NFV Management & Orchestration NEWS

InterCloud System Shows Record Business Backlog of Over $38 Million

By Michael Guta August 26, 2015

The explosive capacity demand of mobile technology, cloud computing and hosted services has forced network and data center operators to reevaluate the current infrastructure and introduce innovative solutions. This has resulted in the adoption of Software Defined Networking (SDN) and Network Functions Virtualization (NFV) to address this capacity. By adopting a more intelligent approach, operators are able to manage the demand by moving away from costly propriety hardware platforms. The ecosystem has been thriving, and according to SNS Research, the SDN, NFV and network virtualization market will account for nearly $10 billion in 2015 and it will grow at a CAGR of 37 percent over the next five years.

One of the companies that is experiencing this boom is InterCloud, provider of cloud orchestration, hosting and automation solutions and services. The company announced it has a backlog of business of over $38 million, which is an all-time high for the organization as new purchase orders and long-term contracts across the business segment continue to come in.

Chairman and CEO Mark Munro stated, "I highlighted how InterCloud beat earnings estimates, grew 35 percent for the first half of 2015 over 2014, produced over $1 million of adjusted EBITDA, and continued our growth in product development and added new large enterprise and service provider customers. Now we are announcing our growing backlog and sales pipeline.”

The CEO went on to say his organization looks forward to the growth as the technology landscapes continues to move to SDN and NFV.

The InterCloud Juniper Contrail SDN platform provides flexibility, intelligent automation and always-on reliability for cloud and NFV.

Image via Shutterstock

InterCloud delivers solutions to the communications service provider and corporate enterprise markets through cloud solutions and professional services. NFV technology allows these organizations to decouple network functions such as network address translation (NAT), firewalling, intrusion detection, domain name service (DNS), and caching from propriety hardware appliances so they can run it in software. This gives IT personnel the ability to manage their resources more effectively and make it available to their customers with a higher degree of reliability.

As software based solutions become the preferred option, traditional hardware-based network switching equipment will continue to decline. SNS Research estimates SDN and NFV will give wireline and wireless operators savings totaling up to $32 billion in annual CAPEX investments by 2020. 




Edited by Dominick Sorrentino

NFVZone Contributing Writer

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