Digital Lifescapes

Telecom service providers in the Asia-Pacific region are actively virtualizing their network architecture. A flurry of new applications development is driven by open source communities -- such as OPNFV and ONAP -- as well as from individual efforts by telcos. According to the latest market study by ABI Research, the network function virtualization (NFV) market in the Asia-Pacific region will grow to $9.24 billion in 2022. NFV Market Development in Asia-Pacific Japan is the largest single market within the Asia-Pacific region, constituting 25.7 percent of the total NFV revenue. This is followed by South Korea and China, at 22.7 percent and 14.6 percent of the revenue growth respectively. "Japan leads in the region, not only because of the desire to design resilient and reliable networks in preparation for future disaster threats, but also to prepare for the 2020 Summer Olympics," said Lian Jye Su, senior analyst at ABI Research . South Korea and China are actively pr...

Cloud computing services supported by converged networks will create new opportunities for forward-looking senior executives to make informed decisions and gain significant new strategic competitive advantages. According to the latest market study by Frost & Sullivan, transaction data is the new currency for the digital enterprise and high-speed, dedicated and secure network connections are crucial for senior decision makers to monetize their commercial data residing in cloud services. Furthermore, an integrated network with cloud services will ensure a secured network to deliver business-critical applications and data to support executives in achieving their digital transformation agenda and related business outcomes. Converged Infrastructure Market Development Industry verticals, both traditional and emerging, are already investing heavily in integrated networks as part of their cloud-first journey to leverage next-generation technologies -- such as big data, analytics, a...

Open source hardware and software projects continue to gain momentum in the global telecom sector. However, after a relatively slow start, the Network Function Virtualization (NFV) market will experience growth through ongoing technology investments by major telecommunication service providers. According to the latest worldwide market study by ABI Research, North America will lead global growth, accumulating $13 billion in NFV-related investments during 2022. Meanwhile, Europe will experience the highest growth rate, at an estimated 53 percent CAGR between 2017 and 2022. NFV Technology Market Development Early adopters of the technology claim several benefits to NFV-enabled systems -- which include reductions in network CAPEX and OPEX, service agility, and reduced deployment times for new network elements. "In 2015 and 2016, the market experienced some early successes but mostly reconsideration and failure with NFV," says Neha Pachade, senior analyst at ABI Research ....

Wireless communications and mobile internet access over cellular networks continue to be an essential component of next-generation telecommunication system enhancements. While deployments of 4G network technologies are still occurring across the globe, plans are underway for 5G. That being said, 5G deployments indoors and in venues may be delayed by one year or more, when compared to outdoor 5G deployments starting from 2020. ABI Research estimates the global equipment market for in-building wireless -- including active distributed antenna systems (DAS), passive DAS, and repeaters -- will reach close to $10 billion by 2025. 5G Wireless Infrastructure Market Development The overall system revenue in 2025, which includes services and equipment, will grow at a CAGR of 15 percent to reach $19 billion in 2025. Out of this market, 5G in-building wireless equipment will account for $509 million in 2025. "As 5G nears full specification, mobile network operators will face challenge...

Enterprise networking vendors and telecommunication service providers encountered a series of challenges in 2016, as more customers shifted their focus from managing business technology investment to the strategic procurement of products and services related to digital transformation projects. That's why investments in fiber networks, 5G wireless, NFV and SDN will be critical for telecom service providers to keep pace with market demand over the next five years, as more CIOs integrate next-generation technologies into their IT environments, according to the latest market study by Technology Business Research (TBR). Enterprise IT Market Development IT services remained the largest enterprise segment in 3Q16, with combined revenue among benchmark companies rising 9 percent year-to-year to reach $11.7 billion due to growth in demand for Internet of Things (IoT), cloud computing and IT security. Furthermore, the divestment of Verizon and CenturyLink data centers illustrate that...

Many CIOs know they must respond to the growing demand for public cloud services within their organizations. Building a private cloud with on-premises infrastructure is a path to progress, and OpenStack is the software platform. The eighth User Survey conducted by the OpenStack Foundation demonstrates the maturity and broad adoption of the open source cloud platform, pointing to significant increases in the percentage of full production deployments. The results of the latest survey findings were released by the foundation leadership, along with a new survey dashboard , now in beta, and six global filter categories enabling anyone to perform their own analysis on the data. OpenStack Market Development Trends The market study is intended to enable a better understanding of user attitudes, organization profiles, use cases, and technology choices surrounding OpenStack deployments. Data is shared with the OpenStack community to help make design decisions and plan for the future dev...

