The communication service provider market space is experiencing a shift towards the software based network infrastructure from proprietary hardware based infrastructure. High intensity of completion from over the top service providers who also promise faster deployment of cost effective solutions and an increased need for customization and flexibility, has led to this shift which is driven more by necessity than by choice. Adoption of a software centric infrastructure opens the doors to network virtualization and a host of features, functions and benefits through which communication service providers can overcome the challenges they face.
In the current market scenario the network layer lies between two virtualized layers, in-order to fully utilize the potential of the cloud the middle layer has to be more flexible. With the accelerated move towards cloud based services, Bring Your Own Device (BYOD) and Mobility the need for networks to be more agile and scalable has drastically raised. Both, Telecom operators and Enterprises are under immense pressure to cope up with the advancements in technology on either end of the network.
Shift toward an IT Software Centric Infrastructure has led to the rapid deployment and implementation on virtualized networks. By implementing NFV and SDN based equipment. Enterprise and especially Service Providers can dramatically increase the simplicity and efficiency of the network and at the same time cut down equipment cost. NFV deployments can dramatically reduce a Telecom operator's provision time, which would be beneficial to both the operator and the enterprise.
Communication service providers are shifting from a proprietary communication hardware model to a software centric generic IT model. The two main components of network virtualization currently are SDN and NFV. SDN separates the data and control plane of the network hardware and enables the implementation of commodity hardware. A SDN-based infrastructure can be programmed from a central console, thereby increasing flexibility of the network. NFV replaces the network function of propriety hardware with software. This reduces the complexity of configuring and implementing the network and makes the network more agile.
Market penetration of software based network infrastructure
The spend proportion of software-based network products has been observed to increase in the past couple of years, owing to the increase in migration of network infrastructure from hardware platforms to software-based solutions.
Network Function Virtualization
Network function Virtualization is primarily targeted at service providers, unlike SDN which is aimed predominantly at datacenters. NFV has enabled service providers to implement network through software running on a typical x86 server.
Market Penetration 2014 USD 200 45-50% million 2019 USD 1.3 billion Note: Table made from bar graph. Contributors to market penetration of software based infrastructure:
Quicker and Low Cost Deployment: Through Network...