Accenture: Adoption of SDN and NFV leads to 25% decline in costs

Communication service providers (CSPs) that have adopted Network function virtualization (NFV) and software-defined networks (SDN) technologies have already witnessed cost reductions of some 25 percent, according to a new survey published by global professional services company Accenture.

The report cited CSPs as seeing additional benefits to virtualization, including speed, reduced cost of ownership and increased security.

The survey indicates that 95% of CSPs believe that network services will be virtualized. According to Accenture analysts who surveyed 363 small, medium and large enterprises, the market is ripe for network virtualization.

Eighty-nine percent of respondents believe they will evolve to an “as a service” model within the next three years and 33% are already using NFV and SDN technologies.

Accenture survey: Serving the Enterprise Network Market

The survey indicates that enterprise respondents expect network virtualization to lead to cost reductions and 72% said cost to maintain the network was the key criterion influencing their decision.

The report further showed that businesses plan to invest between 20% and 30% percent of their IT budget in network virtualization services in the next three years. Two-thirds of them plan to adopt network virtualization for all network services, with 12% planning a “big bang” migration.

“Telco Systems has identified early the benefits of SDN and NFV for CSPs and we have accordingly managed to develop a broad SDN solutions portfolio,” said Raanan Tzemach, Vice President of Product and Marketing at Telco Systems.

“As the market evolves, there is a need for network interface devices that have multi-functions and can be upgraded to SDN easily without replacing existing hardware,” Tzemach added. “Keeping this in mind, we have developed our product line to support SDN by remote software download only.”

Additional resources

To download the Accenture survey “Serving the Enterprise Network Market: The Transformation Requirements Communications Service Providers Face,” click here

To learn more about Telco Systems’ SDN and NFV solution click here


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