The SDN, NFV & Network Virtualization Bible: 2015 – 2020
Opportunities, Challenges, Strategies & Forecasts
Table of Contents
1 Chapter 1: Introduction ...... 20 1.1 Executive Summary ...... 20 1.2 Topics Covered ...... 22 1.3 Forecast Segmentation ...... 23 1.4 Key Questions Answered ...... 25 1.5 Key Findings ...... 27 1.6 Methodology ...... 28 1.7 Target Audience ...... 29 1.8 Companies & Organizations Mentioned ...... 30 2 Chapter 2: An Overview of SDN, NFV & Network Virtualization ...... 36 2.1 What is Network Virtualization? ...... 36 2.2 What is SDN (Software Defined Networking)? ...... 37 2.3 SDN Protocols ...... 37 2.3.1 OpenFlow ...... 38 2.3.2 BGP-TE (Border Gateway Protocol - Traffic Engineering) ...... 38 2.3.3 PCEP (Path Computation Element Protocol) ...... 39 2.3.4 I2RS (Interface to the Routing System) ...... 39 2.3.5 VxLAN (Virtual Extensible LAN) ...... 40 2.3.6 ALTO (Application Layer Traffic Optimization) ...... 40 2.3.7 IETF Software Driven Networks ...... 40 2.4 SDN Implementation Approaches ...... 41 2.4.1 Network Virtualization Approach ...... 41 2.4.2 Evolutionary Approach ...... 41 2.4.3 The “Central Control” Approach ...... 42 2.5 What is NFV (Network Functions Virtualization)? ...... 43 2.6 NFV Enabling Technologies ...... 44 2.6.1 Cloud Computing and Network Virtualization...... 44 2.6.2 Open Management and Control Protocols ...... 44
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2.6.3 Industry Standard High-Volume Servers ...... 44 2.7 NFV Implementation Architecture ...... 45 2.7.1 NFVI (NFV Infrastructure) ...... 45 2.7.1.1 Hardware Resources ...... 45 2.7.1.2 Virtualized Resources ...... 45 2.7.2 VNFs (Virtualized Network Functions)...... 46 2.7.3 NFV-MANO (NFV-Management and Orchestration) ...... 46 2.7.3.1 VIM (Virtualized Infrastructure Manager) ...... 46 2.7.3.2 Orchestrator...... 46 2.7.3.3 VNF Manager ...... 47 2.8 How SDN and NFV Differ from Each Other ...... 48 2.8.1 Similarities and Differences ...... 48 2.8.2 Can Both Technologies Complement Each Other? ...... 49 2.8.3 How Are Vendors Positioning their Solutions?...... 49 2.9 Market Drivers...... 50 2.9.1 Leveraging Generic Low-cost Hardware ...... 50 2.9.2 Multi-tenancy on Same Hardware ...... 50 2.9.3 Reduced Power Consumption ...... 50 2.9.4 Faster TTM (Time to Market) ...... 50 2.9.5 Improved Operational Efficiency & Performance ...... 51 2.9.6 Centralized Provisioning and Network Control ...... 51 2.9.7 Ability to Launch New Services & Virtual Networks Quickly ...... 51 2.9.8 Dynamic Scaling of Services...... 52 2.9.9 Opening the Door to Multi-vendor Interoperability ...... 52 2.9.10 CapEx and OpEx Reduction ...... 52 2.9.11 Fast Troubleshooting and Improved Diagnostics ...... 52 2.9.12 Vendor Support ...... 52 2.10 Market Barriers ...... 53 2.10.1 Lack of Standardization & Technology Maturity ...... 53 2.10.2 Uncertain Cost-Benefits Tradeoffs ...... 53 2.10.3 NFV May Slow/Delay Traffic ...... 53
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The SDN, NFV & Network Virtualization Bible: 2015 – 2020
Opportunities, Challenges, Strategies & Forecasts
2.10.4 Will Multi-vendor Interoperability Really Work? ...... 54 2.10.5 Co-Existence with Legacy Networks: Integration Challenges ...... 54 3 Chapter 3: SDN/NFV Use Case Scenarios ...... 55 3.1 Enterprise, Data Center & Generic Use Cases ...... 55 3.1.1 Network Virtualization ...... 55 3.1.2 Network Virtualization Case Study: Scalable Data Centers ...... 56 3.1.3 Tap Aggregation ...... 56 3.1.4 Dynamic WAN Re-Routing ...... 57 3.1.5 Network Exchange: Interconnecting Physical Networks ...... 57 3.1.6 Improved Traffic Engineering ...... 57 3.1.7 Converged Storage ...... 58 3.2 Service Provider Use Cases ...... 59 3.2.1 RAN (Radio Access Network) Virtualization ...... 59 3.2.2 C-RAN (Cloud RAN) ...... 60 3.2.3 Wireline Fixed Access Network Virtualization ...... 61 3.2.4 EPC (Evolved Packet Core)/Mobile Core Virtualization (Including IMS) ...... 62 3.2.5 Mobile Backhaul Virtualization ...... 64 3.2.6 CPE/Home Network Environment Virtualization ...... 64 3.2.7 Service Chaining ...... 65 3.2.8 SDN/NFV Iaas (Infrastructure as a Service) ...... 66 3.2.9 Other VNFs ...... 67 3.2.10 VNF Case Study: DPI (Deep Packet Inspection) ...... 67 3.2.11 VNFaas (Virtual Network Function as a Service) ...... 67 3.2.12 VNPaaS (Virtual Network Platform as a Service) ...... 68 3.2.13 Virtualization of CDNs ...... 68 3.2.14 Bandwidth on Demand ...... 69 3.2.15 Bandwidth on Demand Case Study: QoS Management for Video ...... 69 3.2.16 Packet-Optical Integration...... 70 4 Chapter 4: SDN/NFV Deployment Case Studies ...... 71 4.1 Service Provider Deployment Case Studies ...... 71
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The SDN, NFV & Network Virtualization Bible: 2015 – 2020
Opportunities, Challenges, Strategies & Forecasts
4.1.1 AT&T ...... 71 4.1.2 BT ...... 73 4.1.3 China Mobile ...... 74 4.1.4 DT (Deutsche Telekom) ...... 75 4.1.5 KDDI ...... 77 4.1.6 KT (Korea Telecom) ...... 78 4.1.7 Mobily Saudi Arabia ...... 79 4.1.8 NAKA Mobile ...... 80 4.1.9 NTT Communications ...... 81 4.1.10 NTT DoCoMo ...... 82 4.1.11 PT (Portugal Telecom) /Oi ...... 83 4.1.12 SingTel ...... 84 4.1.13 SK Telecom ...... 85 4.1.14 SoftBank ...... 86 4.1.15 Telekom Austria...... 87 4.1.16 Telstra ...... 88 4.1.17 Telefónica ...... 89 4.1.18 Verizon ...... 91 4.1.19 Vodafone ...... 92 4.2 Enterprise & Data Center Deployment Case Studies ...... 93 4.2.1 Equinix ...... 93 4.2.2 Fidelity Investments ...... 93 4.2.3 Google ...... 94 4.2.4 Kanazawa University Hospital ...... 94 4.2.5 Nippon Express ...... 95 5 Chapter 5: Industry Roadmap and Value Chain ...... 96 5.1 The SDN, NFV & Network Virtualization Value Chain ...... 96 5.1.1 Silicon & Server OEMs ...... 97 5.1.2 Pure-play SDN/NFV Specialists ...... 97 5.1.3 Network Infrastructure Vendors ...... 97
