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Software Defined Networks (SDN) and Network Function Virtualization (NFV) Market, Forecasts, and Impact on Network Operators 2015 - 2020

Software Defined Networks (SDN) and Network Function Virtualization (NFV) Market, Forecasts, and Impact on Network Operators 2015 - 2020

Software defined networking (SDN) and virtualization are poised to transform network and service architecture thanks to improvements in technologies that offer improved performance and lower costs. As the border between Cloud Computing and network infrastructure continues to blur, so does the demarcation between the network as a whole and those network elements (servers, terminals, etc.) that comprise the network.

Communications Service Providers (CSP) will benefit from improved economics brought forth by Network Function Virtualization (NFV) as carriers leverage CPU virtualization and other Cloud techniques to migrate previously expensive network functions to cheaper general-purpose hardware running virtual machines.

This research evaluates the technologies, market drivers and outlook for SDN and NFV in telecommunications networks. The report assesses the implications for SDN and NFV on the telecom ecosystem and analyzes the impact of different approaches. The report includes market forecasts for SDN and NFV from 2015 through 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.

Key Findings:

NFV revenues will reach $ 8.7 Billion by the end of 2020
Pilot and trial SDN installations will predominate through 2016
Carrier grade SDN will reach to $3 billion with a CAGR of 45.9%
Enterprise grade SDN will reach to near $8 billion value with a CAGR of 56.5%
Mind Commerce sees the SDN market reaching $ 11.3 billion by 2020 with a CAGR of 53%
The overall global market for NFV will grow at a CAGR of 83.1% between 2015 and 2020

Target Audience:

Network operators
SDN solution providers
Cloud-based service providers
Virtualization solution providers
Telecom infrastructure providers
Network infrastructure providers
Cloud and virtualized datacenters
NFV technology/solution vendors
OSS/BSS and optimization companies
Telecom service providers of all types
Digital content and application providers
Application developers and API companies
Managed communications services companies

