Sponsored By
Service provider SDN and NFV investments will grow at a CAGR of 46% between 2016 and 2020, en route to eventually racking up $18 billion in revenue by the end of 2020, according to a recent report.
While SDN and NFV have established their chops in the enterprise IT and data center world, the big benefits for service providers are largely ahead, albeit with some growing pains. (See Vodafone Frustrated by NFV Immaturity and NFV Needs 'Human Revolution,' Says Orange.)
Currently, virtualized CPE, EPC/mobile core, IMS and policy control platforms account for nearly 70% of all virtual network function (VNF) software investments, according to a report by SNS Research. SNS Research estimated that by 2020, nearly 80% of all new EPC investments would be virtualized.
SNS's report also touched on service providers' need for better orchestration in their networks. Investments in orchestration platforms will account for over $1.6 billion in revenue by the end of 2020, representing nearly 10% of all service provider SDN and NFV spending, according to the report. (See Verizon's Hakl: Gray Boxes Aren't Helping .)
— Mike Robuck, Editor, Telco Transformation