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5.1.4 IT Industry Giants ...... 98 5.1.5 Mobile Infrastructure Vendors ...... 98 5.1.6 BSS/OSS & Software Vendors ...... 98 5.1.7 Enterprises ...... 99 5.1.8 Service Providers ...... 99 5.1.9 Data Center Operators ...... 99 5.2 The SDN, NFV & Network Virtualization Industry Roadmap: 2015 - 2020 ...... 100 5.2.1 Enterprise & Data Center SDN Rollouts: Pre-2015 ...... 100 5.2.2 NFV Trials and Vendor Consolidation: 2015 - 2017 ...... 100 5.2.3 Large Scale Proliferation in Service Provider Networks: 2018 - 2020 ...... 101 6 Chapter 6: Standardization Bodies & Alliances ...... 102 6.1 3GPP (3rd Generation Partnership Project) ...... 102 6.2 ETSI (European Telecommunications Standards Institute) ...... 102 6.3 Cloud NFV ...... 103 6.4 IETF (Internet Engineering Task Force) ...... 103 6.5 IRTF (Internet Research Task Force) ...... 104 6.6 ITU (International Telecommunications Union) ...... 105 6.7 MEF (Metro Ethernet Forum) ...... 105 6.8 ONF (Open Networking Foundation) ...... 106 6.9 OpenDaylight ...... 106 6.10 OpenStack Foundation ...... 107 6.11 ONRC (Open Networking Research Center) and ON.Lab (Open Networking Lab) ...... 108 6.12 OPNFV (Open Platform for NFV) ...... 109 6.13 OVA (Open Virtualization Alliance) ...... 109 6.14 OMG (Object Management Group) ...... 110 6.15 TM Forum ...... 110 6.16 Vendor Led Initiatives & Ecosystem Programs ...... 111 6.16.1 CloudBand NFV Ecosystem Program (Alcatel-Lucent Led) ...... 111 6.16.2 Blue Orbit Ecosystem Program (Cyan Led) ...... 111 6.16.3 OpenNFV Application Partner Program (HP Led) ...... 112
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6.16.4 Network Builders Program (Intel Led) ...... 112 6.16.5 OpenContrail (Juniper Led)...... 112 6.16.6 FlowForwarding (Infoblox Led) ...... 113 7 Chapter 7: Company Profiles ...... 114 7.1 6WIND ...... 114 7.2 A10 Networks ...... 115 7.3 Accedian Networks ...... 116 7.4 Active Broadband Networks ...... 117 7.5 ADARA Networks ...... 118 7.6 Adax ...... 119 7.7 ADLINK Technology ...... 120 7.8 ADVA Optical Networking ...... 121 7.9 Aeroflex (Cobham) ...... 122 7.10 Affirmed Networks ...... 123 7.11 Airvana ...... 124 7.12 Akamai Technologies ...... 125 7.13 Alcatel-Lucent/Nuage Networks ...... 126 7.14 Altiostar Networks ...... 127 7.15 Alvarion Technologies ...... 128 7.16 Allot Communications ...... 129 7.17 Altera Corporation ...... 130 7.18 Amartus ...... 131 7.19 AMD (Advanced Micro Devices) ...... 132 7.20 Amdocs ...... 133 7.21 Argela (Turk Telekom Subsidiary) ...... 134 7.22 Aricent ...... 135 7.23 Arista Networks ...... 136 7.24 ARM Holdings ...... 137 7.25 Artesyn Embedded Technologies ...... 138 7.26 ASOCS ...... 139
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7.27 AudioCodes ...... 140 7.28 Avaya ...... 141 7.29 Big Switch Networks...... 142 7.30 Blue Coat ...... 143 7.31 Broadcom ...... 144 7.32 Brocade/Vyatta ...... 145 7.33 Calsoft Labs/ALTEN Group ...... 146 7.34 Canonical ...... 147 7.35 Catbird Networks ...... 148 7.36 Cavium...... 149 7.37 Cedexis ...... 150 7.38 Cellwize ...... 151 7.39 Centec Networks ...... 152 7.40 Ceragon Networks ...... 153 7.41 Certes Networks ...... 154 7.42 Check Point Software Technologies ...... 155 7.43 Ciena ...... 156 7.44 Cisco Systems ...... 157 7.45 Citrix Systems ...... 158 7.46 Clavister ...... 159 7.47 ClearPath Networks ...... 160 7.48 CloudScaling (EMC Subsidiary) ...... 161 7.49 CohesiveFT ...... 162 7.50 Colt ...... 163 7.51 Compass-EOS ...... 164 7.52 Comptel ...... 165 7.53 Connectem ...... 166 7.54 ConteXtream ...... 167 7.55 Coriant ...... 168 7.56 Corsa Technology ...... 169 7.57 Cumulus Networks ...... 170
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7.58 Cyan ...... 171 7.59 Dell ...... 172 7.60 Dorado Software ...... 174 7.61 Embrane ...... 175 7.62 EMC Corporation ...... 176 7.63 EnterpriseWeb ...... 177 7.64 Ericsson ...... 178 7.65 EXFO ...... 180 7.66 Extreme Networks ...... 181 7.67 EZchip Technologies ...... 182 7.68 F5 Networks / LineRate Systems ...... 183 7.69 Flash Networks ...... 184 7.70 Flextronics ...... 185 7.71 Fortinet...... 186 7.72 FRAFOS ...... 187 7.73 Freescale ...... 188 7.74 Fujitsu ...... 189 7.75 GENBAND ...... 190 7.76 Gencore Systems ...... 191 7.77 Gigamon ...... 192 7.78 GigaSpaces Technologies ...... 193 7.79 GoGrid ...... 194 7.80 Guavus ...... 195 7.81 H3C Technologies ...... 196 7.82 HP (Hewlett-Packard) ...... 197 7.83 Hitachi ...... 198 7.84 Huawei ...... 199 7.85 IBM ...... 200 7.86 Infinera ...... 202 7.87 Infoblox ...... 203 7.88 Inocybe Technologies ...... 204
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7.89 Intracom Telecom ...... 205 7.90 Intel Corporation ...... 206 7.91 Intune Networks ...... 208 7.92 IP Infusion...... 209 7.93 Ipgallery ...... 210 7.94 ISC8...... 211 7.95 Itatel ...... 212 7.96 Ixia ...... 213 7.97 JDSU ...... 214 7.98 Juniper Networks ...... 215 7.99 KEMP Technologies ...... 216 7.100 Lancope ...... 217 7.101 Lemko ...... 218 7.102 Lumeta Corporation ...... 219 7.103 Luxoft Holding ...... 220 7.104 Lyatiss ...... 221 7.105 Marvell ...... 222 7.106 Mavenir ...... 223 7.107 MediaTek ...... 224 7.108 Mellanox Technologies ...... 225 7.109 Metaswitch Networks ...... 226 7.110 Microsoft ...... 227 7.111 Midokura ...... 228 7.112 Mirantis ...... 229 7.113 Mojatatu Networks ...... 230 7.114 MRV Communications ...... 231 7.115 Napatech ...... 232 7.116 Nakina Systems ...... 233 7.117 NCLC (NCL Communication)...... 234 7.118 NEC...... 235 7.119 NetCracker Technology Corp (Part of NEC) ...... 236
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The SDN, NFV & Network Virtualization Bible: 2015 – 2020
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7.120 Netgear ...... 237 7.121 Netronome ...... 238 7.122 Netrounds ...... 239 7.123 NetScout Systems ...... 240 7.124 Netsocket ...... 241 7.125 NetYCE ...... 243 7.126 Nokia Networks ...... 244 7.127 Nominum ...... 246 7.128 NoviFlow ...... 247 7.129 Omnitron Systems ...... 248 7.130 Openet ...... 249 7.131 Openwave Mobility...... 250 7.132 Optelian ...... 251 7.133 Oracle Corporation ...... 252 7.134 Orchestral Networks ...... 254 7.135 Overture Networks ...... 255 7.136 Pantheon Technologies ...... 256 7.137 Palo Alto Networks ...... 257 7.138 PeerApp ...... 258 7.139 Pertino ...... 259 7.140 Pica8 ...... 260 7.141 Piston Cloud Computing ...... 261 7.142 Plexxi ...... 262 7.143 PLUMgrid ...... 263 7.144 Pluribus Networks ...... 264 7.145 Polaris Networks ...... 265 7.146 Polatis ...... 266 7.147 PowerDNS ...... 267 7.148 Procera Networks ...... 268 7.149 PureWave Networks ...... 269 7.150 Qosmos ...... 270
