Most Tier 1 telecom providers anticipate their organizations will adopt NFV and SDN technologies within two years, their optimism fueled by positive business results from large-scale commercial deployments of business network services from the likes of AT&T and Orange, according to Technology Business Research’s (TBR) 2H16 Telecom Software Mediated Networks (NFV/SDN) Customer Adoption Study.
By building their own solutions, partnering with open-source communities and jointly developing with their suppliers, providers are moving the industry forward. But broad agreement is required to address conflicting approaches to orchestration, among other issues, TBR says.
While select providers in each geographic segment are progressing, those in the Americas are most optimistic, largely due to adoption activities in the United States, says TBR Telecom Executive Analyst Michael Sullivan- Trainor.
“Tier 1 service providers are proving the business case for NFV/SDN by delivering cost savings and incremental revenue through early deployments,” Sullivan- Trainor said.
Meanwhile, TBR’s research shows 5G and Internet of Things (IoT) are driving NFV and SDN adoption at equal levels, with digital service creation the third-highest driver. TBR believes these technologies are driving adoption of network virtualization technologies because they require the programmability, flexibility and automation afforded by software-mediated solutions.
TBR’s report examines how operators are planning, preparing and executing to succeed in the NFV and SDN telecom market. TBR surveyed 18 of the top Tier 1 telecom service providers worldwide to gain insight into adoption plans for both technologies.