The SDN, NFV & Network Virtualization Revenues Expand as Service Providers Seek Cost Reduction Tactics

The latest report titled, “The SDN, NFV & Network Virtualization Ecosystem: 2016 - 2030 - Opportunities, Challenges, Strategies & Forecasts” explains and covers all factors that are and will be responsible for shaping the way SDN, NFV, and network virtualization are utilized.

According to the report, the SDN, NFV & network virtualization ecosystem will see a growth in investments of as high as a 46% CAGR within a forecast period from 2016 to 2020. By the end of 2020, it is expected to cover for US$18 bn in revenue. The many advantages of utilizing software defined networking and network virtualization systems are now too apparent to many enterprises, IT companies, and data center providers. These technologies are instrumental in allowing their host to reap the benefits of being able to provide high quality services to the community of telecom service providers.

The nature of mobile traffic can often become unpredictable and explosive, and SDN, NFV & network virtualization ecosystems can significantly improve the ease with which service providers can handle these spikes in traffic. Not only that, but SDN and network virtualization services can allow service providers to reduce their CapEx and OpEx loads. This is achieved by the SDN, NFV & network virtualization ecosystems while reducing the dependence of a service provider on expensive and proprietary hardware platforms. This forms the key driver for SDN, NFV & network virtualization platforms in all aspects of telecommunications.

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A lot of mobile operators and internet service providers are already showing high interest for investing in SDN and NFV, especially in the functional areas of transport networks, content delivery networks, customer premises equipment, policy control, IMS, and EPC/mobile core. In fact, close to 70% of the volume of virtual network functions being used today are dedicated to policy control, IMS, EPC/mobile core, and virtualized CPE. The report continues to state that by 2020, close to 80% of all new EPC investments will be done in the virtual format.

According to the report, SDN suffers from a low rate of adoption by service providers as they have only recently begun assimilating this technology into their own managed networks. Meanwhile, SDN has already found great success across the domains of enterprises and data centers.

A few of the key players involved in the SDN, NFV & network virtualization ecosystem include Accedian Networks, ADLINK Technology, Alcatel-Lucent, Alpha Networks, Amdocs, BlueCoat, BT Group, Catbird Networks, Ciena Networks, Cellwize, Cisco Systems, Dorado Software, Google, Inc., Huawei, IBM, Intel Corporation, Linux Foundation, Nokia Networks, Oi Brazil, Samsung Electronics, Red Hat, Symantec Corporation, Vodafone Group, and Zoho Corporation.

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