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Network Functions Virtualization (NFV) Market: Business Case, Market Analysis and Forecasts 2015 - 2020

Network Functions Virtualization (NFV) Market: Business Case, Market Analysis and Forecasts 2015 - 2020

Network Functions Virtualization (NFV) is a telecom led initiative that aims to utilize standard IT virtualization technology to consolidate many telecom network equipment types onto industry standard high volume servers, switches and storage. NFV involves implementing network functions in software that can run on a range of industry standard server hardware, and that can be moved to, or instantiated in, various locations in the network as required, without the need to install new proprietary equipment.

With a promise to drive significant CapEx and OpEx reductions, NFV is poised to transform the entire telecom infrastructure ecosystem. Mind Commerce estimates that the overall global market for NFV will grow at a CAGR of 83.1% between 2015 and 2020. NFV revenues will reach $ 8.7 Billion by the end of 2020.

This report provides an in-depth assessment of the global NFV market, including a study of the business case, technology, use cases, vendor landscape, and a quantitative assessment of the industry from 2015 to 2020. All purchases of Mind Commerce reports includes time with an expert analyst who will help you link key findings in the report to the business issues you're addressing. This needs to be used within three months of purchasing the report.

The addresses the following key topics:

Key Issues in NFV: An assessment of key issues related to NFV
NFV Technology: A review of the underlying technologies that enable NFV
The Business Case for NFV: An assessment of the business case, growth drivers and barriers for NFV
Vendor Assessment: An assessment of the vendor landscape of leading players within the NFV market
Market Analysis and Forecasts: A global and regional assessment of the market size and forecasts for the NFV market from 2015 to 2020

Target Audience:

SDN solution providers
Mobile network operators
Telecom infrastructure providers
Cloud and virtualized datacenters
NFV technology/solution vendors
Telecom service providers of all types
Digital content and application providers

General Methodology

Mind Commerce Publishing's research methodology encompasses input from a wide variety of sources.

We rely heavily upon our Subject Matter Experts (SME) in terms of their market knowledge, unique perspective, and vision. We utilize SME industry contacts as well as previous customers and participants in our market surveys and interactive interviews.

In addition, we rely upon our extensive internal database, which contains modeling, qualitative analysis, and quantitative data. We review secondary sources and compare to our primary sources to update previous findings (for prior version reports) and/or compile baseline information for technology and market modeling.

We share preliminary models with industry contacts (select previous clients, experts, and thought leaders) to verify the veracity of initial modeling. Prior to final report production (analysis, findings, and conclusions), we engage in an internal review with internal SMEs as well as cross-expertise, senior staff members to challenge results.

We believe that forecasts should be prepared as part of an integrated process which involves both quantitative as well as qualitative factors. We follow the following 3-step process for forecasting.

Forecasting Methodology

Step 1 - Forecasts Input: The inputs for the present and historical revenues are derived from industry players. Financial and other quantitative data for individual sub-market categories are derived from original research and tested with interviews with major industry constituents.

Step 2 - Forecasting of Future Years: Mind Commerce extends forecasts based on a variety of factors including demand drivers as well as supply side data. Key success factors and assumptions are considered.

Step 3 - Validation of Data: The final step is to validate projections, which is accomplished in consultation with both internal and external industry experts, including both topic and regional experts. Adjustments are made to the forecasts based on factors identified throughout this process.


