Analysys Mason: CSPs should take advantage of the shift to virtual networks

A new forecasting report on Network Management and Orchestration Systems by research firm Analysys Mason highlighted three anticipated key industry trends for communications service providers (CSPs) through 2020.  The report was authored by Gorkem Yigit, Dana Cooperson and Caroline Chappell.

According to the report, the three trends for the next three years are:

  • Consumer wireless NMS revenue will decline because major LTE deployments and upgrades are now complete in most markets. The overall wireless market will stabilize and return to growth with cloud-RAN and IoT/M2M (business wireless NMS) investments after 2018.
  • CSPs’ investment focus on vNGN-NMS NOM will increase as they orchestrate and automate their NFV/SDN virtualized networks.
  • Video and data centre connectivity traffic will generate sustained growth in residential and business fixed NMS sub-segments.


As the graph from the report below indicates, spending on traditional network management systems (NMS) will continue to be flat at $7.5 billion through 2020.  By contrast, next-generation network management and orchestration systems, are predicted to grow 47 percent (2016–2020) to $3.8 billion to support network function virtualization (NFV) and software-defined networking (SDN).


Based on these forecasted trends, Analysys Mason makes three recommendations for Communications Service Providers (CSPs) for how to take advantage of the shift from physical to virtual networks.

  • CSPs will need to ensure that their current network management systems are upgraded in order to work with network orchestrators to support management of hybrid physical–virtual networks.
  • CSPs should not go too far down the network virtualization path without implementing a network orchestration strategy.
  • CSPs should, for now, maintain a dual focus on reaping rapid returns and moving towards a strategic platform.


Telco Systems has already developed a solution that enables CSPs to take advantage of the shift from physical to virtual networks – EdgeGenie Orchestrator, a CE 2.0 & SDN/NFV Management System.

EdgeGenie Orchestrator Carrier Ethernet 2.0, SDN & NFV service management system offers a modular and complete solution for the full life cycle of network deployment, from planning to managing, monitoring and maintaining Ethernet services. Service providers can modularly future-proof their networks as they transition from CE 2.0 to SDN and distributed NFV (D-NFV) technologies.

EdgeGenie Orchestrator’s modules include a Carrier Ethernet and multiprotocol label switching (MPLS) end-to-end service management system with an SDN controller (TelcoController) module that manages OpenFlow switches, and an NFV Orchestrator (TelcoOrchestrator) module that directs distributed NFV deployments, including TelcoApps VM initiation, configuration and maintenance, service attachment and chaining, and virtual network functions (VNF) resiliency.

Additional resources

To learn more, download the EdgeGenie Orchestrator brochure

For more information or a demonstration of Telco Systems SDN & NFV solutions, click here


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