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7.151 Qualcomm ...... 271 7.152 Quobis ...... 272 7.153 Quortus ...... 273 7.154 Rackspace ...... 274 7.155 Radisys Corporation ...... 275 7.156 Radware ...... 276 7.157 RAD Data Communications ...... 277 7.158 Red Bend Software ...... 278 7.159 Red Hat ...... 279 7.160 RightScale...... 280 7.161 Riverbed Technology ...... 281 7.162 Ruckus Wireless ...... 282 7.163 Saisei Networks ...... 283 7.164 Sandvine ...... 284 7.165 Samsung ...... 285 7.166 SanDisk Corporation ...... 286 7.167 ServiceMesh ...... 287 7.168 SevOne ...... 288 7.169 Silver Peak Systems ...... 289 7.170 Skyfire/Opera Software ...... 290 7.171 Sonus Networks ...... 291 7.172 SpiderCloud Wireless ...... 292 7.173 Spirent Communications ...... 293 7.174 StackIQ ...... 294 7.175 SunTech Business Solutions ...... 295 7.176 Svarog Technology Group ...... 296 7.177 Symantec Corporation ...... 297 7.178 Telchemy ...... 298 7.179 Telco Systems ...... 299 7.180 Telcoware ...... 300 7.181 Telum ...... 301
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7.182 Tellabs ...... 302 7.183 TI (Texas Instruments) ...... 303 7.184 Tieto ...... 304 7.185 TorreyPoint ...... 305 7.186 Transmode ...... 306 7.187 TrendMicro ...... 307 7.188 UBIqube Solutions ...... 308 7.189 vArmour Networks...... 309 7.190 Vello Systems ...... 310 7.191 Versa Networks ...... 311 7.192 Virtela (NTT Owned) ...... 312 7.193 VMware/Nicira (EMC Subsidiary) ...... 313 7.194 VSS Monitoring ...... 314 7.195 WatchGuard Technologies ...... 315 7.196 Wavenet ...... 316 7.197 WebNMS (Zoho Corporation) ...... 317 7.198 Websense ...... 318 7.199 Wedge Networks ...... 319 7.200 WiPro ...... 320 7.201 Xpliant ...... 321 7.202 Zhone Technologies ...... 322 7.203 ZTE Corporation ...... 323 7.204 Others ...... 324 8 Chapter 8: Market Analysis & Forecasts ...... 326 8.1 Global Outlook of the SDN, NFV & Network Virtualization Market Revenue: 2015 - 2020 ...... 326 8.2 User Base Segmentation ...... 327 8.2.1 Data Centers & Enterprises ...... 328 8.2.2 Service Providers ...... 329 8.3 Submarket Segmentation ...... 330 8.3.1 SDN Hardware & Software ...... 331
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8.3.2 NFV Hardware & Software ...... 332 8.3.3 Other Network Virtualization Software...... 333 8.3.4 Service Provider Submarket Segmentation ...... 334 8.4 SDN Submarket Revenue: 2015 – 2020 ...... 335 8.4.1 User Base Segmentation ...... 335 8.4.2 Service Provider SDN ...... 336 8.4.3 Enterprise & Data Center SDN ...... 337 8.5 NFV Submarket Revenue: 2015 – 2020 ...... 338 8.5.1 Hardware Appliances ...... 339 8.5.2 Orchestration & Management Software ...... 340 8.5.3 VNF Software ...... 341 8.6 Service Provider SDN Submarket Revenue: 2015 – 2020 ...... 342 8.6.1 SDN-Enabled Hardware Appliances...... 343 8.6.2 Orchestration & Management Software ...... 344 8.6.3 SDN Controller Software ...... 345 8.6.4 Network Applications Software ...... 346 8.7 Enterprise/Data Center SDN Submarket Revenue: 2015 – 2020 ...... 347 8.7.1 SDN-Enabled Hardware Appliances...... 348 8.7.2 SDN-Enabled Virtual Switches ...... 349 8.7.3 SDN Controller Software ...... 350 8.8 Functional Area Segmentation for Service Provider Deployments ...... 351 8.8.1 Radio Access Networks ...... 352 8.8.2 Mobile Core, EPC, Policy & IMS Services ...... 352 8.8.3 OSS/BSS ...... 353 8.8.4 Service Provider Data Center ...... 353 8.8.5 Mobile Backhaul ...... 354 8.8.6 Wireline Fixed Access Networks ...... 354 8.8.7 CPE/Home Environment ...... 355 8.9 Regional Outlook ...... 356 8.10 Asia Pacific SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ...... 357 8.10.1 Country Level Segmentation ...... 357
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8.10.2 Australia ...... 358 8.10.3 China ...... 358 8.10.4 India ...... 359 8.10.5 Japan...... 359 8.10.6 South Korea ...... 360 8.10.7 Pakistan ...... 360 8.10.8 Thailand ...... 361 8.10.9 Indonesia ...... 361 8.10.10 Malaysia ...... 362 8.10.11 Taiwan ...... 362 8.10.12 Philippines ...... 363 8.10.13 Singapore ...... 363 8.10.14 Rest of Asia Pacific ...... 364 8.11 Eastern Europe SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ...... 365 8.11.1 Country Level Segmentation ...... 365 8.11.2 Czech Republic ...... 366 8.11.3 Poland ...... 366 8.11.4 Russia ...... 367 8.11.5 Rest of Eastern Europe ...... 367 8.12 Latin & Central America SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ...... 368 8.12.1 Country Level Segmentation ...... 368 8.12.2 Argentina ...... 369 8.12.3 Brazil ...... 369 8.12.4 Mexico ...... 370 8.12.5 Rest of Latin & Central America ...... 370 8.13 Middle East & Africa SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ...... 371 8.13.1 Country Level Segmentation ...... 371 8.13.2 South Africa ...... 372 8.13.3 UAE ...... 372 8.13.4 Qatar ...... 373 8.13.5 Saudi Arabia ...... 373
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8.13.6 Israel ...... 374 8.13.7 Rest of the Middle East & Africa...... 374 8.14 North America SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ...... 375 8.14.1 Country Level Segmentation ...... 375 8.14.2 USA ...... 376 8.14.3 Canada ...... 376 8.15 Western Europe SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ...... 377 8.15.1 Country Level Segmentation ...... 377 8.15.2 Denmark ...... 378 8.15.3 Finland ...... 378 8.15.4 France ...... 379 8.15.5 Germany ...... 379 8.15.6 Italy ...... 380 8.15.7 Spain ...... 380 8.15.8 Sweden ...... 381 8.15.9 Norway ...... 381 8.15.10 UK ...... 382 8.15.11 Rest of Western Europe ...... 382 9 Chapter 9: Conclusion & Strategic Recommendations ...... 383 9.1 Will SDN & NFV Disrupt the Network Infrastructure Value Chain? ...... 383 9.2 Is There a Ring Leader in the SDN & NFV Ecosystem? ...... 384 9.3 SDN & NFV: Building the Mobile Cloud ...... 384 9.4 Buyers Will Maintain Focus on Business Agility & CapEx Reduction ...... 385 9.5 Avoiding the Proprietary Trap ...... 385 9.6 Will Service Providers Continue to Utilize Proprietary Hardware Platforms?...... 386 9.7 Making the VoLTE and RCS Business Case Work ...... 386 9.8 How Much CapEx Can Service Providers Save with SDN & NFV Investments? ...... 387 9.9 Prospects of SDN & NFV Orchestration ...... 388 9.9.1 Different Vendors, Different Approaches ...... 389 9.9.2 Future Prospects of Harmonization ...... 390
