The SDN, NFV & Network Virtualization Bible: 2014 - 2020

  • October 2013
  • -
  • SNS Telecom
  • -
  • 263 pages

While the benefits of Software Defined Networking (SDN) and network virtualization are well known in the enterprise IT and data center world, both technologies also bring a hosts of benefits to the telecommunications service provider/carrier community.

Not only can SDN and network virtualization help address the explosive capacity demand of mobile traffic, but they can also reduce the CapEx and OpEx burden faced by service providers to handle this demand by diminishing reliance on expensive proprietary hardware platforms.

SDN and network virtualization solutions have been widely deployed in data center and enterprise environments, and many service provider deployments are already underway.

Network Functions Virtualization (NFV) is service provider led initiative aimed at virtualizing network components in a service provider network. While NFV is still a developing technology with its first set of specifications published in October 2013, many vendors have already developed commercial-grade solutions that align well with the NFV initiative.

Driven by the thriving ecosystem, SNS Research estimates that the SDN, NFV and network virtualization market will account for nearly $4 Billion in 2014 alone. Despite barriers relating to standardization and co-existence with legacy networks, SNS Research estimates further growth at a CAGR of nearly 60% over the next 6 years.

This report presents an in-depth assessment of the global SDN, NFV and network virtualization market. In addition to covering underlying technology, key market drivers, challenges, future roadmap, value chain analysis, use cases, deployment case studies, expert interviews, company profiles, product strategies and strategic recommendations, the report also presents comprehensive forecasts for the market from 2013 till 2020. Historical revenue figures for 2010 – 2012 are also presented. The forecasts and historical revenue figures are individually segmented for 3 individual submarkets, 2 user base categories, 7 use case categories, 6 geographical regions and 34 countries.

The report comes with an associated Excel datasheet covering quantitative data from all figures presented within the report.

Key Findings:

The report has the following key findings:

- Driven by the thriving ecosystem, SNS Research estimates that the SDN, NFV and network virtualization market will account for nearly $4 Billion in 2014 alone. SNS Research estimates further growth at a CAGR of nearly 60% over the next 6 years
- Although network virtualization in the enterprise IT and data center domain has received significant attention in the past years, service provider network virtualization is still at a nascent stage
- SDN and NFV empower a multitude of network functions to be implemented cost effectively in software, ranging from standard mobile IP Multimedia System (IMS) services to features such as Deep Packet Inspection (DPI)
- By 2017 we expect to see significant price and gross margin erosion for traditional hardware-based network switching equipment driven by alternative software based solutions
- By 2020 SNS Research estimates that SDN and NFV can enable service providers (both wireline and wireless) to save up to $32 Billion in annual CapEx investments

Topics Covered:

The report covers the following topics:
- The scope and implementation of SDN, NFV and network virtualization across the globe
- SDN, NFV and network virtualization technology
- Market drivers and key benefits of SDN, NFV and network virtualization
- Challenges and inhibitors to the ecosystem
- Standardization and regulatory initiatives
- Use cases and application case studies of SDN and NFV
- SDN and NFV deployment case studies
- SDN and NFV induced service provider CapEx savings
- Value chain analysis of the ecosystem and the recognition of key players in each segment of the value chain
- Industry roadmap from 2014 till 2020
- Key trends in the ecosystem; SDN and NFV’s impact on the network infrastructure value chain, the stance of incumbent vendors towards SDN and NFV, impact on the proprietary hardware market and co-existence with legacy networks
- Exclusive interview transcripts of 17 players in the ecosystem; Alvarion, Aricent, Arista Networks, Broadcomm, Connectem, ConteXtream, Extreme Networks, GENBAND, Mavenir, Netronome, Open Networking Foundation (ONF), Openwave Mobility, Pica8, Plexxi, Radisys, Spirent Communications and Tellabs
- Profiles and strategies of 122 key players in the ecosystem
- Strategic recommendations for silicon & server OEMs, network & mobile Infrastructure vendors, IT giants, pure-play SDN/NFV specialists, enterprises, data center operators and service providers
- Historical revenue figures and forecasts till 2020

Historical Revenue & Forecast Segmentation:

Market forecasts and historical revenue figures are provided for each of the following submarkets, user base and use case categories:

- Submarkets
SDN Software & Hardware
Non-NFV Network Virtualization Software
NFV Software

