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SDN, NFV and Network Virtualization to See Stunning Growth Due in Part to Service Provider Adoption
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November 13, 2013

SDN, NFV and Network Virtualization to See Stunning Growth Due in Part to Service Provider Adoption

By Rory Lidstone, TMCnet Contributing Writer


MarketResearch.com has added a new market research report from SNS Research on the computer hardware and networking space as part of “The SDN, NFV and Network Virtualization Bible: 2014 – 2020.” Put simply, the report states that two technologies being increasingly implemented in the enterprise IT and data center spaces — software defined networking (SDN) and network virtualization — have much to offer the telecommunications service provider community.


Indeed, SDN and network virtualization can help address the increasing demand for mobile network capacity while reducing capital and operating expense burdens by diminishing reliance on proprietary hardware platforms. For proof of this, one need look no further than the data center world, where these technologies have accomplished similar feats, or at the many service provider deployments that are already incorporating it.

Network Functions Virtualization (NFV), meanwhile, is an initiative led by service providers with the goal of virtualizing network components in service provider networks. While still a developing technology — ETSI (News - Alert) released its first set of NFV specifications in October — many vendors have already begun developing commercial-grade solutions that align with the NFV initiative. In other words, it’s clear service provider network virtualization is already a reality.

Still, SNS Research believes service provider network virtualization is still in a nascent stage compared to network virtualization in the enterprise IT data center space. By 2020, however, the firm expects that SDN and NFV will enable both wireless and wireline service providers to save up to $32 billion in annual CapEx investments.

Overall, it is expected that the SDN, NFV and network virtualization market will achieve revenue of $4 billion in 2014. Although there are barriers to the market’s growth — primarily standardization and co-existence with legacy networks — SNS expects it will maintain a compound annual growth rate of almost 60 percent over the next six years.




Edited by Blaise McNamee


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