Cisco has just posted a new whitepaper online, in which it suggests that virtualization of networks can be somewhat counterproductive, resulting in reduced productivity.

The paper notes that while virtualization is hardly a new concept, people have recently started applying it to network functions like routers, switches and other appliances. But while the “early days of server virtualization had a dramatic impact on lowering server capital expenditures”, those benefits quickly vanish due to skyrocketing operational costs that resulted from more labor-intensive and complex processes.

It’s hard to dispute Cisco’s claims, because numerous products and vendors have popped up to help manage multiple virtual servers. Cisco therefore argues that people should approach network virtualization with these experiences in mind.

“Reducing complexity through automation and orchestration will speed operations, contribute to service agility, and lower operational costs,” it suggests.

Cisco’s arguments are pretty obvious ones. It says that there’s little point bothering with network virtualization for rarely accessed resources, but on the other hand carriers could surely benefit from it. The whitepaper also recommends automation, optimization and the careful design of virtual network resources.

The findings are interesting when one considers that Cisco is one of the major players in network virtualization, yet seems to feel the need to warn against it. It’s also surprising that the paper touches on the darker apsects of server virtualization, because most people are already well aware of these, and because Cisco and VMware are ostensibly the best of buddies – hence their partnership in a VCE joint venture together with EMC.

But perhaps that’s not the case in the field of network virtualization, where Cisco’s efforts are indirectly flinging mud at VMware’s NSX network virtualization offering.