The SDN, NFV & Network Virtualization Ecosystem: 2017 – 2030 – Opportunities, Challenges, Strategies & Forecasts

While the advantages of SDN (Software Defined Networking) and network virtualization are well known in the enterprise IT and data center world, both technologies also bring a host of benefits to the telecommunications service provider community. Not only can these technologies help address the explosive capacity demand of mobile traffic, but they can also reduce the CapEx and OpEx burden faced by service providers to handle this demand by diminishing reliance on expensive proprietary hardware platforms. The recognition of these benefits has led to the emergence of the NFV (Network Functions Virtualization) concept that seeks to virtualize and effectively consolidate many service provider network elements onto multi-tenant industry-standard servers, switches and storage.

Service providers – both mobile and fixed-line – have already begun making significant investments in SDN and NFV across a number of use cases including but not limited to uCPE/vCPE, SD-WAN, vEPC, vIMS, Cloud RAN and vCDN. SNS Research estimates that service provider SDN and NFV investments will grow at a CAGR of approximately 45% between 2017 and 2020, eventually accounting for nearly $22 Billion in revenue by the end of 2020.

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The “SDN, NFV & Network Virtualization Ecosystem: 2017 – 2030 – Opportunities, Challenges, Strategies & Forecasts” report presents an in-depth assessment of the SDN, NFV and network virtualization ecosystem including enabling technologies, key trends, market drivers, challenges, use cases, deployment case studies, regulatory landscape, standardization, opportunities, future roadmap, value chain, ecosystem player profiles and strategies. The report also presents market size forecasts from 2017 till 2030. The forecasts are segmented for 10 submarkets, 2 user base categories, 9 functional areas, 6 regions and 34 countries.

The report comes with an associated Excel datasheet suite covering quantitative data from all numeric forecasts presented in the report.

The report covers the following topics:

SDN, NFV and network virtualization ecosystem
Market drivers and barriers
Enabling technologies, protocols, architecture and key trends
SDN and NFV use cases across service provider, data center and enterprise networks
Commercial SDN and NFV deployments – including 10 comprehensive case studies
Review of key functional areas including uCPE/vCPE, SD-WAN, data center SDN, vEPC, vIMS, Cloud RAN and vCDN
Assessment of CapEx savings potential of service provider SDN and NFV investments
Management and orchestration platforms for software-centric networks
Standardization, regulatory and collaborative initiatives
Industry roadmap and value chain
Profiles and strategies of over 270 ecosystem players including SDN/NFV specialists
Strategic recommendations for enabling technology providers, network infrastructure vendors, IT giants, pure-play SDN/NFV specialists, enterprises, data center operators and service providers
Market analysis and forecasts from 2017 till 2030
Forecast Segmentation

Market forecasts are provided for each of the following submarkets, user base and functional area categories:

Submarkets

SDN/SD-WAN Hardware & Software
NFV Hardware & Software
Other Network Virtualization Software
User Base Categories

Service Providers
Enterprises & Data Centers
SDN/SD-WAN Submarkets

SDN-Enabled Switches, Routers & Other Appliances
SDN Controller Software
SDN Orchestration Software
SDN Network Applications
SD-WAN Appliances
SD-WAN Control & Overlay Software
NFV Submarkets

NFVI (NFV Infrastructure)
NFV MANO (Management & Orchestration) Software
VNF (Virtualized Network Function) Software
Service Provider Functional Area Categories

CDN (Content Delivery Network)
CPE (Customer Premises Equipment)
Data Center
Fixed Access Network
IMS & VoLTE
Mobile Core
Policy Control
RAN (Radio Access Network)
Transport Network
Other Areas

The following regional and country markets are also covered:

Regional Markets

Asia Pacific
Eastern Europe
Latin & Central America
Middle East & Africa
North America
Western Europe

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Key Questions Answered

The report provides answers to the following key questions:

How big is the SDN, NFV and network virtualization opportunity?
What trends, challenges and barriers are influencing its growth?
How is the ecosystem evolving by segment and region?
What will the market size be in 2020 and at what rate will it grow?
Which regions, submarkets and countries will see the highest percentage of growth?
What is the status of SDN and NFV deployments across service provider, data center and enterprise networks?
How big is the opportunity for service provider and cloud managed SD-WAN services?
How are service provider-led initiatives driving SDN and NFV investments?
How does regulation impact the adoption of software-centric networks?
What level of CapEx savings can SDN and NFV facilitate for service providers?
Do SDN and NFV pose a threat to traditional network infrastructure vendors?
Who are the key market players and what are their strategies?
What strategies should enabling technology providers, network infrastructure vendors, SDN/NFV specialists, service providers and other ecosystem players adopt to remain competitive?
The report has the following key findings:

