The popularity of multimedia services offered over the Internet have increased tremendously during the last decade. The technologies that are used to deliver these services are evolving at a rapidly increasing pace. However, new technologies often demand updating the dedicated hardware (e.g., transcoders) that is required to deliver the services. Currently, these updates require installing the physical building blocks at different locations across the network. These manual interventions are time-consuming and extend the Time to Market of new and improved services, reducing their monetary benefits. To alleviate the aforementioned issues, Network Function Virtualization (NFV) was introduced by decoupling the network functions from the physical hardware and by leveraging IT virtualization technology to allow running Virtual Network Functions (VNFs) on commodity hardware at datacenters across the network. In this paper, we investigate how existing service chains can be mapped onto NFV-based Service Function Chains (SFCs). Furthermore, the different alternative SFCs are explored and their impact on network and datacenter resources (e.g., bandwidth, storage) are quantified. We propose to use these findings to cost-optimally distribute datacenters across an Internet Service Provider (ISP) network.
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