- SDN Submarkets
SDN Controller Hardware Appliances
SDN Controller Software

- User Base Categories
Service Providers
Data Centers & Enterprises

- Service Provider Use Case Categories
Radio Access Networks
Mobile Core, EPC, IMS & Services
OSS/BSS
Data Center
Mobile Backhaul
Wireline Fixed Access Networks
CPE/Home Environment

The following regional and country markets are also covered:

- Regional Markets
Asia Pacific
Eastern Europe
Latin & Central America
Middle East & Africa
North America
Western Europe

- Country Markets
Argentina, Australia, Brazil, Canada, China, Czech Republic, Denmark, Finland, France, Germany, India, Indonesia, Israel, Italy, Japan, Malaysia, Mexico, Norway, Pakistan, Philippines, Poland, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Taiwan, Thailand, UAE, UK and USA

Additional forecasts are provided for:

- SDN and NFV Induced Service Provider CapEx Savings by Region

Key Questions Answered:

The report provides answers to the following key questions:

- What are the key market drivers and challenges for SDN, NFV and the wider network virtualization ecosystem?
- How can SDN and NFV complement each other?
- What are the key applications and use cases of SDN and NFV?
- How is the SDN, NFV and network virtualization value chain structured and how will it evolve overtime?
- What opportunities do SDN and NFV offer to silicon & server OEMs, network & mobile Infrastructure vendors, IT giants, pure-play SDN/NFV specialists, enterprises, data center operators and service providers and other players in the value chain?
- What strategies should these players adopt to capitalize on the SDN and NFV opportunity?
- How are SDN and NFV vendors positioning their product offerings?
- How big is the SDN, NFV and network virtualization ecosystem, and how much revenue will it generate in 2020?
- What particular submarkets does the ecosystem constitute?
- What geographical regions, countries and submarkets offer the greatest growth potential for SDN and NFV investments?
- Who are the key players in the SDN and NFV ecosystem and what are their strategies?
- How will SDN and NFV impact the network infrastructure value chain?
- Is there a ring leader in the SDN and NFV ecosystem?
- How long will service providers continue to utilize proprietary hardware platforms?
- How can SDN and NFV help make the Voice over LTE (VoLTE) and Rich Communication Services (RCS) business case work?
- How can software-defined Deep Packet Inspection (DPI) complement SDN functionality?
- What level of CapEx savings can SDN and NFV facilitate for service providers in each region?