Informed telecommunications service providers have reduced their infrastructure cost and improved their development agility by adopting open source software.  According to findings from a recent survey, 85.8 percent of telecom industry respondents consider OpenStack to be essential or important to their success. The survey, commissioned by the OpenStack Foundation, explores current usage and adoption plans of telecom service providers -- particularly with respect to Network Functions Virtualization (NFV), 5G cellular communications, Internet of Things (IoT) and enterprise cloud computing. Facing unprecedented traffic and rapidly evolving customer expectations, telecom providers worldwide are accelerating their adoption of NFV to increase network agility and mitigate costs, and OpenStack has emerged as the NFV infrastructure platform of choice. OpenStack Market Development Results The OpenStack survey included 113 responses from representatives of telecom companies around th...

Telecom service providers are embracing open source software and are moving beyond trial deployments. Moreover, they're seeking ways to free themselves from the technology constraints and associated costs of maintaining legacy networking equipment. Three-quarters of carriers participating in a survey of software-defined networking (SDN) technology demand say they've already deployed, or will deploy, in 2016 -- plus, 100 percent say they plan to deploy at some point in the future. Ongoing SDN Market Development The top drivers for service provider SDN investments are simplification and automation of network and service provisioning. Meanwhile, most operators are moving from initial SDN proof-of-concept evaluations to their first commercial deployments in 2016 and 2017. According to findings from the latest survey of carrier SDN strategies by IHS Markit , it’s clear that service providers around the globe are investing in SDN as part of a larger move to transform their in...

Traditional telecom networking equipment vendors have been preparing for the ongoing transition from hardware-centric business models of the past to a more software-oriented model. Meanwhile, the leading telecom service providers continue to adopt low-cost commodity hardware and open source software. According to the latest worldwide market study by IHS Markit , 100 percent of the telecom service providers participating in their recent survey say they will deploy Network Functions Virtualization (NFV) at some point, with 81 percent expecting to do so by 2017. Moreover, 59 percent of telecom network operator respondents have already deployed or will deploy NFV this year. However, integrating NFV into existing networks is an issue for a majority of survey respondents, as is the perceived lack of carrier-grade products. Regardless of these concerns, telecom service providers around the globe are rapidly moving toward NFV, which the latest study by IHS Markit bears out. NFV and SDN M...

The traditional carrier networking equipment sector has been awaiting a major transition, as telecom service providers sought a way to free themselves from the constraints of proprietary platforms. Open source software-defined networking (SDN) and network functions virtualization (NFV) hold the key to progress. According to the latest worldwide study by Technology Business Research (TBR), the NFV and SDN market will grow at a 116 percent CAGR from 2015 through 2021 to reach nearly $158 billion. Early adopters, such as AT&T, began to ramp up their investment in 2015 as open digital transformation became a top strategic priority. "A growing group of Tier 1 operators is leading the charge in implementing NFV and SDN. This group is driving a significant amount of development in the NFV and SDN ecosystem and is pushing the vendor community to rapidly adapt to this new architectural approach to networks," said Chris Antlitz, senior analyst at TBR . SDN and NFV Application...

The Telecom Infrastructure Services (TIS) market in North America will decline from $30.4 billion in 2015 to $27.4 billion in 2021 at a CAGR of -1.7 percent, according to the latest market study by Technology Business Research (TBR). Telecom network operators will shift their focus to software-mediated networks, specifically orchestration, automation, SDN and NFV. Fifth generation (5G) networks will begin to be deployed commercially in 2020, but ongoing rollouts will be use case-driven rather than a nationwide build-out like what occurred in previous generations of wireless technologies, providing little relief to the market. Software-Defined Networking Momentum Decommissioning of legacy infrastructure -- and the  implementation of NFV and SDN -- will accelerate the decline in the maintenance market. Telecom network operators are decommissioning legacy infrastructure, with Tier 1 service providers leading the charge to an all-IP environment. "The deployment and maintenance...

