J’son & Partners Consulting presents brief results of the research: New trends in mobile communication: Network functions virtualization (NFV) and Software-defined Networking (SDN), which includes survey of the largest Russian telecom operators and their plans on SDN and NFV implementation on commercial networks.
SDN/NFV IN RUSSIA
In August-September 2014 the major part of surveyed mobile and fixed communication operators (over 70%) were on the stage of research and analysis of SDN and NFV opportunities. Half of the operators are testing these technologies.
Terms for implementation of technologies on the commercial operators' networks
The prevailing part of surveyed Russian operators consider that the implementation of SDN/NFV technologies on commercial network will happen in 2-3 years during 2016 – 2017, around 7% of respondents expect this in 2015 and 29% - cannot estimate.
Network's segments, where first implementation of SDN/NVF more likely to be expected
Major part of surveyed operators couldn’t name part of the network or infrastructure, where first implementations can be expected. Those, who answered, marked that it will more likely be in: package EPC core, IMS, trunk transport network segments (forecast for NFV implementation in the network domain) and in operators' DPCs.
SDN/NFV Development Drivers
70% of the surveyed operators have named the cut of terms for network's modernization (because of simplified network's infrastructure) - a key development driver for SDN/NFV. Almost 2/3 of the surveyed respondents also called the decreased OPEX among 3 key drivers.
Half of respondents called the lack of informational awareness of market participants and lack of industry standards on SDN/NFV markets – key deterrent factors. According to the representative of one of the operators, lack of information awareness – factor, which brings all the others, as this is the key barrier for SDN/NFV implementation.
Other factors include the following: unproved economic effectiveness, not readiness of vendors and risks of networks' security decrease.
As of September 2014 – Russian operators are planning or already have tested SDN on their networks. According J’son & Partners estimations optimistic scenario – the first implementation on commercial network can be expected within the next year, more realistic scenario – in 2-3 years. NFV concept is still less “ready” and operators are waiting for successful cases on the global market. Lack of information awareness about technologies is a key barrier for SDN/NFV implementation.
Detailed results of the Research are presented in the full version of the Report: New trends in mobile communication: Network functions virtualization (NFV) and Software-defined Networking (SDN)
1. Prerequisite for SDN development
2. Definition of SDN, NFV and SDN concept and architecture
3. SDN standardization
4. SDN market structure
5. Key drivers and constraining factors of NVF and SDN development
5.1.1. Networks infrastructure simplifying
5.1.2. Lowering capital and operational expenditures
5.1.3. Time frame for new services’ implementation
5.2. Deterrent factors
6. Key Market Players – SDN
7. Several implementation projects of NFV and SDN in the world
8. Perspectives for implementation in Russia (results of the survey)
9. Transit to SDN/NFV strategy
10. Vendors’ solutions and transit on SDN strategy
10.7. Citrix Systems
10.12. Pluribus Networks
10.16. Juniper Networks
LIST OF FIGURES:
Figure 1. ArchitectureSDN
Figure 2. Examples of managed services with SDN and NFV
Figure 3. Architecture of cloud radio access network (C-RAN)
Figure 4. SDN market structure in 2016
Figure 5. Decrease in capital expenditures – C-RAN implementation, %, China Mobile case
Figure 6. Decrease in total networks’ cost (ownership), %
Figure 7. SDN market players’ ecosystem
Figure 8. SDN-network by NTT operator
Figure 9. SDN|NFV status in Russia
Figure 10. Implementation terms - SDN|NFV based on operators’ commercial network
Figure 11. TOP-3 development drivers for SDN/NFV
Figure 12. TOP-3 deterrent factors for SDN/NFV development
Figure 13. Architecture levels, covered by Cisco ONE
Figure 14. Cisco Evolved Services Platform structure
Figure 15. vEPC NEC
Figure 16. IBM SDN platform for Virtual Environments
Figure 17. Networks’ evolution to NFV
Figure 18. NFV-solution Nokia, MWC 2014
Figure 19. Trial model scheme – Ciena
Figure 20. SDN Market, mln. USD, 2013-2016
Figure 21. SDN Market, bln. USD, 2013-2018
Figure 22. Share of expenses on SDN maintenance, %, 2013-2018
Figure 23. SDN market, 2012-2017
LIST OF TABLES:
Table 1. Operating expenses structure – BS operation activity
Table 2. Deterrent factors in networks and IT spheres
Table 3. NEC solutions in Carrier SDN sphere
List of companies mentioned in Report
This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.