How NFV, SDN and Cloud are Disrupting the Telecom Sector

Telecom vendors continue to seek ways to balance revenue growth and margin improvement, but are struggling to increase both ends of that equation, especially with new technologies such as NFV, SDN and cloud threatening to disrupt the traditional sales model.

Source: TBR

Enterprise Software-Defined Networking Reached $1.4 Billion

Enterprise networking is experiencing a significant transformation, similar to the telecom service provider sector. The data center and enterprise software‑defined networking (SDN) market increased by 82 percent in 2015 from the prior year — reaching $1.4 billion, according to IHS.

Source: Digital Lifescapes

How Cloud, SDN and NFV are Transforming Telecom

The Telecom Infrastructure Services (TIS) market in North America will decline from $30.4 billion in 2015 to $27.4 billion in 2021 at a CAGR of -1.7 percent, according to TBR. Telecom network operators will shift their focus to software-mediated networks, specifically orchestration, automation, SDN and NFV.

Source: Digital Lifescapes

Telecom Networking Market Disruption is Now Inevitable

For the past several years, the telecom industry has been moving toward a major network and operational transformation epitomized by software-defined networking (SDN) and network functions virtualization (NFV) with the top goals of automation and service agility.

Source: Digital Lifescapes

Growth of SDN in Telco Data Centers Increased in Q4 2015

Purchases of SDN software for telecom network operators’ data centers increased more than 70% year-on-year to $52 million, and use of SDN in white box, brite box, and hybrid physical underlay networks increased at a similar rate.

Source: ACG Research

Global Enterprise Software-Defined Networking Upside

Large enterprise organizations are in the early stages of SDN trials to reduce network bottlenecks. As the technological and business value of the SDN architecture is established, ongoing user adoption will expand over time.

Source: Digital Lifescapes

Converged Systems Revenue Reached $3.1 Billion in Q415

Worldwide converged systems market increased revenue 8.5% year over year to $3.1 billion during the fourth quarter of 2015 (4Q15). The market generated 1,547 petabytes of new storage capacity shipments during the quarter, which was up 26.9% compared to the same period a year ago.

Source: IDC

How the SDN Market will Grow to Reach $12.5 Billion in 2020

The worldwide software-defined networking (SDN) market — comprising physical network infrastructure, virtualization software, SDN applications, and professional services — will have a compound annual growth rate (CAGR) of 53.9% from 2014 to 2020 and will be worth nearly $12.5 billion in 2020.

Source: IDC

Telecom Service Providers Adopt NFV/SDN to Improve Profitability

AT&T and Verizon are moving away from the public cloud business, due to their inability to gain market share against established competitors such as Amazon Web Services. Instead, operators will focus their 2016 cloud strategies on providing network connectivity and value-added services to solutions offered by leading cloud service providers.

Source: TBR

How Telco NFV Benefits and Use Cases will Drive New Growth

Network Functions Virtualization (NFV) is redefining the way data is distributed by creating highly automated and more efficiently structured networks that deliver next-generation software apps and services with ease and speed.

Source: OpenStack Superuser