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
2 Executive Summary
2.1 Global SDN Markets: 2015 - 2020
2.1.1 Key Highlights of 2015 - 2020
2.2 Global NFV Market 2015 - 2020
2.2.1 Key NFV Trends through 2020
3 Overview
3.1 What is a 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 needs 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
3.3.1 Network Virtualization
3.3.2 Network Function Virtualization
3.3.3 Software Defined Network (SDN)
3.4 Comparison between NV, NFV and SDN
3.5 How SDN Differs from NV and NFV
1.1.1 SDN & NFV
3.5.1 SDN Is not a Virtualization Technology
3.5.2 SDN vs. Network Virtualization
3.6 Benefits of Next Generation Networking Solutions
3.6.1 Reduction in Capital and Operational Costs
3.6.2 Increased Business Agility and Control
1.1.2 Flexibility to Leverage Datacenter into Cloud Infrastructure
3.7 Software Defined Networking (SDN) Solution
3.8 Fitment of SDN in Changing Networking Needs
3.9 History of SDN Evolution
3.10 The Three Models of SDN
3.11 Standard SDN Architecture
3.12 Key Components of SDN Architecture
3.12.1 SDN Controller
3.12.1.1 Opensource SDN Controllers
3.12.1.2 Commercial SDN Controllers
3.12.2 Southbound and Northbound APIs
1.1.3 Southbound APIs
1.1.3.1 OpenFlow
1.1.3.2 NETCONF
1.1.3.3 ForCES
1.1.3.4 PECP
1.1.4 Northbound APIs
3.12.3 Common language APIs for SDN and NFV
1.2 Migrating to the SDN
4 Software Defined Everything
4.1 Software Defined Data Center (SDDC)
4.2 Software-Defined Storage
4.3 Software-Defined Telecom Networks
4.4 Software-Defined Machines: The Internet of Things
5 SDN Solutions for Enterprise and Network Operators
5.1 Enterprise SDN
1.3 Carrier SDN
5.2 Enterprise SDN vs. Carrier SDN
5.3 SDN Global Markets: 2015-20
5.3.1 SDN Pilot Projects from 2014 and Trials through 2020
5.3.2 Through 2020 SDN will Experience a Major Market in Greenfield Deployments
5.4 Markets for Prominent SDN Enterprise Use Cases 2015 - 2020
5.5 Future Prospects in SDN market
6 Key Market Trends in the SDN
6.1 SDN will play a Key Role in the Deployment of Software Defined Datacenters
6.2 SDN, Carriers, and Virtualization
6.3 SDN is a Business Driver for Network Operators
6.4 Software-Defined Machines: The Internet of Things
7 SDN Strategies: Vendor Landscape
1.4 Proprietary SDN Controller Deployment
1.5 SDN Mergers and Acquisitions
1.6 Joint Ventures and Partnerships
7.1 Key Companies and Solution Providers
1.7 Comparative Analysis
7.1.1 Architecture Issues
7.1.2 API Management
7.1.3 SDN Security
7.2 Key Companies and Solutions
7.2.1 Alcatel-Lucent (Nuage Networks)
7.2.2 Arista Networks
7.2.3 Avaya
7.2.4 Big Switch Networks
7.2.5 Brocade/Vyatta
7.2.6 Ciena
7.2.7 Cisco
7.2.8 ConteXtream
7.2.9 Cyan
7.2.10 Dell
7.2.11 Ericsson
7.2.12 Hitachi
7.2.13 Huawei
7.2.14 HP
7.2.15 IBM
7.2.16 Intel
7.2.17 Juniper
7.2.18 Oracle
7.2.19 Plexxi
7.2.20 Pluribus
1.7.1 VMware
8 Challenges, Drivers, and Opportunities in SDN
8.1 Implementation Considerations for SDN
8.2 Architecture Issues
8.3 API Management
8.4 SDN Security
8.5 Carrier SDN Challenges and Opportunities
8.6 Key SDN Drivers and Opportunities
8.7 SDN Controller Deployment
8.8 SDNs and Programmable Networking and Application Policy
8.8.1 Cisco Application Policy Infrastructure Controller (APIC)
8.8.2 Why Application Policy is Important
8.9 Opportunities in Development of Northbound APIs
8.9.1 Application Use Cases
8.9.2 Open vs. Proprietary Northbound APIs
9 NFV Concept, Role and Key Benefits
9.1 Concept of NFV
9.2 Features of NFV
9.3 Role of NFV
9.4 Key Benefits that Address NFV
10 NFV Architectural Framework and Use Cases
10.1 NFV Reference Architectural Framework
10.2 NFV Infrastructure (NFVI)
10.2.1 VNF Forwarding Graph (VNF FG)
10.3 NFV Proofs of Concept (PoC)
10.4 NFV Use Cases
10.4.1 Service Chaining of NFs for Carriers
10.4.2 Multi-vendor Distributed NFV
10.4.3 NFV IaaS
11 Network Function Virtualization (NFV) Industry Status
11.1 Key Developments and Deployments of NFV
11.1.1 Nokia Networks Shipped First Commercial NFV Solution
11.1.2 Huawei Leads Telco Transformation via Commercial Deployments of SDN and NFV
11.1.3 Dell introduced NFV starter Kit in October 2014
11.1.4 Alcatel-Lucent Portfolio of Virtualized Mobile Network Function Applications
