesses, major cyber threats can take place due to which companies can lose their valuable data.

Network virtualization

Summing Up!

Network virtualization has doubtlessly transformed modern computing methods. With a plethora of benefits, such as scalability, low costs, and rapid deployment, this technology has been assisting numerous companies, bringing efficiency in operations. Virtualization is a recurring element of cloud computing, data centers, and software-defined networking. Therefore, companies seeking enhanced control over their networks are remarkably implementing virtualization.

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