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IDC: NFV, SDN set to ‘revolutionize’ telecom space

International Data Corp. is the latest research firm to back the idea that network virtualization is set to revolutionize the telecom industry. This includes the move towards software-defined networking and network function virtualization, better known as SDN and NFV.
In a new report, IDC predicts that the ongoing “shift to the [third] platform, built on cloud, mobile, social and big data and analytics technologies” is forcing telecom operators and their suppliers to “accelerate their efficiencies and agility,” with virtualization “set to revolutionize the telecom industry as it transforms the culture and operational infrastructure, as well as the fabric of legacy proprietary infrastructures that have, until now, dominated the space.”
“Despite budget concerns and questions about the ability to execute on the network virtualization vision, [communication service providers], telecom vendors and partners are all embracing potential opportunities,” explained Elisabeth Rainge, research VP for Communications Service Provider Operations at IDC. “Network virtualization for telecom represents some significant challenges, but the upside is extremely high. And, while not everyone will reap the benefits of this profound sea change (e.g., entrenched telecom equipment manufacturers), IDC sees an evolution of infrastructure that is already underway.”
NFV
The firm explained that industry moves towards such technologies as voice over LTE will “catalyze” the push towards NFV and SDN, however network quality issues related to such virtualization remain to be tackled.
“With the talk of moving away from a ‘5-9s’ model in the name of service agility and flexibility, it remains to be seen whether and how NFV and SDN can ensure faster deployment while maintaining high standards of quality of experience,” added Sathya Atreyam , research manager for Wireless Network Infrastructure at IDC.
IDC did cite the growing number of vendor announcements during the first half of the year related to network virtualization, but added that the long-term vision for SDN and NFV into telecom networks makes discerning a clear picture of the potential impact difficult to attain.
One report from Maravedis-Rethink found that nearly three-fourth of mobile operators plan to deploy some form of network functions virtualization by 2018, noting the move to NFV will be one of the most important ways carriers will “transform their cost base and their service delivery in the next few years.” However, the firm cautions that hurdles will need to be overcome for carriers to realize the full potential of NFV.
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