IHS Markit: Three-quarters of telecom carriers to deploy SDN this year

Seventy-five percent of telecom carriers have already deployed or intend to deploy software defined networking (SDN) technology in 2016, according to a new survey conducted by research company IHS Markit.

The report indicates that all service providers intend to deploy SDN in the future and that most of them are already moving from SDN proof-of-concept (PoC) evaluations to commercial deployments.

“The figures are in line with what we have witnessed on the ground,” said Ariel Efrati, Telco Systems CEO. “As we predicted at the end of last year, 2016 is a transition year in which carriers are moving from PoCs to first live commercial SDN deployment.”

The top drivers for SDN investments and deployments are simplification and automation of network and service provisioning, as well as service automation.


According to Michael Howard, senior research director at IHS Markit, service providers invest in SDN as part of a larger move to automate their networks and transform their networks, internal processes, operations and service offerings.

“SDN is widely believed to fundamentally change telecom network architecture and deliver benefits in service agility, time to revenue, operational efficiency and capex savings,” said Howard.

“Momentum is strong, but it will be many years before larger parts of networks or entire networks are controlled by SDN, although a few operators are leading the way, including AT&T, Level 3, Colt, Orange Business Systems, SK Telecom and Telefónica, among others,” he added.

The report is based on interviews with purchase-decision makers at 28 international service providers. Most respondents stated that they had identified the lack of carrier-grade products and integration of virtual networking into their existing physical networks as the top barriers to deployment. At the same time, the carriers rated virtual customer premises equipment (vCPE) managed services as the top SDN and network functions virtualization (NFV) application for producing new sources of revenue.

Additional resources

To download the IHS Markit survey click here

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


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