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9.9.3 How Big is the Orchestration Opportunity? ...... 390 9.10 Strategic Recommendations ...... 391 9.10.1 Recommendations for Silicon & Server OEMs ...... 391 9.10.2 Recommendations for Network & Mobile Infrastructure Vendors & IT Giants ...... 391 9.10.3 Recommendations for Pure-play SDN/NFV Specialists ...... 391 9.10.4 Recommendations for Enterprises and Data Center Operators ...... 392 9.10.5 Recommendations for Service Providers ...... 392
List of Figures
Figure 1: The NFV Concept ...... 43 Figure 2: A Comparison of SDN and NFV ...... 48 Figure 3: C-RAN Architecture...... 60 Figure 4: Virtualized and Non-Virtualized Mobile Core Networks ...... 63 Figure 5: The SDN, NFV & Network Virtualization Value Chain ...... 96 Figure 6: The SDN, NFV & Network Virtualization Industry Roadmap: 2015 - 2020 ...... 100 Figure 7: Global SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 326 Figure 8: Global SDN, NFV & Network Virtualization Revenue by User Base: 2015 - 2020 ($ Million)...... 327 Figure 9: Global Data Center/Enterprise SDN & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 328 Figure 10: Global Service Provider SDN & NFV Revenue by User Base: 2015 - 2020 ($ Million) ...... 329 Figure 11: Global SDN, NFV & Network Virtualization Revenue by Submarket: 2015 - 2020 ($ Million) ...... 330 Figure 12: Global SDN Hardware & Software Revenue: 2015 - 2020 ($ Million) ...... 331 Figure 13: Global NFV Hardware & Software Revenue: 2015 - 2020 ($ Million)...... 332 Figure 14: Global Other Network Virtualization Software Revenue: 2015 - 2020 ($ Million) ...... 333 Figure 15: Global Service Provider SDN & NFV Revenue by Submarket: 2015 - 2020 ($ Million) ...... 334 Figure 16: Global SDN Revenue by User Base: 2015 - 2020 ($ Million) ...... 335 Figure 17: Global Service Provider SDN Hardware & Software Revenue: 2015 - 2020 ($ Million) ...... 336 Figure 18: Global Enterprise/Data Center SDN Revenue: 2015 - 2020 ($ Million) ...... 337 Figure 19: Global NFV Revenue by Submarket: 2015 - 2020 ($ Million) ...... 338 Figure 20: Global NFV Hardware Appliance Revenue: 2015 - 2020 ($ Million) ...... 339 Figure 21: Global NFV Orchestration & Management Software Revenue: 2015 - 2020 ($ Million) ...... 340 Figure 22: Global NFV VNF Software Revenue: 2015 - 2020 ($ Million) ...... 341 Figure 23: Global Service Provider SDN Revenue by Submarket: 2015 - 2020 ($ Million) ...... 342 Figure 24: Global Service Provider SDN-Enabled Hardware Appliance Revenue: 2015 - 2020 ($ Million) ...... 343 Figure 25: Global Service Provider SDN Orchestration & Management Revenue: 2015 - 2020 ($ Million) ...... 344 Figure 26: Global Service Provider SDN Controller Software Revenue: 2015 - 2020 ($ Million) ...... 345 Figure 27: Global Service Provider SDN Network Applications Software Revenue: 2015 - 2020 ($ Million) ...... 346 Figure 28: Global Enterprise/Data Center SDN Revenue by Submarket: 2015 - 2020 ($ Million) ...... 347
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Figure 29: Global Enterprise/Data Center SDN-Enabled Hardware Appliance Revenue: 2015 - 2020 ($ Million) ...... 348 Figure 30: Global Enterprise/Data Center SDN-Enabled Hardware Appliance Revenue: 2015 - 2020 ($ Million) ...... 349 Figure 31: Global Enterprise/Data Center SDN Controller Software Revenue: 2015 - 2020 ($ Million) ...... 350 Figure 32: Global Service Provider SDN & NFV Revenue by Functional Area: 2015 - 2020 ($ Million) ...... 351 Figure 33: Global Radio Access Networks SDN & NFV Revenue: 2015 - 2020 ($ Million) ...... 352 Figure 34: Global Mobile Core, EPC, Policy & IMS Services SDN & NFV Revenue: 2015 - 2020 ($ Million) ...... 352 Figure 35: Global OSS/BSS SDN & NFV Revenue: 2015 - 2020 ($ Million) ...... 353 Figure 36: Global Service Provider Data Center SDN & NFV Revenue: 2015 - 2020 ($ Million) ...... 353 Figure 37: Global Mobile Backhaul SDN & NFV Revenue: 2015 - 2020 ($ Million) ...... 354 Figure 38: Global Wireline Fixed Access Networks SDN & NFV Revenue: 2015 - 2020 ($ Million) ...... 354 Figure 39: Global CPE/Home Environment SDN & NFV Revenue: 2015 - 2020 ($ Million) ...... 355 Figure 40: SDN, NFV & Network Virtualization Revenue by Region: 2015 - 2020 ($ Million) ...... 356 Figure 41: Asia Pacific SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 357 Figure 42: Asia Pacific SDN, NFV & Network Virtualization Revenue by Country: 2015 - 2020 ($ Million) ...... 357 Figure 43: Australia SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 358 Figure 44: China SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 358 Figure 45: India SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 359 Figure 46: Japan SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 359 Figure 47: South Korea SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 360 Figure 48: Pakistan SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 360 Figure 49: Thailand SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 361 Figure 50: Indonesia SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 361 Figure 51: Malaysia SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 362 Figure 52: Taiwan SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 362 Figure 53: Philippines SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 363 Figure 54: Singapore SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 363 Figure 55: SDN, NFV & Network Virtualization Revenue in the Rest of Asia Pacific: 2015 - 2020 ($ Million) ...... 364 Figure 56: Eastern Europe SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 365 Figure 57: Eastern Europe SDN, NFV & Network Virtualization Revenue by Country: 2015 - 2020 ($ Million)...... 365 Figure 58: Czech Republic SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 366 Figure 59: Poland SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 366 Figure 60: Russia SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 367 Figure 61: SDN, NFV & Network Virtualization Revenue in the Rest of Eastern Europe: 2015 - 2020 ($ Million) ...... 367 Figure 62: Latin & Central America SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 368 Figure 63: Latin & Central America SDN, NFV & Network Virtualization Revenue by Country: 2015 - 2020 ($ Million) ...... 368 Figure 64: Argentina SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 369 Figure 65: Brazil SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million)...... 369 Figure 66: Mexico SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million)...... 370 Figure 67: SDN, NFV & Network Virtualization Revenue in the Rest of Latin & Central America: 2015 - 2020 ($ Million) ...... 370 Figure 68: Middle East & Africa SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 371 Figure 69: Middle East & Africa SDN, NFV & Network Virtualization Revenue by Country: 2015 - 2020 ($ Million) ...... 371 Figure 70: South Africa SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 372
