Large-scale adoption of NFV and SDN by telecom providers within two years

Large-scale commercial deployment of software-defined networking (SDN) and network functions virtualization (NFV) by operators is expected over the next two years, according to research agency TBR.

The report, entitled Telecom Operators NFV Investment Plans, forecasts an increase in global NFV investment plans by telecom operators, based on the successful business network services rolled out by AT&T and Orange.

“Tier 1 service providers are proving the business case for NFV / SDN by delivering cost savings and incremental revenue through early deployments,” TBR Telecom Executive Analyst Michael Sullivan Trainor said.

The three main factors leading this trend are operators are building their own solutions, partnering with open source communities and developing solutions together with their suppliers.

According to TBR, NFV and SDN adoption is being driven by 5G and IoT because the both require programmability, flexibility and automation, inherent to a software-based solution. These facts lead TBR analysts to predict that the NFV and SDN professional services market, currently estimated at $800 million in 2016, to surge to $6.1 billion by 2018.

NFV Growth

The report concludes with an overview of some recent deployments by large operators, and indicates that there are some important factors to consider when adopting NFV and SDN solutions to make the integration run smoother, such as:

  • Selection of a prime system integrator with NFV and hybrid network expertise
  • Strong  NFV analytical and deployment tools
  • Experience in proven NFV deployments
  • Multi Vendor and open ecosystem expertise


Additional resources

To learn more about Telco System’s NFV and SDN solutions, click here


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