Carrier NFV & SDN Spending Forecast to Hit $18B by End of 2020

By Paula Bernier May 11, 2016

SNS Research is promoting a new study called “SDN, NFV & Network Virtualization Ecosystem: 2016-2030 – Opportunities, Challenges, Strategies & Forecasts” that estimates service provider investments in this realm are poised to reach $18 billion in revenue by the end of 2020.

The report also indicates that EPC/mobile core, IMS and policy control platforms, and virtualized CPE represent almost 70 percent of virtual network function software spending. And it suggests that by 2020 nearly 80 percent of EPC investments will be virtualized. Other service provider-related topics explored in this study include billing and operational support systems, CDN, data center, fixed access networks, orchestration, radio access networks, and transport and backhaul, and voice over LTE.

Orchestration has, of course, been a hot topic related to service providers’ move to more software-centric networks. And the report talks about this. In fact, it estimates that spending on orchestration platforms will exceed $1.6 billion by the end of 2020, accounting for 10 percent of service provider NFV/SDN spending.

This study looks at enterprise and data center implementations and issues related to NFV and SDN as well. That includes discussions about controller software, hardware appliances, virtual switch categories, and more.

The report also explores the capital expense savings potential of NFV and SDN; enabling architecture, protocols, technologies, and trends; and market drivers of and barriers to the adoption of these technologies. It also features market analysis and forecasts from this year through 2030. It addresses the industry roadmap and value chain; orchestration and management platforms; and profiles and strategies of more than 240 organizations in the ecosystem. It accesses the regulatory landscape and presents an update on where standardization is and where it’s going. The report also offers up strategic recommendations for those in the ecosystem. And it presents various applications, case studies, proof of concept efforts, and use cases.

Edited by Stefania Viscusi

Executive Editor, TMC

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