Table Of Contents

List of Figures
1 Chapter 1: Introduction
1,1 Executive Summary
1,2 Topics Covered
1,3 Historical Revenue and Forecast Segmentation
1,4 Key Questions Answered
1,5 Key Findings
1,6 Methodology
1,7 Target Audience
1,8 Companies and Organizations Mentioned
2 Chapter 2: An Overview of SDN, NFV and Network Virtualization
2,1 What is Network Virtualization?
2,2 What is Software Defined Networking (SDN)?
2,3 SDN Protocols
2.3.1 OpenFlow
2.3.2 Border Gateway Protocol - Traffic engineering (BGP-TE)
2.3.3 Path Computation Element Protocol (PCEP)
2.3.4 Interface to the Routing System (I2RS)
2.3.5 Virtual Extensible LAN (VxLAN)
2.3.6 Application Layer Traffic Optimization (ALTO)
2.3.7 IETF Software Driven Networks
2,4 SDN Implementation Approaches
2.4.1 Network Virtualization Approach
2.4.2 Evolutionary Approach
2.4.3 The “Central Control” Approach
2,5 What is Network Functions Virtualization (NFV)?
2,6 NFV Enabling Technologies
2.6.1 Cloud Computing and Network Virtualization
2.6.2 Open Management and Control Protocols
2.6.3 Industry Standard High-Volume Servers
2,7 How SDN and NFV Differ from Each Other
2.7.1 Similarities and Differences
2.7.2 Can Both Technologies Complement Each Other?
2.7.3 How Are Vendors Positioning their Solutions?
2,8 Market Drivers
2.8.1 Leveraging Generic Low-cost Hardware
2.8.2 Multi-tenancy on Same Hardware
2.8.3 Reduced Power Consumption
2.8.4 Faster Time to Market (TTM)
2.8.5 Improved Operational Efficiency and Performance
2.8.6 Centralized Provisioning and Network Control
2.8.7 Ability to Launch New Services and Virtual Networks Quickly
2.8.8 Dynamic Scaling of Services
2.8.9 Opening the Door to Multi-vendor Interoperability
2.8.10 CapEx and OpEx Reduction
2.8.11 Fast Troubleshooting and Improved Diagnostics
2.8.12 Vendor Support
2,9 Market Barriers
2.9.1 Lack of Standardization and Technology Maturity
2.9.2 Uncertain Cost-Benefits Tradeoffs
2.9.3 NFV May Slow/Delay Traffic
2.9.4 Will Multi-vendor Interoperability Really Work?
2.9.5 Co-Existence with Legacy Networks: Integration Challenges
3 Chapter 3: SDN/NFV Use Case Scenarios and Deployment Case Studies
3,1 Enterprise, Data Center and Generic Use Cases
3.1.1 Network Virtualization
3.1.2 Network Virtualization Case Study: Scalable Data Centers
3.1.3 Tap Aggregation
3.1.4 Dynamic WAN Re-Routing
3.1.5 Network Exchange: Interconnecting Physical Networks
3.1.6 Improved Traffic Engineering
3.1.7 Converged Storage
3,2 Service Provider Use Cases
3.2.1 Radio Access Network (RAN) Virtualization
3.2.2 Cloud RAN
3.2.3 Wireline Fixed Access Network Virtualization
3.2.4 Evolved Packet Core (EPC)/Mobile Core Virtualization (Including IMS)
3.2.5 Mobile Backhaul Virtualization
3.2.6 CPE/Home Network Environment Virtualization
3.2.7 Service Chaining
3.2.8 SDN/NFV Infrastructure as a Service (IaaS)
3.2.9 Virtualization of Network Functions (VNF)
3.2.10 VNF Case Study: Deep Packet Inspection (DPI)
3.2.11 Virtual Network Function as a Service (VNFaaS)
3.2.12 Virtual Network Platform as a Service (VNPaaS)
3.2.13 Virtualization of CDNs
3.2.14 Bandwidth on Demand
3.2.15 Bandwidth on Demand Case Study: QoS Management for Video
3.2.16 Packet-Optical Integration
3,3 Service Provider Deployment Case Studies
3.3.1 ATandT
3.3.2 BT
3.3.3 China Mobile
3.3.4 Deutsche Telekom
3.3.5 KDDI
3.3.6 NTT Communications
3.3.7 Portugal Telecom (PT) /Oi
3.3.8 SK Telecom
3.3.9 SoftBank
3.3.10 Verizon
3,4 Enterprise and Data Center Deployment Case Studies
3.4.1 Equinix
3.4.2 Fidelity Investments
3.4.3 Google
3.4.4 Kanazawa University Hospital
3.4.5 Nippon Express
