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SDN and NFV technology in telecom network transformation in Telecom Network Transformation Market Analysis Report, 2026

12-20-2016 09:33 AM CET | IT, New Media & Software

Press release from: Persistence Market Research Pvt. Ltd

SDN and NFV technology in telecom network transformation

SDN and NFV technology in telecom network transformation and network function virtualization (NFV) are two separate networking technologies that are becoming backbone of any communication network now-a-days. These technologies provide ease in operating a communication network. While SDN facilitates a telecom operator to reduce the network complexity and bring down the overall management cost, NFV makes a particular network completely software agnostic. Enterprises, cloud service providers, and telecommunication service providers are biggest beneficiaries of this.

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In telecommunication sector, there is a lot of margins pressure on service providers, due to the changing needs of consumers such as data consumption and usages of OTT services. Conventional networks of service providers are not capable to handle this particular demand from consumers. That’s why they are reconfiguring their network with the help of SDN and NFV technologies, in order to manage the challenges of traffic explosion and increase the average revenue per user (ARPU).

The major reason behind the adoption of SDN and NFV by service providers in their network transformation is because SDN and NFV technologies are synergetic and they offer improved programmability, faster service enablement, and most importantly lower down the overall CAPAEX and OPEX for the service providers. SDN and NFV provide a complete digital network that is essential to increase customer satisfaction level. SDN and NFV technology in telecom network transformation emerged as paradigm that has potential to transform service providers’ networks by delivering cloud style nimbleness and innovation.

The communication network telecom service providers are generally more complex, multilayer, and have variety of users that require high network availability and performance. As compared to data centers, a more stringent set of requirements will need to be met, in order to deploy SDN and NFV in these network.

SDN and NFV technology in telecom network transformation in telecom network transformation market can be segmented on the basis of component, technology, and region. Component category include software and different types of services such as professional services and managed services. On the basis of technology, the market can be segmented into SDN and NFV. Region wise, the Market can be segmented into North America, Latin America, Asia Pacific, Japan, Eastern Europe, Western Europe, and Middle East & Africa.

Cisco System Inc. Hewlett Packard Enterprise, IBM Corporation, Juniper Networks, Pica8, Inc., Intel Corporation, and Big Switch Networks, Inc. are some of the big players of global SDN and NFV technology in telecom network transformation market.

North America is the largest SDN and NFV market as most of the technology providers such as Cisco, IBM, and Hewlett Packard Enterprise are based in the North America region and are making huge investment over there. Also, due to the ongoing advancements in 4G and 5G technologies the US, telecommunication service providers are deploying SDN and NFV at every layer of their network.

In Europe region, technology service providers have already understood the value proportion of SDN and have already started deploying SDN in their networks but enterprise market still remain gloomy in terms of adoption of SDN.

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In Asia Pacific region, growth in countries such as China, India, and Japan are immensely contributing in the market. In India, the telecommunication services industry is going through the transformation and service providers have started to deploy SDN and NFV technology in telecom network transformation at massive scale.

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