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NFV Market to Come Could Be Big

By Steve Anderson April 11, 2017

Right now, looking at the market ahead for network functions virtualization (NFV), along with software defined networking (SDN) and wireless network infrastructure, is almost like looking at a Fourth of July fountain firework whose fuse has burned through. The market is left to wonder if this particular item is a dud, or if it will unexpectedly explode into a shower of sparks, here representing profit. A new report from MarketResearchReports shows off what's going into our fountain of a market, and how it could be huge or disastrous ahead.

The report sets the stage nicely by pointing out that systems like NFV, SDN, and wireless network infrastructure do an excellent job of taking the capital expenditure (Capex) burden off businesses by spreading it out to be more of an operational expenditure (Opex) burden. With growing demands for high-speed networking capability thanks to a growing array of services available, that's putting particular demand on wireless infrastructure.

The good news, in turn, is that NFV, SDN, and wireless network infrastructure often help on this front by not only taking CAPEX largely off the table, but also by reducing overall OPEX figures at least somewhat by offering reduced space and power requirements, along with labor requirements. Since someone else is doing the heavy lifting at the other end, that means less demand for man-hours to keep the system going.

With improved cost pictures on one side, and a clear demand for the services that SDN, NFV and wireless infrastructure can allow for on the other, mobile operators are increasingly pushing toward these technologies to help save costs and deliver value to the end user. That's leading some, like SNS Research, to project big gains, as SNS projects service providers will invest a combined total of over $18 billion. It helps that this investment will cover several different fronts, starting with mobile core systems, policy control, customer premises equipment and others before spreading out from there.

That's great news for the NFV, SDN and wireless infrastructure markets; it means some potentially big moves ahead. As with any market, though, there are challenges; with an infrastructure-based market, that's especially true. Worldwide economic uncertainty may well lead customers to follow an if-it-ain't-broke philosophy that encourages maintenance of what's already in place rather than large-scale purchases in a market where every dollar becomes vital to survival.

Still, with the savings these systems represent, it's a safe bet that NFV, SDN, and wireless infrastructure will be a big part of the overall market going forward for some time to come.

If you’d like to learn more about NFV, be sure to check out TMC and Crossfire Media’s newest conference and expo, Communications 20/20, happening July 18-20 at Caesars Palace in Las Vegas. The event will focus on the next wave of technology and innovations that will transcend the importance of person to person contact, disrupting the future of the entire communications industry. Find out more HERE.

Edited by Alicia Young

Contributing Writer

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