SNS Research estimates that service provider SDN and NFV investments will grow at a CAGR of approximately 45% between 2017 and 2020, eventually accounting for nearly $22 Billion in revenue by the end of 2020.
Spearheaded by internet giants, data center operators and large enterprises, the adoption of software-centric networking is also continuing to grow in the enterprise and data center segment. SNS Research estimates that SDN and network virtualization investments in this segment accounted for $12 Billion in 2017 alone.
New market players are beginning to emerge as service providers accelerate their transition to software-centric networks. For example, with their early wins in NFV-compliant mobile core and IMS platforms, companies such as Mavenir Systems and Affirmed Networks have emerged as direct competitors to established wireless network infrastructure giants.
With the emergence of initiatives such as the Linux Foundation’s ONAP (Open Network Automation Platform), ETSI’s OSM (Open-Source MANO) and SK Telecom’s T-MANO, solutions are beginning to be commercialized that can perform integrated management and orchestration of VNFs from multiple vendors.

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List of Companies Mentioned

3GPP (3rd Generation Partnership Project)
5G PPP (5G Infrastructure Public Private Partnership)
6WIND
A1 Telekom Austria Group
A10 Networks
Accedian Networks
Accelleran
Accton Technology Corporation/Edgecore Networks
Active Broadband Networks
Actus Networks
ADARA Networks
Adax
ADLINK Technology
ADTRAN
ADVA Optical Networking
Advantech
Affirmed Networks
Agema Systems
Airspan Networks
Akamai Technologies
ALAXALA Networks Corporation
Albis Technologies
Alepo
Alianza
Allied Telesis
Allot Communications
Alpha Networks
Alphabet
ALTEN Calsoft Labs
Altice Group
Altiostar Networks
Alvarion Technologies
AMD (Advanced Micro Devices)
Amdocs
ANEVIA
Apple
Argela
Aricent
Arista Networks
ARM Holdings
ARRIS International
Artesyn Embedded Technologies
ASF (Apache Software Foundation)
ASOCS
ASPIDER-NGI
Astellia
AT&T
Athonet
ATIS (Alliance for Telecommunications Industry Solutions)
AttoCore
AudioCodes
Avaya
Avi Networks
AWS (Amazon Web Services)
Axiata Group
Baicells Technologies
Baidu
Barefoot Networks
Barracuda Networks
BCE (Bell Canada)
Benu Networks
Bharti Airtel
Big Switch Networks
Brain4Net
Broadband Forum
Broadcom
Broadpeak
Brocade Communications Systems
BT Group
CA Technologies
CableLabs
CAICT (China Academy of Information and Communications Technology)
Canoga Perkins Corporation
Canonical
Casa Systems
Cavium
CCN (Cirrus Core Networks)
Cedexis
Centec Networks
CenturyLink
CENX
Ceragon Networks
Certes Networks
CertusNet
Check Point Software Technologies
China Mobile
China Telecom
China Unicom
Ciena Corporation
CIMI Corporation
Cisco Systems
Citrix Systems
Clavister
ClearPath Networks
CloudGenix
Cloudify
CND (Core Network Dynamics)
Cobham Group
Cobham Wireless
Cohesive Networks
Colt Technology Services Group
Comcast
Comodo
Concurrent
Contela
Coriant
Corsa Technology
Cradlepoint
Creanord
Cumulus Networks
Cyxtera Technologies
DASAN Zhone Solutions
Datavision
Dell Technologies
Delta
Dialogic
Digicel
Dimetis
Django Software Foundation
Docker
Dorado Software
Druid Software
DT (Deutsche Telekom)
DXC Technology
ECI Telecom
Edgenet
Edgeware
Ekinops
ELUON Corporation
Enea
ENENSYS Technologies
EnterpriseWeb
Equinix
Ericsson
Ethernity Networks
Etisalat
ETSI (European Telecommunications Standards Institute)
Exaware
EXFO
Expeto Wireless
Expway
Extreme Networks
F5 Networks
Facebook
FibroLAN
Flash Networks
Flex
Fortinet
FRAFOS
Fraunhofer FOKUS