4 Chapter 4: Industry Roadmap and Value Chain
4,1 The SDN, NFV and Network Virtualization Value Chain
4.1.1 Silicon and Server OEMs
4.1.2 Pure-play SDN/NFV Specialists
4.1.3 Network Infrastructure Vendors
4.1.4 IT Industry Giants
4.1.5 Mobile Infrastructure Vendors
4.1.6 BSS/OSS and Software Vendors
4.1.7 Enterprises
4.1.8 Service Providers
4.1.9 Data Center Operators
4,2 The SDN, NFV and Network Virtualization Industry Roadmap: 2014 - 2020
4.2.1 Enterprise and Data Center SDN Rollouts: 2013 - 2014
4.2.2 NFV Trials and Vendor Consolidation: 2015 - 2017
4.2.3 Large Scale Proliferation of NFV and SDN in Service Provider Networks: 2018 - 2020
5 Chapter 5: Standardization Bodies and Alliances
5,1 Open Networking Foundation (ONF)
5,2 European Telecommunications Standards Institute (ETSI)
5,3 Cloud NFV
5,4 Internet Engineering Task Force (IETF)
5,5 Internet Research Task Force (IRTF)
5,6 ITU (International Telecommunications Union)
5,7 OpenDaylight (Linux Foundation)
5,8 OpenStack Foundation
5,9 Open Networking Research Center (ONRC) and ON.Lab
5,1 OpenContrail (Juniper Led)
5,11 CloudBand Ecosystem Program (Alcatel-Lucent Led)
5,12 Open Virtualization Alliance (OVA)
5,13 Object Management Group (OMG)
5,14 FlowForwarding
6 Chapter 6: Expert Opinion
6,1 Alvarion
6,2 Aricent
6,3 Arista Networks
6,4 Broadcom
6,5 Connectem
6,6 ConteXtream
6,7 Extreme Networks
6,8 GENBAND
6,9 Mavenir
6,1 Netronome
6,11 Open Networking Foundation (ONF)
6,12 Openwave Mobility
6,13 Pica8
6,14 Plexxi
6,15 Radisys
6,16 Spirent Communications
6,17 Tellabs
7 Chapter 7: Company Profiles
7,1 6WIND
7,2 A10 Networks
7,3 Accedian Networks
7,4 Active Broadband Networks
7,5 ADARA Networks
7,6 ADVA Optical Networking
7,7 Alcatel-Lucent/Nuage Networks
7,8 Amdocs
7,9 Alvarion
7,1 Argela (Turk Telekom Subsidiary)
7,11 Aricent
7,12 Arista Networks
7,13 Big Switch Networks
7,14 Broadcom
7,15 Brocade/Vyatta
7,16 Calsoft Labs/ALTEN Group
7,17 Centec Networks
7,18 Ceragon Networks
7,19 Check Point Software Technologies
7,2 Ciena
7,21 Cisco
7,22 Citrix
7,23 CohesiveFT
7,24 Colt
7,25 Connectem
7,26 ConteXtream
7,27 Coriant
7,28 Corsa Technology
7,29 Cyan
7,3 Dell/Force10
7,31 Dorado Software
7,32 Embrane
7,33 EnterpriseWeb
7,34 Ericsson
7,35 Extreme Networks
7,36 F5 Networks / LineRate Systems
7,37 Fortinet
7,38 Freescale
7,39 Fujitsu
7,4 GENBAND
7,41 Gigamon
7,42 GigaSpaces Technologies
7,43 GoGrid
7,44 Hewlett-Packard (HP)
7,45 Hitachi
7,46 Huawei
7,47 IBM
7,48 Infinera
7,49 Infoblox
7,5 Inocybe Technologies
7,51 Intel
7,52 Intune Networks
7,53 IP Infusion
7,54 Ixia
7,55 Juniper Networks
7,56 KEMP Technologies
7,57 Lancope
7,58 LSI
7,59 Luxoft/IBS Group
7,6 Lyatiss
7,61 Marvell
7,62 Mavenir
7,63 MediaTek
7,64 Mellanox Technologies
7,65 Metaswitch Networks
7,66 Microsoft
7,67 Midokura
7,68 NCL Communication (NCLC)
7,69 NEC
7,7 NetCracker Technology Corp (Part of NEC)
7,71 Netgear
7,72 Netronome
7,73 NetScout Systems
7,74 Netsocket
7,75 NetYCE
7,76 Nokia Solutions and Networks (NSN)
7,77 NoviFlow
7,78 Openet
7,79 Openwave Mobility
7,8 Optelian
7,81 Oracle/Tekelec
7,82 Orchestral Networks
7,83 Overture Networks
7,84 Pantheon
7,85 Pertino
7,86 Pica8
7,87 Plexxi
7,88 PLUMgrid
7,89 Pluribus Networks
7,9 Polatis
7,91 Procera Networks
7,92 Qosmos
7,93 Qualcomm
7,94 Rackspace
7,95 Radisys
7,96 Radware
7,97 Red Bend Software
7,98 Red Hat
7,99 RightScale
7,1 Riverbed Technology
7,101 Saisei Networks
7,102 Skyfire/Opera Software
7,103 Sonus Networks
7,104 Spirent Communications
7,105 StackIQ
7,106 Tail-f Systems
7,107 Tellabs
7,108 Texas Instruments (TI)