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The SDN, NFV & Network Virtualization Bible: 2015 – 2020
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Figure 71: UAE SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million)...... 372 Figure 72: Qatar SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 373 Figure 73: Saudi Arabia SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 373 Figure 74: Israel SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 374 Figure 75: SDN, NFV & Network Virtualization Revenue in the Rest of the Middle East & Africa: 2015 - 2020 ($ Million) ...... 374 Figure 76: North America SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 375 Figure 77: North America SDN, NFV & Network Virtualization Revenue by Country: 2015 - 2020 ($ Million) ...... 375 Figure 78: USA SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 376 Figure 79: Canada SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 376 Figure 80: Western Europe SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 377 Figure 81: Western Europe SDN, NFV & Network Virtualization Revenue by Country: 2015 - 2020 ($ Million) ...... 377 Figure 82: Denmark SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 378 Figure 83: Finland SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 378 Figure 84: France SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 379 Figure 85: Germany SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 379 Figure 86: Italy SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 380 Figure 87: Spain SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million)...... 380 Figure 88: Sweden SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 381 Figure 89: Norway SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 381 Figure 90: UK SDN, NFV & Network Virtualization Revenue: 2015 - 2020 ($ Million) ...... 382 Figure 91: SDN, NFV & Network Virtualization Revenue in the Rest of Western Europe: 2015 - 2020 ($ Million) ...... 382 Figure 92: SDN & NFV Induced Service Provider CapEx Saving Potential by Region: 2015 - 2020 ($ Million) ...... 387 Figure 93: Orchestration as a Percentage of Service Provider SDN & NFV Spending: 2015 – 2020 (%) ...... 388 Figure 94: Management & Orchestration Software Revenue by Submarket: 2015 - 2020 ($ Million)...... 390
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The SDN, NFV & Network Virtualization Bible: 2015 – 2020
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1 Chapter 1: Introduction
1.1 Executive Summary
SDN (Software Defined Networking) is new networking model where control of the network is decoupled from the physical hardware allowing a logically centralized software program to control the behavior of an entire network. This results in reduced reliance on proprietary networking hardware, increased network efficiency, centralized traffic engineering, faster time to troubleshooting and new feature deployment. SDN also complements network virtualization by facilitating the creation of multiple virtual networks running over a common physical network fabric.
NFV (Network functions virtualization) is a service provider initiative that is often linked to SDN. NFV aims to virtualize and effectively consolidate many network equipment types onto multi-tenant industry-standard servers, switches and storage to lower cost, improve efficiency and increase agility.
While the benefits of SDN and network virtualization are well known in the enterprise IT and data center world, both technologies also bring a hosts of benefits to the telecommunications service provider/carrier community.
Not only can SDN and NFV help address the explosive capacity demand of mobile traffic, but they can also reduce the CapEx and OpEx burden faced by service providers to handle this demand by diminishing reliance on expensive proprietary hardware platforms.
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The SDN, NFV & Network Virtualization Bible: 2015 – 2020
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SDN has been widely deployed in data center and enterprise environments, and many service provider deployments are already underway. While NFV is still a developing technology, many vendors have already developed commercial-grade solutions that align well with the NFV initiative.
Driven by the thriving ecosystem, SNS Research estimates that the SDN, NFV and network virtualization market will account for nearly $10 Billion in 2015 alone. Despite barriers relating to standardization and co-existence with legacy networks, SNS Research estimates further growth at a CAGR of 37% over the next 5 years.
This report presents an in-depth assessment of the global SDN, NFV and network virtualization market. In addition to covering underlying technology, key market drivers, challenges, future roadmap, value chain analysis, deployment case studies, company profiles, product strategies and strategic recommendations, the report also presents comprehensive forecasts for the market from 2015 till 2020. The forecasts are individually segmented for 10 individual submarkets, 2 user base categories, 7 use case categories, 6 geographical regions and 34 countries.
The report comes with an associated Excel datasheet covering quantitative data from all figures presented within the report.