1 Introduction
1.1 Topics Covered
1.2 Target Audience
1.3 Companies Mentioned
2 Executive Summary
2.1 Global NFV Market 2015 - 2020
2.2 Key NFV Trends through 2020
3 Virtual Networking: The Booming Industry of the Decade
3.1 Network
3.2 Industry Trends in Network Infrastructure
3.2.1 Legacy Networking Environment Is Incapable of Elastic Networking Demand
3.2.2 Converged Data Traffic a New Challenge
3.2.3 A Need for Dynamic Networking Is Growing
3.2.4 Scalability Is a New Challenge For IT Teams
3.2.5 Lack of Flexible Hardware at Peak Times
3.2.6 Increasing Network Utilization Need More NICs
3.2.7 Evolution of Standards for Converging IT and Telecommunication Services
3.2.8 Telecom Operators Look For Ease of Multivendor Purchase and Interoperability
3.3 Upcoming Solutions to Resolve Networking Challenges
3.4 Virtualization
3.4.1 Virtualization Software
3.5 Virtual Datacenter
3.5.1 Types of Virtual Datacenter
3.5.1.1 Hardware Virtualized Datacenter
3.5.1.2 Software Defined Datacenter (SDCC)
3.5.2 Use of Virtual Datacenter in Telecommunication
3.6 Server Virtualization
3.7 Storage Virtualization
3.7.1 Block Level Virtualization
3.7.2 File Level Virtualization
3.8 Network Virtualization
3.8.1 Software Defined Network (SDN)
3.8.2 Network Function Virtualization
3.9 Differences between NFV, NV and SDN
4 NFV Concept, Role and Key Benefits
4.1 Concept of NFV
4.2 Features of NFV
4.3 Role of NFV
4.4 Key Benefits that Address NFV
5 NFV Architectural Framework and Fundamentals
5.1 NFV Reference Architectural Framework
5.2 NFV Infrastructure (NFVI)
5.2.1 VNF Forwarding Graph (VNF FG)
5.3 NFV Proofs of Concept (PoC)
5.4 NFV Use Cases
5.4.1 Service Chaining of NFs for Carriers
5.4.2 Multi-vendor Distributed NFV
5.4.3 NFV IaaS
6 Status of NFV in 2014
6.1 Key Developments and Deployments of NFV
6.1.1 Nokia Networks Shipped First Commercial NFV Solution
6.1.2 Huawei Leads Telco Transformation via Commercial Deployments of SDN and NFV
6.1.3 Dell introduced NFV starter Kit in October 2014
6.1.4 Alcatel-Lucent Announced a Portfolio of Virtualized Mobile Network Function Applications
6.1.5 Radisys Launched T-100 Series for Virtualized Data Plane for NFV
6.1.6 Amdocs launched Network Cloud Service Orchestrator
6.1.7 Ericson Launched an OPNFV Certification Program
6.1.8 Telefónica and NEC Showcased Residential vCPE on NFV Platform
6.2 NFV Trials in 2014
6.2.1 Telekom Austria Group among the First Operators in Europe to Present NFV Trial
6.2.2 Telekom Austria Group Trials NFV-based IMS with Project Clearwater
6.2.3 NTT DoCoMo Conducts NFV Trials with Different Combination of Six vendors
6.2.4 KT and Alcatel-Lucent to run NFV Trials in Korea
6.3 Schedule of ETSI NFV Releases
6.3.1 Finalized and Published Works on NFV at ETSI
6.3.2 Works to be completed on NFV at ETSI
6.4 OPNFV: Linux Foundation Collaborative Projects
6.5 CloudNFV Consortium
7 NFV Business Case
7.1 Background:
7.2 Solution:
7.3 Necessity of NFV
7.4 Benefits of implementing NFV
7.4.1 CAPEX / OPEX Reduction
7.4.2 Improved Time to Market
7.4.3 Improved Scalability of Services and Network Topology
7.4.4 Energy Reduction and Improved Operational Efficiency
7.5 Challenges in Implementing NFV
8 NFV Global Markets 2015 - 2020
8.1 State of the NFV Market in 2014
8.2 NFV Markets 2015 through 2020
8.2.1 NFV Platforms will be the Entry Point for Hardware Virtualization Vendors in NFV Space
8.2.2 Virtual Network Functions Will Lead the Markets in First Half of the Forecast Period
8.2.3 The Second Half of Forecasting Period Will See Rise in the Service Based NFV
9 NFV Vendor Landscape
9.1 Vendor Status
9.1.1 6WIND
9.1.2 Alcatel-Lucent
9.1.3 Amdocs
9.1.4 Cisco
9.1.5 Connectem
9.1.6 ConteXtream
9.1.7 Ericsson
9.1.8 F5
9.1.9 Huawei
9.1.10 Intel
9.1.11 Juniper
9.1.12 NEC
9.1.13 NSN
9.1.14 Openwave Mobility
9.1.15 Skyfire/Opera
9.1.16 Oracle
9.1.17 RAD Data Communications
10 Conclusions and a Looking Towards the Future
10.1 Key Issues in an NFV World
10.1.1 What are Key Elements from a Cost/Performance Perspective?
10.1.2 Dimensioning and Elasticity
10.1.3 Transition from Now to New: Fork-lift vs. Selective Implementation
10.1.4 Does NFV help in Content Delivery?
10.1.5 Does NFV help in Contextual Communications?
10.1.6 Will NFV Generate New Revenues, Services, and Applications?
10.1.7 Does NFV open the Industry for Net Gains with Non-traditional telcos?
10.1.8 Could an Enterprise integrate its Cloud/IT Services with NFV and Realize Benefits?
10.2 Final Conclusions
Figures
Figure 1: Global NFV Markets: 2015 – 2020
Figure 2: Types of Virtualization
Figure 3: High Level NFV Framework
Figure 4: NFV Reference Architectural Framework
Figure 5: COTS Hardware in an NFV Setup
Figure 6: NFV Infrastructure
Figure 7: NFV Infrastructure domains
Figure 8: NFV End to End Network
Figure 9: CloudNFV Open Framework
Figure 10: NFV Deployment by Type 2015 - 2020
Figure 11: Cloud Management and Orchestration
Tables
Table 1: Global NFV Markets: 2015 – 2020
Table 2: Next Generation Networking Concepts
Table 3: Types of Server Virtualization
Table 4: Comparison between SDN, NFV and NV
Table 5: Completed PoC: ETSI
Table 6: Ongoing PoC: ETSI
Table 7: NFV Tasks Completed/Finalized at ETSI
Table 8: NFV Tasks in Progress at ETSI
Table 9: NFV Markets by Deployment Type 2015 – 2020

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