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2014/04/08 SDN and NFV moving from lab to field trials; Operators name top NFV use case

 Campbell, CALIFORNIA, April 3, 2014—Market research firm Infonetics Research released excerpts from its 2014 SDN and NFV Strategies: Global Service Provider Survey, for which leading operators–representing 51% of worldwide telecom capex–were interviewed to determine the timing and priority of the many use cases for their software-defined networking (SDN) and network functions virtualization (NFV) projects.

ANALYST NOTE

“This is the year that SDN and NFV move from the lab to field trials. Many carriers are in the process of moving from SDN/NFV proof-of-concept projects to working with vendors in the development and ‘productization’ of software that will become the basis for commercial deployments. I saw a lot of this software running in demos in vendor and operator stands at the recent Mobile World Congress, and it’s easy to see it is much more real this year,” notes Michael Howard, co-founder and principal analyst for carrier networks at Infonetics Research.


Howard adds: “Over the coming months, a few operators will move to actual commercial deployments, mostly specific NFV use cases, but only a few. It won’t be until 2015 that we’ll see commercial deployments kick into motion, still most likely on a limited basis, as operators put one or two use cases to the test under real world conditions, in their live networks.”


SDN AND NFV STRATEGIES SURVEY HIGHLIGHTS
  • 29% of survey participants are currently implementing SDNs, and 52% plan to evaluate SDNs by the end of 2014
  • Nearly every operator Infonetics surveyed plans to deploy SDN (97%) or NFV (93%) in some aspect of their network at some point
    • A majority of respondents are targeting the MPLS backbone core and cloud services for SDN first, then multilayer transport
  • Survey respondents rated business vE-CPE (using NFV for the delivery of services to businesses/enterprises) the #1 use case overall for NFV in 2014–2015; business vE-CPE is also ranked the top use case for revenue generation
  • Meanwhile, back office OSS/BSS was cited as the biggest barrier to deploying NFV by respondents
  • Telecom and data center equipment vendors are well positioned to take considerable market share in SDN/NFV, with virtually all respondents stating they are likely to buy from the major vendors
  • As carriers expect to eventually reduce spending on telecom hardware and software, a good way for vendors to increase revenue is by beefing up integration services to meet customers’ needs and expectations


Source: Infonetics Research
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