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The SDN, NFV & Network Virtualization Bible: 2015 – 2020
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1.2 Topics Covered
The report covers the following topics:
. The scope and implementation of SDN, NFV and network virtualization across the globe . SDN, NFV and network virtualization technology . Market drivers and key benefits of SDN, NFV and network virtualization . Challenges and inhibitors to the ecosystem . Standardization and regulatory initiatives . Use cases and application case studies of SDN and NFV . SDN and NFV deployment case studies . SDN and NFV induced service provider CapEx savings . Value chain analysis of the ecosystem and the recognition of key players in each segment of the value chain . Industry roadmap from 2015 till 2020 . Key trends in the ecosystem; SDN and NFV’s impact on the network infrastructure value chain, prospects of orchestration platforms, the stance of incumbent vendors towards SDN and NFV, impact on the proprietary hardware market and co-existence with legacy networks . Profiles and strategies of over 200 key players in the ecosystem . Strategic recommendations for silicon & server OEMs, network & mobile Infrastructure vendors, IT giants, pure-play SDN/NFV specialists, enterprises, data center operators and service providers . Historical revenue figures and forecasts till 2020
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The SDN, NFV & Network Virtualization Bible: 2015 – 2020
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1.3 Forecast Segmentation
. Market forecasts are provided for each of the following submarkets, use base and use case categories: - Submarkets . SDN Hardware & Software . NFV Hardware & Software . Other Network Virtualization Software - User Base Categories . Service Providers . Data Centers & Enterprises - NFV Submarkets . Hardware Appliances . Orchestration & Management Software . VNF Software - Service Provider SDN Submarkets . SDN-Enabled Hardware Appliances . Orchestration & Management Software . SDN Controller Software . Network Applications Software - Data Center/Enterprise SDN Submarkets . SDN-Enabled Hardware Appliances . SDN-Enabled Virtual Switches . SDN Controller Software - Service Provider Use Case Categories . Radio Access Networks . Mobile Core, EPC, Policy & IMS Services
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. OSS/BSS . Data Center . Mobile Backhaul . Wireline Fixed Access Networks . CPE/Home Environment . The following regional and country markets are also covered: - Regional Markets . Asia Pacific . Eastern Europe . Latin & Central America . Middle East & Africa . North America . Western Europe - Country Markets . Argentina, Australia, Brazil, Canada, China, Czech Republic, Denmark, Finland, France, Germany, India, Indonesia, Israel, Italy, Japan, Malaysia, Mexico, Norway, Pakistan, Philippines, Poland, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Taiwan, Thailand, UAE, UK, USA . Additional forecasts are provided for: . SDN and NFV Induced Service Provider CapEx Savings by Region
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1.4 Key Questions Answered
The report provides answers to the following key questions:
What are the key market drivers and challenges for SDN, NFV and the wider network virtualization ecosystem? How can SDN and NFV complement each other? What are the key applications and use cases of SDN and NFV? How is the SDN, NFV and network virtualization value chain structured and how will it evolve overtime? What opportunities do SDN and NFV offer to silicon & server OEMs, network & mobile Infrastructure vendors, IT giants, pure-play SDN/NFV specialists, enterprises, data center operators and service providers and other players in the value chain? What strategies should these players adopt to capitalize on the SDN and NFV opportunity? How are SDN and NFV vendors positioning their product offerings? How big is the SDN, NFV and network virtualization ecosystem, and how much revenue will it generate in 2020? What particular submarkets does the ecosystem constitute? What geographical regions, countries and submarkets offer the greatest growth potential for SDN and NFV investments? Who are the key players in the SDN and NFV ecosystem and what are their strategies?
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How will SDN and NFV impact the network infrastructure value chain? Is there a ring leader in the SDN and NFV ecosystem? How long will service providers continue to utilize proprietary hardware platforms? How can SDN and NFV help make the VoLTE (Voice over LTE) and RCS (Rich Communication Services) business case work? How can software-defined DPI (Deep Packet Inspection) complement SDN functionality? What level of CapEx savings can SDN and NFV facilitate for service providers in each region?
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The SDN, NFV & Network Virtualization Bible: 2015 – 2020
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1.5 Key Findings
The report has the following key findings:
Driven by the thriving ecosystem, SNS Research estimates that the SDN, NFV and network virtualization market will account for nearly $10 Billion in 2015 alone. SNS Research estimates further growth at a CAGR of 37% over the next 6 years Spending on SDN/NFV orchestration platforms is expected to grow at a CAGR of nearly 60% between 2015 and 2020. By the end of 2020, orchestration platforms will account for $1.7 Billion in revenue, representing more than 8% of all service provider SDN/NFV spending Although network virtualization in the enterprise IT and data center domain has received significant attention in the past years, service provider network virtualization is still at a nascent stage SDN and NFV empower a multitude of network functions to be implemented cost effectively in software, ranging from standard mobile IMS (IP Multimedia System) services to features such as DPI (Deep Packet Inspection) By 2017 we expect to see significant price and gross margin erosion for traditional hardware-based network switching equipment driven by alternative software based solutions By 2020 SNS Research estimates that SDN and NFV can enable service providers (both wireline and wireless) to save up to $32 Billion in annual CapEx investments
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The SDN, NFV & Network Virtualization Bible: 2015 – 2020
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1.6 Methodology
The contents of this report have been accumulated by combining information attained from a range of primary and secondary research sources. In addition to analyzing official corporate announcements, policy documents, media reports, and industry statements, SNS Research sought opinions from leading industry players within the SDN, NFV and network virtualization market to derive an unbiased, accurate and objective mix of market trends, forecasts and the future prospects of the industry between 2015 and 2020.
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The SDN, NFV & Network Virtualization Bible: 2015 – 2020
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1.7 Target Audience
The report targets the following audience.
Silicon and server OEMs SDN, NFV and network virtualization solution providers Network Infrastructure vendors Mobile network infrastructure vendors IT industry giants BSS/OSS & software vendors Enterprises Data center operators Telecommunication service providers Application developers & integrators Investment firms
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The SDN, NFV & Network Virtualization Bible: 2015 – 2020
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1.8 Companies & Organizations Mentioned
The following companies and organizations have been reviewed, discussed or mentioned in the report:
21 Vianet Group DT (Deutsche Telekom) MediaTek Ruckus Wireless 3GPP (3rd Generation ECI Telecom MEF (Metro Ethernet Saisei Networks Partnership Project) Forum) 6connect Ecode Networks Mellanox Technologies Samsung 6WIND Edgenet Mentor Graphics Sanctum Networks A10 Networks Edgewater Networks Metaswitch Networks SanDisk Corporation Accedian Networks Elbrys Networks MetraTech Sandvine Corporation Accton Elisa Oyj Microsoft Scalr Acme Packet Embrane Midokura SCLID Innovations ActionPacked Networks EMC Corporation Mirantis SDNSquare Active Broadband Emerson Network Power MKI USA ServiceMesh Networks ADARA Networks Emulex Mobily Saudi Arabia Seven Principles Adax Enterasys Networks Mojatatu Networks SevOne ADLINK Technology EnterpriseWeb MontaVista Sharp ADTRAN Equinix Motorola Mobility Shenick Network Systems ADVA Optical Networking Ericsson MRV Communications Sichuan Unicom Advantech EstiNet Technologies Mtel Silver Peak Systems AEPONYX ETRI (Electronics and NAKA Mobile SingTel (Singapore Telecommunications Telecommunications Research Institute) Limited) Aeroflex ETSI (European Nakina Systems SK Telecom Telecommunications Standards Institute) Affirmed Networks EXFO Napatech Skyfire Airvana Extreme Networks Nari Networks Snabb Akamai Technologies EZchip Narinet SoftBank Alcatel-Lucent EZchip Technologies NASA ( National Solarflare Aeronautics and Space Communications Administration)
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Algar Telecom F5 Networks NCLC (NCL SolarWinds Communication) Alibaba Facebook Nebula SolidFire Allot Communications Fiberhome Technologies NEC SonicWALL Altaro Fidelity Investments Nephos6 Sonus Networks ALTEN Group Firemon Net Optics SpiderCloud Wireless Altera Corporation Fishnet Security NetApp Spirent Communications Altiostar Networks Flanagan Consulting NetCracker Splunk Technology Corporation Alvarion Technologies Flash Networks NetFlow Logic Sprint Corporation Amartus Flextronics Netgear StackIQ Amazon Force10 Networks NetNumber Stanford University AMD (Advanced Micro Fortinet Netronome Stateless Networks Devices) Amdocs FRAFOS Netrounds Stork Lab Amethon Fraunhofer FOKUS NetScout Systems Stratosphere Anuta Networks Freescale Netsocket Sunbay Apple FTW - NetStructures SunTech Business Telecommunications Solutions Research Centre Vienna Argela Fujian Telecom NetYCE Super Micro Aricent Group Fujitsu NICE Svarog Technology Group Arista Networks GE Intelligent Platforms Nicira Swisscom (GE Energy) ARM Holdings Gemtek Technologies Nicira Symantec Corporation Arnold Consulting GENBAND Nippon Express SYS Software Artesyn Embedded Gencore Systems Nissho Electronics Tail-f Systems Technologies Aruba Networks Gigamon Nokia Tallac Networks ASOCS GigaSpaces Technologies Nokia Networks Tata Consultancy Services AT&T GlimmerGlass Nominum Tech Mahindra aTAC Initiatives Glue Networks NoviFlow Tekelec AudioCodes GoGrid NTT Communications Tektronix Avago Technologies Goldman Sachs NTT Corporation Telchemy
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Avaya Google NTT Data Telco Systems Beijing Telecom Guavus NTT DoCoMo Telcoware Bell Canada H3C Technologies Nuage Networks Telecom Italia Benu Networks Hitachi Nuage Networks Telefónica Big Switch Networks Hitachi CTA (Hitachi Nutanix Telekom Austria Communication Technologies America) BII (Beijing Internet HP (Hewlett-Packard) OMG (Object TeliaSonera Institute) Management Group) BII Group Hrvatski Telekom Omnitron Systems Tellabs Blue Coat HTC ON.Lab (Open Telstra Networking Lab) Boundary Huawei One Convergence Telum Broadcom IBM ONF (Open Telus Networking Foundation) Brocade IBS Group ONRC (Open Tencent Networking Research Center) Browan Communications iCent OpenDaylight Tervela BSkyB IETF (Internet Engineering Openet Thales Task Force) BT III (Institute for OpenStack Foundation The Gap Information Industry) BTI Systems Indiana University Openwave Mobility TI (Texas Instruments) CableLabs IneoQuest Technologies Opera Software Tieto Calient Technologies Infinera Opera Software Tilera Corporation Calsoft Labs Infinetics OPNFV (Open TM Forum Platform for NFV) Canonical Infoblox Opscode T-Mobile Cariden Technologies Inktank Optelian TorreyPoint Carmel Ventures Inocybe Technologies Optus Transmode Catbird Networks INRIA (French Institute for Oracle Corporation Travelping GmbH Research in Computer Science) Cavium Networks Insieme Networks Orange TrendMicro Cedexis Intel Corporation Orchestral Networks Tucana Celestica Interphase Orient Logic Turk Telekom Cellcom Intracom Telecom OVA (Open Turk Telekom Virtualization Alliance)
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Cellwize Intune Networks Overture Networks TW Telecom Centec Networks IP Infusion PacketFront Software Ubicity Corporation CenturyLink Corporation Ipgallery Pacnet UBIqube Solutions Ceragon Networks IRTF (Internet Research Palo Alto Networks United Nations Task Force) Certes Networks ISC8 Pantheon University of Technologies California, Berkeley Cetan Corporation Iskratel Paxterra Solutions UPRC Check Point Software Italtel PayPal vArmour Networks Technologies China Mobile ITU (International PeakColo Vello Systems Telecommunications Union) China Telecom Ixia PeerApp Verisign ChipStart Jara Networks Pertino Verizon Communications Ciena JDSU Phillips Technology Verizon Wireless Solutions CIMI Corporation JumpGen Systems Pica8 Versa Networks Cisco Systems Juniper Networks Piston Cloud Veryx Technologies Computing Cisco WebEx Kanazawa University Pivotal Vipnet Hospital Citrix Systems KDDI Plexxi Virtela Clavister KEMP Technologies PLUMgrid Virtela (NTT Owned) ClearPath Networks Kloudspun Pluribus Networks Virtual Open Systems CloudFX KT (Korea Telecom) PLVision VirtualLogix CloudNFV Kulcloud PMC Sierra Visionael Corporation Cloudscaling Kyocera Polaris Networks VMware CloudSense L3 Communication Polatis Vodafone Systems – East CMRI (China Mobile Lagrange Systems PowerDNS VSS Monitoring Research Institute) Cobham Lancope Poznan Vyatta Supercomputing and Network Centre CohesiveFT Lanner Procera Networks Vyatta Colt Lanscope PT (Performance WatchGuard Technologies) Technologies Comcast Layer123 PT (Portugal Telecom) Wavenet /Oi
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Compass-EOS Lemko PureWave Networks WebNMS Comptel Level 3 Communications Qosmos Websense Connectem LG Electronics Qualcomm Wedge Networks ConteXtream LineRate Systems Quanta Wind River Systems Contrail Systems Linux Foundation Quobis Windstream Communications Coraid Locaweb Quortus WiPro Coriant LSI Corporation Rabobank Wiretap Corsa Technology Lumeta Corporation Rackspace WVNET Cplane Luxoft Holding RAD Data xFlow Research Communications CSC (Computer Sciences Lyatiss RadiSys Corporation XIUS Corporation) Cumulus Networks M2Mi Radware Xpliant Cyan Macnica Networks Real Status Xsigo Dell Mainline Information Red Bend Software Yahoo Systems Delta Electronics Marist College Red Hat Yokogawa DESS GmbH and Co. Marvell RightScale Zhone Technologies Consulting Dialogic Mavenir Riverbed Technology Zoho Corporation DirecTV McAfee Rogers ZTE Corporation Communications Dorado Software MeadowCom RuahTao
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The SDN, NFV & Network Virtualization Bible: 2015 – 2020
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Copyright SNS Research Ltd, 2014. All rights reserved.
This material is subject to the laws of copyright and is restricted to registered license-holders who have entered into a Corporate, a Multi-User or a Single-User license agreement with SNS Research Ltd. It is an offence for the license-holder to make the material available to any unauthorized person, either via e-mail messaging or by placing it on a network.
All SNS research reports & databases are intended to provide general information and strategic insights only, and they do not constitute, nor are they intended to constitute, investment advice. SNS Research and its employees disclaim all and any guarantees, undertakings and warranties, whether expressed or implied, and shall not be liable for any loss or damage whatsoever, and whether foreseeable or not, arising out of, or in connection with, any use of or reliance on any information, statements, opinions, estimates or forecasts contained in the reports.
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2.8 How SDN and NFV Differ from Each Other
2.8.1 Similarities and Differences
Both SDN and NFV are focused on making networking services easier to deploy, manage and scale while driving down the costs.
