Network Function Virtualization Market to Significant Growth Foreseen by 2020
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The primary goals of network function virtualization are to reduce power consumption and reduce equipment cost, facilitate the accessibility of several applications on one single network appliances with multi tenancy and multi version capabilities. Network function virtualization reduces capital expenditure (CAPEX) and operational expenditure (OPEX). These networks support a dynamic ecosystem through the development and utilization of software solutions. All the benefits of FV are derived from use commercial off the shelf (COTS) hardware that can be purposed and repurposed for multiple telecom related services that currently use proprietary hardware. Network function virtualization adopts the concept of virtualization and providing the benefit to telecommunication application infrastructure. Network function visualization supports software defining network (SDN) by providing the infrastructure upon which SDN software can be run.
The market for network function virtualization is driven by several factors including increase in demand for data intensive applications and need of cloud based services. Over the past few years the mobile industry has witnessed exceptional demand for data intensive applications which further demands for enhanced network capacity to match the user requirement. The growth of market is hindered by factors such as delay in adoption of technology. Due to nascent stage of optimization solution, vendors need more opportunities to accomplish more target customers. One of the major trends in network function virtualization market is the increasing demand for virtual server access ports. The network function virtualization market across the globe is expected to show a substantial growth with a double digit increase in CAGR by the year 2019. The global market shows immense potential because of the presence of certain trends and due to the cost benefits and high flexibility provided by b the network solutions.
The market for network function virtualization is segmented on the basis of applications and geography. On the basis of application the market for network function virtualization can be segmented into switching elements (Routers), traffic analysis, service assurance, next generation signaling, security function and others. The geographical analysis of the market is done on the basis of North America, Europe, Asia Pacific and Rest of World.
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Some of the major players in the market include Ericsson AB, Alcatel-Lucent SA, Huawei technologies Co. Ltd., 6Wind SA, Nokia Solutions and Network, Amdocs Inc., Connectem Inc., CIMI Corporation, ContexXtream Inc., Intel Corporation, F5 Network Inc., Juniper Network Inc., Open Wave Mobility Inc., NEC Inc., Oracle Corporation and Opera Software Asa among others.
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