7,109 Tieto
7,11 Tilera
7,111 TorreyPoint
7,112 Transmode
7,113 UBIqube Solutions
7,114 vArmour Networks
7,115 Vello Systems
7,116 Versa Networks
7,117 Virtela
7,118 VMware/Nicira (EMC Subsidiary)
7,119 VSS Monitoring
7,12 Xpliant
7,121 Zhone Technologies
7,122 ZTE Corporation
7,123 Others
8 Chapter 8: Market Analysis and Forecasts
8,1 Global Outlook of the SDN, NFV and Network Virtualization Market Revenue: 2010 - 2020
8,2 Submarket Segmentation
8,3 SDN Submarket Revenue: 2010 - 2020
8.3.1 SDN Controller Hardware Appliances
8.3.2 SDN Controller Software
8,4 Non-NFV Network Virtualization Software Submarket Revenue: 2010 - 2020
8,5 NFV Software Submarket Revenue: 2010 - 2020
8,6 User Base Segmentation
8,7 Service Provider SDN and NFV Revenue: 2010 - 2020
8.7.1 Service Provider SDN
8.7.2 Service Provider NFV
8,8 Data Center and Enterprise SDN and Network Virtualization Revenue: 2010 - 2020
8.8.1 Data Center and Enterprise SDN
8.8.2 Data Center and Enterprise Network Virtualization
8,9 Functional Area Segmentation for Service Provider Deployments
8.9.1 Radio Access Networks
8.9.2 Mobile Core, EPC and IMS Services
8.9.3 OSS/BSS
8.9.4 Service Provider Data Center
8.9.5 Mobile Backhaul
8.9.6 Wireline Fixed Access Networks
8.9.7 CPE/Home Environment
8,1 Regional Outlook
8,11 Asia Pacific SDN, NFV and Network Virtualization Revenue: 2010 - 2020
8.11.1 Country Level Segmentation
8.11.2 Australia
8.11.3 China
8.11.4 India
8.11.5 Japan
8.11.6 South Korea
8.11.7 Pakistan
8.11.8 Thailand
8.11.9 Indonesia
8.11.10 Malaysia
8.11.11 Taiwan
8.11.12 Philippines
8.11.13 Singapore
8.11.14 Rest of Asia Pacific
8,12 Eastern Europe SDN, NFV and Network Virtualization Revenue: 2010 - 2020
8.12.1 Country Level Segmentation
8.12.2 Czech Republic
8.12.3 Poland
8.12.4 Russia
8.12.5 Rest of Eastern Europe
8,13 Latin and Central America SDN, NFV and Network Virtualization Revenue: 2010 - 2020
8.13.1 Country Level Segmentation
8.13.2 Argentina
8.13.3 Brazil
8.13.4 Mexico
8.13.5 Rest of Latin and Central America
8,14 Middle East and Africa SDN, NFV and Network Virtualization Revenue: 2010 - 2020
8.14.1 Country Level Segmentation
8.14.2 South Africa
8.14.3 UAE
8.14.4 Qatar
8.14.5 Saudi Arabia
8.14.6 Israel
8.14.7 Rest of the Middle East and Africa
8,15 North America SDN, NFV and Network Virtualization Revenue: 2010 - 2020
8.15.1 Country Level Segmentation
8.15.2 USA
8.15.3 Canada
8,16 Western Europe SDN, NFV and Network Virtualization Revenue: 2010 - 2020
8.16.1 Country Level Segmentation
8.16.2 Denmark
8.16.3 Finland
8.16.4 France
8.16.5 Germany
8.16.6 Italy
8.16.7 Spain
8.16.8 Sweden
8.16.9 Norway
8.16.10 UK
8.16.11 Rest of Western Europe
9 Chapter 9: Conclusion and Strategic Recommendations
9,1 Will SDN and NFV Disrupt the Network Infrastructure Value Chain?
9,2 Is There a Ring Leader in the SDN and NFV Ecosystem?
9,3 SDN and NFV: Building the Mobile Cloud
9,4 Buyers Will Maintain Focus on Business Agility and CapEx Reduction
9,5 Avoiding the Proprietary Trap
9,6 Will Service Providers Continue to Utilize Proprietary Hardware Platforms?
9,7 Making the VoLTE and RCS Business Case Work
9,8 How Much CapEx Can Service Providers Save with SDN and NFV Investments?
9,9 Strategic Recommendations
9.9.1 Recommendations for Silicon and Server OEMs
9.9.2 Recommendations for Network and Mobile Infrastructure Vendors and IT Giants
9.9.3 Recommendations for Pure-play SDN/NFV Specialists
9.9.4 Recommendations for Enterprises and Data Center Operators
9.9.5 Recommendations for Service Providers

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