The next frontier for virtualization and standard x86 servers is in service-provider networks, and big computing vendors are moving fast to blaze the trail there.

NFV (network functions virtualization) is designed to move the back-end processing in carrier networks from dedicated appliances to software that can run across a virtual computing infrastructure. That should mean faster development and deployment of new services for subscribers, plus lower network costs. NFV is likely to open up carriers’ networks to services developed by a broad range of companies, including startups, and could help the carriers compete against Internet companies such as Skype and Google that deliver services over the top of those networks.

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