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10 August 2017
| Natalie Bannerman
Analysts say network transformation is catching on, with growth hitting 71% a year and market leaping from $3.6bn to $54bn.
MarketsandMarkets, an analyst
company based in Pune, India, says the global markets for
software-defined networking (SDN) and network functions
virtualisation (NFV) are set to experience considerable growth
in the next few years, bringing its market value to around $54
The current value of the SDN and NFV markets are around $3.6
billion, says MarketsandMarkets, meaning the predicted growth
will be at a compound annual rate of 71.4%.
Telecommunications services providers are set to be the fastest
growing end-user segment during the forecast period, says the
company. SDN will transform the network into a more open and
programmable framework and NFV will optimise network resources,
ultimately creating the ability to delivery flexibility in
The end result is a reduction in network congestions,
improvement in network user capacity and reduces the costs
associated with hardware needed for network expansions, says
Asia Pacific is expected to have the highest compound annual
growth rate, due to the increasing number of data centre
deployments occurring in the region. It is set to displace
Europe into second place for in terms of revenue
Japan will be the biggest customer in the region in terms of
revenues, says MarketsandMarkets, but China and Korea are doing
the most research in this area.
North America is driving continued advancements in technologies
and business applications, leading the way for adoption of SDN
and NFV in its region.
Included in the report is a competitive landscape analysis,
which is based on product offerings and business strategies, it
includes some of the biggest SDN and NFV vendors such as:
Nokia, Cisco Systems, Ericsson, Huawei, Intel, IBM, Hewlett
Packard, Juniper, NEC, Pica8, Brocade, Ciena, Pluribus Networks
and Big Switch Networks.