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SDN, NFV To Drive Big Bucks: Infonetics

Software-defined networking (SDN) and network functions virtualization (NFV) – technologies that are playing an important role in the evolution of telco networks and rapidly becoming a point of emphasis for cable, is going to be a huge business, according to a new forecast from Infonetics Research.

The carrier market for SDN and NFV will reach $11 billion by 2018, Infonetics said in a report that takes a deep dive on SDN router and switch hardware and software and NFV-facing elements, such as policy, deep packet inspection, and security.

"For three years, the telecom industry has been abuzz over SDN and NFV, with anticipation and hard work developing the vision, goals, architectures, use cases, proof-of-concept projects, field trials, and even some commercial deployments. We've been gathering data in this early market for nearly two years and are projecting the global service provider SDN and NFV market to reach $11 billion in 2018,"  Michael Howard, Infonetics Research's co-founder and principal analyst for carrier networks, said in a statement.

Infonetics is breaking down spending in the emerging market into new SDN and NFV software, which it expects to comprise 20% of the total SDN and NFV market in 2018, as well as “displaced” revenue (12% by 2018) that comes from purchases other than traditional network hardware such as routers and firewalls. The third revenue segment – predicted to be the largest (68% by 2018) will come from “newly identified segments of existing markets,” which mostly includes virtualized network functions (VNFs), as well as ports on routers, switches, and optical gear that have become SDN-capable.