FreeBSD Foundation
Fujitsu
Gigamon
Global Wavenet
Google
Guangzhou Iplook Technologies
Harmonic
Hitachi
Hitachi Vantara
HPE (Hewlett Packard Enterprise)
Huawei
HUBER+SUHNER
HyTrust
IBM Corporation
IEEE (Institute of Electrical and Electronics Engineers)
IETF (Internet Engineering Task Force)
IIJ (Internet Initiative Japan)
Illumio
Imagine Communications Corporation
Infinera
Infoblox
Inocybe Technologies
Intel Corporation
Interface Masters Technologies
Intracom Telecom
IP Infusion
ip.access
IPgallery
iPhotonix
IPITEK
IRTF (Internet Research Task Force)
Italtel
ITU (International Telecommunications Union)
iwNetworks
Ixia
Joyent
Juniper Networks
Kanazawa University Hospital
KDDI Corporation
KEMP Technologies
Keysight Technologies
Kleos
KPN
KT Corporation
Lanner Electronics
Lemko Corporation
Lenovo
LG Uplus
Linker Networks
Linux Foundation
Lumeta Corporation
Lumina Networks
Luminate Wireless
Luxoft Holding
Maipu Communication Technology
Marvell Technology Group
MatrixStream Technologies
Mavenir Systems
MediaTek
MEF (Metro Ethernet Forum)
Megaport
Mellanox Technologies
Mesosphere
Metaswitch Networks
Microsoft Corporation
Midokura
Mirantis
Mojatatu Networks
MRV Communications
Mushroom Networks
NAKA Mobile
Napatech
NEC Corporation/Netcracker Technology
NetBSD Foundation
NETGEAR
Netronome
Netrounds
NETSCOUT Systems
Netsil
NetYCE
New H3C Group
NextDC
NFVWare
Ngena
Nokia Networks
Nominum
NoviFlow
NTT Communications
NTT DoCoMo
NTT Group
NXP Semiconductors
OASIS (Organization for the Advancement of Structured Information Standards)
OCP (Open Compute Project) Foundation
OMG (Object Management Group)
Omnitron Systems
One2many
ONF (Open Networking Foundation)
ONUG (Open Networking User Group)
Ooredoo
Openet
OpenStack Foundation
Openwave Mobility
Opera Software
Optelian
Optus
Oracle Communications
Oracle Corporation
Orange
Orchestral Networks
OX (Open-Xchange)
Ozono Security
P4 Language Consortium
Packet Design
Packet Fabric
Packet Ship Technologies
Padtec
Palo Alto Networks
Panda Security
Pantheon Technologies
Parallel Wireless
PCCW Global
PeerApp
Penguin
Phluido
Pica8
PicoCluster
Pivotal Software
Plexxi
Pluribus Networks
Polaris Networks
PT (Portugal Telecom)
Pulse Secure
Qualcomm
Quanta Computer
Quortus
Rackspace
RAD Data Communications
RADCOM
Radisys Corporation
Radware
Rapid7
Realtek Semiconductor Corporation
Red Hat
Redknee
Ribbon Communications
RIFT.io
RightScale
Riverbed Technology
Ruckus Wireless
Saguna Networks
Saisei
Samsung Electronics
Sandvine
Sansay
SDN/NFV Forum, South Korea
Sedona Systems
Sencore
SevOne
SFR
Silver Peak
Singtel
SiRRAN Communications
Sistelbanda
SITRONICS
SK Telecom
SoftBank Group
Sooktha
Sophos
SpiderCloud Wireless
Spirent Communications
Sprint Corporation
STC (Saudi Telecom Company)
Stormshield
SunTec
SuperCom
Supermicro (Super Micro Computer)
Swisscom
Symantec Corporation
SysMaster
Tango Telecom
Tecore Networks
Tejas Networks
Telchemy
Telco Systems
Telcoware
Telecom Italia
Telefónica Group
Telenor Group
Telrad Networks
Telstra
TI (Texas Instruments)
Tieto Corporation
TIM (Telecom Italia Mobile)
TitanHQ
TM Forum
rend Micro
Trópico
TTA (Telecommunications Technology Association of Korea)
Turk Telekom
UBIqube
Ultra Electronics
UTStarcom
vArmour
Vasona Networks
Verizon Communications
Versa Networks
Veryx Technologies
VHA (Vodafone Hutchison Australia)
Viavi Solutions
VMware
VNC (Virtual Network Communications)
Vodafone Germany
Vodafone Group
WatchGuard Technologies
Wedge Networks
Windstream Communications
Wipro
Wowza Media Systems
Xilinx
XL Axiata
XOR Media
Xtera Communications
Zoho Corporation/WebNMS
ZTE
Countires Covered

