A new report from Maravedis-Rethink predicts nearly three-fourth of mobile operators will 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.
“This figure has already risen from our previous estimate of 67%, made six months ago indicating the accelerating momentum behind NFV,” explained Caroline Gabriel, research director at Maravedis-Rethink and author of the research note. “This quickening pace of adoption reflects rising confidence in the platform, often as part of an SDN strategy and the urgent need for operators to reduce costs and deliver new services more quickly and responsively.”
In its report, “Pace of NFV uptake accelerates, despite many risks,” Maravedis-Rethink noted that carriers are targeting total cost of ownership savings of up to 35% over the next five years by the use of NFV, with savings coming from “key elements like the packet core.” The firm added that 16% of carriers it interviewed claimed NFV was a first step towards a broader software-defined networking policy that is expected to generate greater benefits.
Despite the potential upside, Maravedis-Rethink found that only 10% of carriers think cost savings associated with NFV would be worth the potential risk and disruption of such a bold virtualization move. Those risks include performance compromises compared to dedicated appliances; immature solutions; and skills availability. This uncertainty is expected to keep NFV adoption levels muted until at least 2016.
For more insight into the virtualization, NFV and SDN space please check out this recent report from RCR Wireless News on the topic.
RCR Wireless News also hosted a webinar on the topic.
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