Facing unprecedented traffic and rapidly evolving customer expectations, global telecom providers are accelerating their adoption of Network Functions Virtualization (NFV) to increase network agility and mitigate costs, according to a report from OpenStack Foundation. The adoption of NFV is considered to be in its early stages, but the NFV market is projected to grow dramatically.
Telecom providers are the driving force behind the development of NFV technology, which leverages cloud computing, software and automation for networking infrastructure, according to the Foundation. NFV promises to expand the portfolio of revenue-producing services and reduce CapEx and OpEx burdens.
Research firm, Infonetics Research forecasts a fivefold increase in the NFV market, reaching $11.6 billion by 2019. Another research firm, SNS Research estimates a compound annual growth rate of 54 percent for the segment between 2015 and 2020.
Already, numerous global telecom leaders such as AT&T, Bloomberg LP, China Mobile, Deutsche Telekom, NTT Group, SK Telekom and Verizon have deployed its solution, OpenStack for NFV implementation, said the Foundation.