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Study Anticipates Strong Growth for vCPE

By Paula Bernier January 05, 2017

The virtual customer premises equipment is poised for strong growth over the next five years, according to Stratistics MRC. The firm anticipates the global vCPE space, which was worth $347.41 million in 2015, will experience a compound annual growth rate of 38.1 percent between then and 2022.

This growth, Stratistics MRC suggests, is due in large part to demand for cloud-based solutions and the desire for cost optimization related to the elimination of some hardware maintenance overhead. However, the firm suggests, security concerns related to new virtualized architectures could serve to inhibit the market.

Beyond just the software, the uptake of virtualized customer premises equipment will create new revenues in the form of professional services, Stratistics MRC says. In fact, the research firm says the professional service segment is expected to dominate the market. However, it adds, it will be managed services that will be the faster growing space in this market.

Key players in the vCPE space, according to the firm, include Arista Networks, Brocade Communications Systems Inc., Cisco Systems Inc. Dell Inc., Ericsson, Hewlett Packard Enterprises, International Business Machines Corp., Juniper Networks Inc., NEC Corp. and Versa Networks.

“With NFV, when you chain together Physical Network Functions (PNFs) and Virtual Network Functions (VNFs), and make the VNF chaining dynamic, VNFs can be added or removed on-the-fly,” GigaSpaces CTO Nati Shalom mentioned in a recent interview with TMC, which hosts NFV Zone. “For example, if you have a basic connection from the CPE to the cloud, you can provision a virtual firewall in the cloud to add security. You can also provision URL filtering to block URL content or deep packet inspection for traffic analysis.”

He adds that vCPE and SD-WAN are the most popular solutions being offered, and driven, by service providers. Shalom adds that mobile core components such as vEPC, SBC, and vIMS are also very common.




Edited by Alicia Young

Executive Editor, TMC

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