A majority of Tier 1 telecom operators are expecting to adopt NFV and SDN technologies within two years, according Telecom Business Research (TBR).
This optimism is fueled by positive business results from large-scale commercial deployments of business network services from the likes of AT&T and Orange, says TBR’s 2H16 Telecom Software Mediated Networks (NFV/SDN) Customer Adoption Study.
“Tier 1 service providers are proving the business case for NFV/SDN by delivering cost savings and incremental revenue through early deployments,” says TBR telecom executive analyst Michael Sullivan-Trainor.
By building their own solutions, partnering with open-source communities and jointly developing with their suppliers, telecoms operators are moving the industry forward.
While select telecoms operators in each geographic segment are progressing, those in the Americas are most optimistic, largely due to adoption activities in the United States.
In Asia Pacific, for example, 20% of telecoms operators which participated in the survey said they will adopt NFV technology within this year, while the majority 80% plan to adopt within one or two years.
Business case aside, TBR study also shows 5G and Internet of Things (IoT) driving NFV and SDN adoption at equal levels, with digital service creation the third-largest driver.
These technologies, TBR says, are driving NFV and SDN adoption because they require the programmability, flexibility and automation afforded by software-mediated solutions.
Despite that, broad agreement is required to address conflicting approaches to orchestration, among other issues, Sullivan-Trainor adds.
TBR surveyed 18 of the top Tier 1 telecom service providers worldwide to gain insight into their NFV and SDN adoption plans. The study includes insight into service provider strategy, as well as their perception of supplier positioning and key benefits and obstacles.
Earlier, TBR predicted that global NFV and SDN market will at a 116% CAGR through 2021 to nearly $158 billion, with NFV- and SDN-related spend volume forecast to ramp up in 2017, as uses and cost benefits of using the technologies are becoming more apparent.