11.1.5 Radisys Launched T-100 Series for Virtualized Data Plane for NFV
11.1.6 Amdocs launched Network Cloud Service Orchestrator
11.1.7 Ericson Launched an OPNFV Certification Program
11.1.8 Telefónica and NEC Showcased Residential vCPE on NFV Platform
11.2 NFV Trials in 2014
11.2.1 Telekom Austria Group among the First Operators in Europe to Present NFV Trial
11.2.2 Telekom Austria Group Trials NFV-based IMS with Project Clearwater
11.2.3 NTT DoCoMo Conducts NFV Trials with Different Combination of Six vendors
11.2.4 KT and Alcatel-Lucent to run NFV Trials in Korea
11.3 Schedule of ETSI NFV Releases
11.3.1 Finalized and Published Works on NFV at ETSI
11.3.2 Works to be completed on NFV at ETSI
11.4 OPNFV: Linux Foundation Collaborative Projects
11.5 CloudNFV Consortium
12 NFV Business Case
12.1 Background:
12.2 Solution:
12.3 Necessity of NFV
12.4 Benefits of implementing NFV
12.4.1 CAPEX / OPEX Reduction
12.4.2 Improved Time to Market
12.4.3 Improved Scalability of Services and Network Topology
12.4.4 Energy Reduction and Improved Operational Efficiency
12.5 Challenges in Implementing NFV
13 NFV Global Markets 2015 - 2020
13.1 State of the NFV Market in 2014
13.2 NFV Markets 2015 through 2020
13.2.1 NFV Platforms will be the Entry Point for Hardware Virtualization Vendors
13.2.2 Virtual Network Functions Will Lead the Markets in First Half of the Forecast Period
13.2.3 The Second Half of Forecasting Period Will See Rise in the Service Based NFV
14 NFV Vendor Landscape
14.1 Vendor Status
14.1.1 6WIND
14.1.2 Alcatel-Lucent
14.1.3 Amdocs
14.1.4 Cisco
14.1.5 Connectem
14.1.6 ConteXtream
14.1.7 Ericsson
14.1.8 F5
14.1.9 Huawei
14.1.10 Intel
14.1.11 Juniper
14.1.12 NEC
14.1.13 NSN
14.1.14 Openwave Mobility
14.1.15 Skyfire/Opera
14.1.16 Oracle
14.1.17 RAD Data Communications
15 Conclusions and Outlook
15.1 Key Issues in an NFV World
15.2 What are Key Elements from a Cost/Performance Perspective?
15.3 Dimensioning and Elasticity
15.4 Transition from Now to New: Fork-lift vs. Selective Implementation
15.5 Does NFV help in Content Delivery?
15.6 Does NFV help in Contextual Communications?
15.7 Will NFV Generate New Revenues, Services, and Applications?
15.8 Does NFV open the Industry for Net Gains with Non-traditional telcos?
15.9 Could an Enterprise integrate its Cloud/IT Services with NFV and Realize Benefits?
Figures
Summary Figure 1: SDN Global Markets: 2015 - 2020
Figure 1: Global NFV Markets: 2015 – 2020
Figure 2: Relationship between NFV and SDN
Figure 3: Standard SDN Architecture
Figure 4: Southbound and Northbound APIs
Figure 5: SDN APIs
Figure 6: NFV Solution Sales Revenue: 2014 – 2019
Figure 7: CloudNFV Open Framework
Figure 8: The Future of IoT and SDN APIs
Figure 9: SDN Global Markets: 2015 – 2020
Figure 10: SDN Markets by Pilot and Commercial Deployment 2015 - 2020
Figure 11: Global SDN Market by the Use Cases 2015 – 2020
Figure 12: Data Centers and Cloud Switching Fabric
Figure 13: Cisco SDN Solution Arch
Figure 14: SDN Drivers and Opportunities
Figure 15: Orchestration and Policy Coordination
Figure 16: Northbound API Functions
Figure 18: High Level NFV Framework
Figure 19: NFV Reference Architectural Framework
Figure 20: COTS Hardware in an NFV Setup
Figure 21: NFV Infrastructure
Figure 22: NFV Infrastructure domains
Figure 23: NFV End to End Network
Figure 24: CloudNFV Open Framework
Figure 25: NFV Deployment by Type 2015 - 2020
Figure 26: Cloud Management and Orchestration
Tables
Summary Table 1: SDN Global Markets: 2015 – 2020
Table 1: Global NFV Markets: 2015 – 2020
Table 2: Next Generation Networking Concepts
Table 3: Comparison between SDN, NFV and NV
Table 4: Benefits of SDN
Table 5: Models of SDN
Table 6: Comparison of Key Opensource SDN Controllers
Table 7: Key Commercial SDN Controllers
Table 8: SDN Global Markets: 2015 - 2020
Table 9: SDN markets by Pilot and Commercial Deployments 2015 - 2020
Table 10: Global SDN Markets by the Use Cases 2015 - 2020
Table 11: Recent Acquisitions of SDN Start-ups
Table 12: SDN Ecosystem
Table 14: Completed PoC: ETSI
Table 15: Ongoing PoC: ETSI
Table 16: NFV Tasks Completed/Finalized at ETSI
Table 17: NFV Tasks in Progress at ETSI
Table 18: NFV Markets by Deployment Type 2015 – 2020

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