Argentina
Australia
Brazil
Canada
China
Czech Republic
Denmark
Finland
France
Germany
India
Indonesia
Israel
Italy
Japan
Malaysia
Mexico
Norway
Pakistan
Philippines
Poland
Qatar
Russia
Saudi Arabia
Singapore
South Africa
South Korea
Spain
Sweden
Taiwan
Thailand
UAE
UK
USA

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Table of Contents

1 Chapter 1: Introduction 30
1.1 Executive Summary 30
1.2 Topics Covered 32
1.3 Forecast Segmentation 33
1.4 Key Questions Answered 35
1.5 Key Findings 36
1.6 Methodology 37
1.7 Target Audience 38
1.8 Companies & Organizations Mentioned 39

2 Chapter 2: An Overview of SDN, NFV & Network Virtualization 43
2.1 What is Network Virtualization? 43
2.2 What is SDN (Software Defined Networking)? 44
2.3 SDN Protocols 44
2.3.1 OpenFlow 44
2.3.2 BGP-TE (Border Gateway Protocol – Traffic Engineering) 45
2.3.3 PCEP (Path Computation Element Protocol) 45
2.3.4 I2RS (Interface to the Routing System) 46
2.3.5 VxLAN (Virtual Extensible LAN) 46
2.3.6 ALTO (Application Layer Traffic Optimization) 47
2.3.7 IETF Software Driven Networks 47
2.4 SDN Implementation Approaches 47
2.4.1 Network Virtualization Approach 48
2.4.2 Evolutionary Approach 48
2.4.3 The “Central Control” Approach 49
2.5 What is NFV (Network Functions Virtualization)? 50
2.6 NFV Enabling Technologies 51
2.6.1 Cloud Computing and Network Virtualization 51
2.6.2 Open Management and Control Protocols 51
2.6.3 Industry Standard High-Volume Servers 51
2.7 NFV Implementation Architecture 52
2.7.1 NFVI (NFV Infrastructure) 52
2.7.1.1 Hardware Resources 52
2.7.1.2 Virtualized Resources 52
2.7.2 VNFs (Virtualized Network Functions) 53
2.7.3 NFV-MANO (NFV-Management and Orchestration) 53
2.7.3.1 VIM (Virtualized Infrastructure Manager) 53
2.7.3.2 NFVO (NFV Orchestrator) 53
2.7.3.3 VNF Manager 54
2.8 How SDN and NFV Differ from Each Other? 54
2.8.1 Similarities and Differences 54
2.8.2 Can Both Technologies Complement Each Other? 55
2.8.3 How Are Vendors Positioning their Solutions? 55
2.9 Market Drivers 56
2.9.1 Leveraging Generic Low-Cost Hardware 56
2.9.2 Multi-Tenancy on Same Hardware 56
2.9.3 Reduced Power Consumption 56
2.9.4 Faster TTM (Time-to-Market) 56
2.9.5 Improved Operational Efficiency & Performance 57
2.9.6 Centralized Provisioning and Network Control 57
2.9.7 Ability to Launch New Services & Virtual Networks Quickly 57
2.9.8 Dynamic Scaling of Services 58
2.9.9 Opening the Door to Multi-vendor Interoperability 58
2.9.10 CapEx and OpEx Reduction 58
2.9.11 Fast Troubleshooting and Improved Diagnostics 58
2.9.12 Vendor Support 58
2.10 Market Barriers 59
2.10.1 Lack of Standardization & Technology Maturity 59
2.10.2 Uncertain Cost-Benefits Tradeoffs 59
2.10.3 NFV May Slow/Delay Traffic 59
2.10.4 Will Multi-vendor Interoperability Really Work? 60
2.10.5 Co-Existence with Legacy Networks: Integration Challenges 60

3 Chapter 3: SDN & NFV Use Case Scenarios 61
3.1 Enterprise, Data Center & Generic Use Cases 61
3.1.1 Network Virtualization 61
3.1.2 Data Center Optimization 61
3.1.3 SD-WAN (Software Defined WAN) 62
3.1.4 Tap Aggregation 62
3.1.5 Dynamic WAN Re-Routing 63
3.1.6 Network Exchange: Interconnecting Physical Networks 63
3.1.7 Improved Traffic Engineering 63
3.1.8 Converged Storage 64
3.2 Service Provider Centric Use Cases 65
3.2.1 vRAN (Virtualized RAN) & Cloud RAN 65
3.2.2 Wireline Fixed Access Network Virtualization 67
3.2.3 vCPE/uCPE (Virtualized & Universal Customer Premises Equipment) 67
3.2.4 Mobile Backhaul Virtualization 68
3.2.5 Mobile Core & Gi-LAN Virtualization 68
3.2.6 IMS & VoLTE Virtualization 70
3.2.7 DPI Virtualization 70
3.2.8 Policy Control Virtualization 71
3.2.9 OSS/BSS Virtualization 71
3.2.10 Virtual Routers 71
3.2.11 Virtualization & Control of Security Functions 72
3.2.12 Virtualization of CDNs (Content Delivery Networks) 72
3.2.13 MEC (Multi-Access Edge Computing) 72
3.2.14 Network Slicing 73
3.2.15 Service Chaining 74
3.2.16 Bandwidth-on-Demand 75
3.2.17 Packet-Optical Integration 75
3.2.18 SDN/NFV Iaas (Infrastructure-as-a-Service) 76
3.2.19 VNFaas (VNF-as-a-Service) 77
3.2.20 VNPaaS (Virtual Network-Platform-as-a-Service) 77

