Carriers ‘to spend $18bn’ on virtualisation by 2020

02 June 2016 | Alan Burkitt-Gray

Service providers will spend over $18 billion on virtualisation and software-defined technologies by the end of 2020, says a new report.

The report, by SNS Research, says that operators are spending the money because they think network functions virtualisation (NFV) and software-defined networks (SDN) will reduce the total cost of ownership.

“Mobile operators are aggressively jumping on the NFV and SDN bandwagon,” says the report, The NFV, SDN & Wireless Network Infrastructure Market: 2016-2030.

The report analyses the strategies of 652 companies. “Service providers continue to face increasing capex and opex burdens, amid growing requirements for high-speed mobile broadband services,” says the report.

“By eliminating reliance on expensive proprietary hardware platforms, NFV and SDN promise to reduce service provider capex. In addition, both technologies can significantly slash opex due to a reduction in physical space, labour and power consumption.”