SDN NFV
Aim Separation of control and data Replace network functions from planes to centralize the control and dedicated appliances with programmability of network software that can run on generic servers Initial Target Market Enterprise IT infrastructure & data Service provider networks centers Target Devices Industry standard servers or Industry standard servers or switches switches Key Benefits Increase agility and drive down cost Increase agility and drive down and complexity cost and complexity
Figure 2: A Comparison of SDN and NFV
Source: SNS Research
The key difference is that SDN aims to split control and data planes of the networking environment, while NFV aims to replace network functions with software. Both approaches also focus on replacing proprietary purpose-built
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3.2.2 C-RAN (Cloud RAN)
Leveraging RAN virtualization technology as described in Section 3.2.1 also opens the doors for the C-RAN concept.
BBU (Baseband Units) Cloud for Centralized Processing
Fronthaul Transport Network Link
Distributed RRHs (Remote Radio Heads)
Figure 3: C-RAN Architecture
Source: SNS Research
In a traditional RAN architecture, each antenna connects to a co-located base station from which traffic is backhauled to the core. In a C-RAN setup, the base station at the antenna is replaced by a low-cost RRH (Remote Radio Head). The digitized RF data is then transported typically via a CPRI (Common Public Radio
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4.1.10 NTT DoCoMo
Like its fixed line business, NTT’s mobile subsidiary NTT DoCoMo is a taking an aggressive first mover stance to capitalize on SDN and NFV. The carrier views both technologies as a means to help reduce CapEx, avoid vendor lock-in, improve traffic control and increase network availability. Besides being a leading participant in the ETSI NFV industry specifications group, NTT DoCoMo is also one of the founding members of the OPNFV (Open Platform for NFV) project, aimed to support the development of an open-source platform for virtualization. Trials & PoC Activity In Q4’2014, NTT DoCoMo completed NFV PoC (Proof-of-Concept) trials using software and infrastructure from six vendors including Alcatel-Lucent, Cisco, Ericsson, Huawei, NEC, and Nokia Networks. Using these trials, the carrier successfully verified the interoperability of each vendor's vEPC (virtualized EPC) software with a different vendor’s orchestration platform in various scenarios, such as scalable data processing capability for congested data traffic and immediate network recovery in the event of hardware failure. Deployment Timelines NTT DoCoMo plans to virtualize its EPC in time to have commercial services running over it by the end of March 2016, a timeframe the carrier has reiterated several times. The carrier has not yet revealed a timeline for virtualizing other5 parts (such as RAN) of its network.
5 NTT DoCoMo plans to deploy a 5G network in time for the 2020 Tokyo Olympics. Prior to this deployment, we expect the carrier to virtualize a significant proportion of its network.
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5 Chapter 5: Industry Roadmap and Value Chain
This chapter reviews the industry roadmap and value chain for the SDN, NFV and network virtualization ecosystem.
5.1 The SDN, NFV & Network Virtualization Value Chain
The SDN, NFV and network virtualization value chain encompasses 9 major segments which work in conjunction to create an ecosystem of applications; silicon and server OEMs, pure-play SDN/NFV specialists, network infrastructure vendors, IT industry giants, mobile infrastructure vendors, BSS/OSS & software vendors, enterprises, service providers and data center operators.
Silicon & Network Enterprises Server OEMs Infrastructure Vendors
Pure-play SDN/NFV Specialists Service Providers IT Industry Enabler Ecosystem Giants Data Center Operators Mobile Infrastructure Vendors End User BSS/OSS/Software Ecosystem Vendors
Technology Distribution Ecosystem
Figure 5: The SDN, NFV & Network Virtualization Value Chain Source: SNS Research
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7.53 Connectem Connectem is a company focused on the virtualization of the mobile packet core. Founded in 2011, the company is headquartered in San Jose, California.
Connectem has developed one of the first ever instances of an LTE vEPC, with architectural attributes to support deployment over standard data center infrastructure. Marketed as the VCM (Virtual Core for Mobile) platform, the company’s vEPC solution delivers bespoke mobile packet core functionality as a set of software services running over low cost x86 servers and standard hypervisor technology.
In Q4’2012, Connectem became the first company to announce a trial vEPC deployment in a production network environment with Optus in Australia. Since then, Connectem has conducted deployments with numerous operators including Telekom Austria7.
In terms of industry alliances, Connectem collaborates with a number of prominent players in the NFV ecosystem including Amdocs, Amethon, Clavister, Cyan, IBM8, Intel, Procera Networks, Red Hat and VMware9. The company also
7 In Q2’2014, Telekom Austria’s Croatian mobile network operator subsidiary Vipnet deployed Connectem’s VCM vEPC platform, as part of an initiative to test and evaluate NFV. Vipnet also showcased live transmission of HD video on its LTE network with a data transfer speed of nearly 100 Mbps through Connectem's vEPC. 8 Although Connectem’s VCM platform can leverage the entire x86 ecosystem, its first demonstration (with Optus in Q4’2012) utilized the IBM PureFlex platform. 9 As part of its partnership with VMware, Connectem utilizes the VMware vSphere virtualization platform and the VMware ESXi hypervisor.
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7.84 Huawei Huawei is a Chinese multinational networking and telecommunications equipment and services company headquartered in Shenzhen, China. As one of the largest telecommunications equipment maker in the world, it is a major proponent of SDN and NFV.
While targeting both service provider and enterprise/data center customers, Huawei is particularly keen to virtualize its mobile network infrastructure offerings as its service provider customers seek to transition to an SDN/NFV centric architecture. The company now boasts a comprehensive portfolio of VNF software14, management & orchestration systems, SDN controllers and SDN capable switches, all of which are marketed under the company’s SoftCom unified framework.
Huawei is among the very first vendors to take service provider SDN/NFV solutions from lab and field trials to commercial deployments. The company made headlines in Q4’2014, when it revealed that it has over 60 SDN and NFV projects with more than 20 leading carriers15 around the world. Included among these projects are commercial SDN deployments with the likes of China Telecom16,
14 Huawei presently has vEPC, vIMS and vCPE offerings. 15 Including Telefonica, China Mobile, China Unicom, and China Telecom 16 In Q2’2014, China Telecom’s Beijing Telecom subsidiary deployed Huawei’s SDN solution for its internet data center. Later in Q4’2014, the operator’s Fujian Telecom subsidiary chose Huawei’s SDN solution for its T-SDN (Transport Software Defined Network). T-SDN will deliver private line BoD (Bandwidth on Demand) over a transport network.
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9.9 Prospects of SDN & NFV Orchestration
Despite accounting for a fraction of revenue, in comparison to VNF software, SDN controllers and SDN/NFV infrastructure, orchestration is one of the most crucial aspects for service provider SDN/NFV deployments.
9.00%
8.50%
8.00%
7.50%
7.00%
6.50%
6.00%
5.50%
5.00% 2015 2016 2017 2018 2019 2020
Figure 93: Orchestration as a Percentage of Service Provider SDN & NFV Spending: 2015 – 2020 (%)
Source: SNS Research
Due to the uniform nature of the physical and virtual elements in a data center environment, orchestration is a relatively straightforward process. However, the complex multi-service environment of modern service provider networks makes orchestration a major challenge due to the variability of costs, resources and
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