NFV market seen growing fivefold thru 2019

Staff writer
SDN Cloud

The global network functions virtualization (NFV) hardware, software and services market is predicted to reach $11.6 billion in 2019 from $2.3 billion in 2015, according to IHS.

“NFV represents operators’ shift from a hardware focus to software focus, and our forecasts show this,” said Michael Howard, senior research director for carrier networks at IHS. “We believe NFV software will comprise over 80% of total NFV revenue in 2019.”

The study also shows that service providers are still early in the long-term, 10- to 15-year transformation to virtualized networks.

Revenue from outsourced services for NFV projects is projected to grow at a 71% CAGR from 2014 to 2019.

Revenue from software-only video content delivery network (CDN) functions for managing and distributing data is forecast to grow 30-fold from 2015 to 2019.

In another report, IHS said that only 8% of global service providers that have IP multimedia subsystem (IMS) core equipment in their networks or will by the end of 2017 are running IMS network elements in a NFV environment today.

“Though only a small number of service providers who took part in our IMS strategies survey are currently running IMS in a virtualized environment, more are on the path by starting to use software running on commercial off-the-shelf hardware as a stepping stone to full NFV,” said Diane Myers, research director for VoIP, UC and IMS at IHS.

The survey also found that 80% of respondents indicated that parts of their IMS elements will be running in an NFV environment by 2017, which IHS believes is somewhat optimistic

Among respondents, 60% to 65% are running residential voice over broadband, SIP trunking or hosted business VoIP over IMS, growing to 88% by 2017.

Telephony application servers are an important element to commercializing an IMS network, with 72% of respondents have already installed voice application servers.

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