4 Chapter 4: SDN & NFV Deployment Case Studies & Commitments 79
4.1 Case Studies 79
4.1.1 AT&T 79
4.1.1.1 Overview 79
4.1.1.2 Key Vendors 79
4.1.1.3 SDN/NFV Deployment Review 80
4.1.2 Baidu 83
4.1.2.1 Overview 83
4.1.2.2 Key Vendors 83
4.1.2.3 SDN/NFV Deployment Review 83
4.1.3 CenturyLink 86
4.1.3.1 Overview 86
4.1.3.2 Key Vendors 86
4.1.3.3 SDN/NFV Deployment Review 86
4.1.4 Equinix 90
4.1.4.1 Overview 90
4.1.4.2 Key Vendors 90
4.1.4.3 SDN/NFV Deployment Review 90
4.1.5 Google 93
4.1.5.1 Overview 93
4.1.5.2 Key Vendors 93
4.1.5.3 SDN/NFV Deployment Review 93
4.1.6 NTT Group 97
4.1.6.1 Overview 97
4.1.6.2 Key Vendors 97
4.1.6.3 SDN/NFV Deployment Review 97
4.1.7 SK Telecom 101
4.1.7.1 Overview 101
4.1.7.2 Key Vendors 101
4.1.7.3 SDN/NFV Deployment Review 101
4.1.8 Telefónica Group 105
4.1.8.1 Overview 105
4.1.8.2 Key Vendors 105
4.1.8.3 SDN/NFV Deployment Review 105
4.1.9 Verizon Communications 109
4.1.9.1 Overview 109
4.1.9.2 Key Vendors 109
4.1.9.3 SDN/NFV Deployment Review 109
4.1.10 Vodafone Group 112
4.1.10.1 Overview 112
4.1.10.2 Key Vendors 112
4.1.10.3 SDN/NFV Deployment Review 112
4.2 Review of Other SDN & NFV Commitments 115
4.2.1 Service Providers 115
4.2.1.1 A1 Telekom Austria Group 115
4.2.1.2 Altice Group 115
4.2.1.3 ASPIDER-NGI 116
4.2.1.4 Axiata Group 116
4.2.1.5 BCE (Bell Canada) 116
4.2.1.6 BT Group 116
4.2.1.7 China Mobile 117
4.2.1.8 China Telecom 117
4.2.1.9 China Unicom 117
4.2.1.10 Colt Technology Services Group 118
4.2.1.11 Comcast 118
4.2.1.12 Digicel 118
4.2.1.13 DT (Deutsche Telekom) 119
4.2.1.14 Etisalat 119
4.2.1.15 IIJ (Internet Initiative Japan) 119
4.2.1.16 KDDI Corporation 120
4.2.1.17 KPN 120
4.2.1.18 KT Corporation 120
4.2.1.19 LG Uplus 121
4.2.1.20 NAKA Mobile 121
4.2.1.21 Ngena 121
4.2.1.22 Ooredoo 121
4.2.1.23 Orange 122
4.2.1.24 PCCW Global 122
4.2.1.25 Singtel 122
4.2.1.26 SoftBank Group 123
4.2.1.27 Sprint Corporation 123
4.2.1.28 STC (Saudi Telecom Company) 123
4.2.1.29 Swisscom 124
4.2.1.30 Telecom Italia 124
4.2.1.31 Telenor Group 124
4.2.1.32 Telstra 125
4.2.1.33 Turk Telekom 125
4.2.1.34 Windstream Communications 126
4.2.2 Enterprises & Data Centers 127
4.2.2.1 Internet Giants 127
4.2.2.2 Data Center Operators 128
4.2.2.3 Large Enterprises 129
4.2.2.4 SMEs (Small and Medium-Sized Enterprises) 130

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