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  4. > SDN and NFV at a crossroads: vendors innovating and positioning for the future of CSPs’ network virtualisation

Communications service providers (CSPs are increasingly exploring software-controlled networking (SCN, and established vendors must innovate to stay relevant or risk becoming obsolete. This report specifically explores the vendor landscape in software-defined networking (SDN, network function virtualisation (NFV and cloud computing, with analysis of the business environment and a technology forecast for this rapidly changing technology space.

The boundaries between cloud computing, NFV and SDN will continue to blur as virtualisation overcomes traditional hardware barriers

Cloud computing and NFV are similar, but essentially distinct.
• Cloud computing is the virtualisation of commodity IT hardware and applications/software, which can run at least 99% availability level. It is acceptable for non-real-time telecoms software (OSS, BSS) on x86 servers, but is not yet proven for telecoms network functions.
• NFV is the virtualisation of telecoms-specific network functions into applications that will run at least 99.999% availability on suitable carrier-grade hardware and software.

Telecoms software systems that provide network functions can easily reside in a private cloud computing architecture.

The SDN roadmap needs to navigate and mature in the data centre before it can reach CSPs’ networks (CSP SDN). NFV and SDN overlap in the core/aggregation layer of CSPs’ network.

CSP SDN is still largely in R&D and remains an open opportunity for both telecoms and non-telecoms vendors.

Trials have so far clearly separated SDN/OpenFlow from CSP SDN – but this could change as R&D continues and SDN vendors provide solutions for both data centres and CSPs as part of their strategy.

CSPs have more-extensive network and business responsibilities than DCPs, and the distribution and access layers are the most costly

Significant differences in costs and responsibilities separate CSPs and DCPs. DCPs’ total costs are less than 10% of CSPs’ for delivering and operating services and supporting customers, because DCPs run ‘over the top’ of CSPs’ expansive transport and access networks to reach end users.

DCPs’ spend is concentrated on their core (data centre) networks, but this is mainly commodity IT and networking hardware and software. CSPs’ core networks use carrier- grade hardware and software, which is on average ten times the cost of commodity IT, to meet the demand of delivering their own services and DCPs’ services to end users.

Very few DCPs physically network their data centres and own the costs and operations. However, in most cases CSPs have their own transport networks between data centres.

CSPs own almost all of the access layer, although in a few cases DCPs fund Wi-Fi and fibre access (namely Google). CSPs worldwide spent about 77% of their capex (USD267 billion) in 2012 on network hardware, software, roll-out, professional services and associated network infrastructure.

CSPs spend more on user support via call centres, because of stronger regulation in telecoms. DCPs mainly spend on supporting enterprise customers, with minimal effort.

Table Of Contents

SDN and NFV at a crossroads: vendors innovating and positioning for the future of CSPs’ network virtualisation
Table of contents

5.Executive summary
6.Cloud computing, NFV and SDN disruption is more evident in the SCN vendor landscape than in the implemented technologies in CSPs

7.Business environment and fundamental differences between CSPs and DCPs
8.The boundaries between cloud computing, NFV and SDN will continue to blur as virtualisation overcomes traditional hardware barriers
9.CSPs have more-extensive network and business responsibilities than DCPs, and the distribution and access layers are the most costly
10.CSPs and DCPs need to address virtualisation in different ways because of the variations in their business and operational characteristics

11.SCN reference architecture and value chain
12.Software-controlled networking architectural categories
13.SCN market taxonomy for cloud computing, NFV and SDN market opportunities that we will size in the SCN research programme
14.The SCN market is still evolving, but we developed our SCN reference architecture based on existing architecture, because migration is certain
15.Software and services will be the main focus, even for hardware vendors, because they provide higher revenue margins than hardware and devices

16.Market definitions
17.Definitions of SCN market and revenue types
18.Definitions of the SCN market's layered sub-segments [1]
19.Definitions of the SCN market's layered sub-segments [2]

20.SCN technology roadmap forecast
21.Both CSPs and vendors are contributing to the rapid changes in the developments in the NFV and SDN landscape
22.End-to-end IP simplification initially presents opportunities for NFV in the core, and later for CSP SDN in the transport and access networks
23.We forecast the following inaugural virtualisation events in CSPs during the next 7 years, which may propel SCN progress
24.Our roadmap forecasts that NFV will reach maturity much faster than CSP SDN, which is encouraging CSPs to invest in the technology
25.Established telecoms vendors will be relevant to CSPs as they migrate to SCN technologies, but vendors need to stay relevant with SCN solutions
26.NFV and SDN have led to a vendor boom that will consolidate during the next two decades as the technologies mature

27.Recommendations for CSPs and vendors
28.Recommendations for CSPs
29.Recommendations for vendors

30.Vendor profiles
31.New start-ups are emerging, and the role of established vendors is changing to adopt to the network evolution that NFV and SDN will bring
32.ADARA Networks
33.Alcatel-Lucent
34.Big Switch Networks
35.Brocade Communications Systems (Vyatta)
36.Ciena
37.Cisco Systems
38.Citrix Systems
39.ConteXtream
40.Cyan
41.Embrane
42.Ericsson
43.F5 Networks
44.Hewlett-Packard (HP
45.Huawei Technologies
46.IBM
47.Intel
48.Intune Networks
49.Juniper Networks
50.NEC
51.Nokia Siemens Networks (NSN
52.NoviFlow
53.Oracle
54.Palo Alto Networks
55.PLUMgrid
56.Red Hat
57.Tail-f Systems
58.VMware (and Nicira Networks
59.Other notable SCN vendors [1]
60.Other notable SCN vendors [2]
61.Other notable SCN vendors [3]

62.About the authors and Analysys Mason
63.About the authors
64.About Analysys Mason
65.Research from Analysys Mason
66.Consulting from Analysys Mason





List of Figures



Figure 1: ICT convergence in CSPs' networks from cloud computing, NFV and SDN technologies

Figure 2: Comparison of CSPs' and DCPs' scope of operations, support and investment/spend responsibility to reach their consumers

Figure 3: Software-controlled networking architectural categories

Figure 4: SCN market opportunity segments in cloud, NFV and SDN

Figure 5: SCN vendor value chain in cloud, NFV and SDN

Figure 6: SCN market definitions

Figure 7: SCN market revenue type definitions

Figure 8: Definitions of SCN market sub-segments by architectural layers

Figure 9: Definitions of SCN market sub-segments by cloud/virtual layers

Figure 10: Overview of SCN technologies on an end-to-end CSP multi-service IP network

Figure 11: Forecast of virtualisation events that will drive SCN adoption in the CSP environment, 2013-2020

Figure 12: Forecast of NFV and SDN use cases and functions adopted by CSPs, 2013-2023

Figure 13: Vendor market dynamics as a result of new technology introduction

Figure 14a: Company summary of other notable SCN players
Figure 15:

Figure 14b: Company summary of other notable SCN players

Figure 14c: Company summary of other notable SCN players

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