There once was a time when traditional telecom service provider networking vendors were gratified that their proprietary platforms ensured continued success. As long as carrier customers agreed to buy products that locked them into the market leader's technology and associated ecosystems, they were assured high-profit margins and limited competition. In fact, not that long ago, some industry analysts actually believed that Cisco could maintain 50%+ market share in several of their product categories, for an unlimited period of time. After all, they had already achieved that goal -- in some cases, for more than two decades. The market outlook seemed to be predictable, until one day it wasn't. Why Telecom Networking is Primed for Disruption For the past several years, the telecom industry has been moving toward a major network and operational transformation epitomized by software-defined networking (SDN) and network functions virtualization (NFV) with the top goals of autom...

The global telecom service provider Wi-Fi equipment market totaled $713 million in 2015. The market has grown consistently year-over-year since 2007, due to the ongoing deployment of Wi-Fi as a wireless internet access offering for public hotspots. Now, Wi-Fi growth in the telecom carrier realm is increasingly being driven by a diverse customer base and emerging technologies -- including Hotspot 2.0, 802.11ac and network functions virtualization (NFV), according to the latest worldwide market study by IHS . By 2020, the worldwide carrier Wi-Fi market is forecast to reach $1.5 billion, and have a cumulative size of over $6.8 billion from 2016 to 2020 based on two market segments: standalone Wi-Fi access points predominantly deployed by fixed-line operators, cable multiple system operators (MSOs) and wireless internet service providers (ISPs). Plus, dual-mode Wi-Fi and cellular access points deployed by mobile operators. Technology innovations continue to deliver positive impact...

Each new year brings a fresh set of industry and market predictions from the leading analysts. This year, the Internet of Things (IoT) is a hot topic. The Analysys Mason annual Technology, Media and Telecom (TMT) predictions reveal which trends will make an impact in the marketplace during the next 12 months. According to their assessment, telecom network operators and their suppliers must pay close attention to these 10 key trends for their decision-making during 2016 -- note, they are listed in order of significance. Top-Ten TMT Predictions for 2016 The contest for worldwide dominance in low-power, wide-area (LPWA) wireless networking technology will be confined to NarrowBand IoT (NB-IoT) and LoRa wide area networks for IoT. The most important M2M sector in 2016 will be connected cars – the number of connected vehicles will increase to over 150 million, with the largest network operators reaping the benefits. Google will decisively intervene in the communication services mar...

During 2015, across numerous industries, the quest for a competitive advantage via a Digital Transformation agenda has been a key focal point of strategic planning discussions between concerned CEOs and their executive leadership teams. Making bold moves and implementing big changes requires a huge concerted organizational effort. Besides, it can't be rushed. However, with their legacy business models already showing signs of imminent disruption, the leaders of major telecom service providers have been moved to action. Many have discovered that they're not adequately equipped to address the forward-looking view of their markets. So, they've now embarked on several momentous experiments -- intended to uncover the foundation for future success. According to the latest worldwide market study by Technology Business Research ( TBR ), the telecom service provider sector is entering the early commercial stage for Network Functions Virtualization (NFV) and Software Defined Net...

Around the world, many telecom service providers are in a state of transition, as their traditional voice and data communications service growth opportunities are either limited or in a decline. Meanwhile, the need to pursue new revenue opportunities has often been restricted by a historically slow moving organization and underlying infrastructure constraints that essentially made them inflexible to address the need to change. Therefore, during 2015, selective organizational restructuring and fundamental infrastructure transitions will be implemented to enable these telecom service providers to adapt more effectively to the apparent new opportunities in the marketplace. Much of the change will be driven by the deployment of new software, systems and related professional services from vendors with domain experience in managing these business model transitions. Adoption of next-generation technologies by telecom service providers has led to worldwide growth in the Operation Suppo...

According to the latest global market study by 4G Americas, Network Functions Virtualization (NFV) could help mobile network service providers deal with significant challenges facing the industry -- such as capacity limitations, increasing traffic diversity and the need to improve new service delivery agility. The mobile industry association has explored the considerations for planning NFV deployment, the advantages of the virtualized architecture and the potential challenges of LTE mobile network architectural changes. Their proposed strategies and solutions aim to address these issues and others by leveraging IT virtualization technology to consolidate many network equipment types onto industry standard high volume servers, networking and storage systems. NFV is about separating network functions from proprietary hardware and then consolidating and running those functions as virtualized applications on open-source commodity servers. When deployed, NFV will enable mobile carrier...

With profit margins under pressure, most telecom service providers are already considering dramatic cost reduction plans in the new year, such as the immediate adoption of open source software and the piloting of SDN or NFV projects. In particular, mobile service providers are most at risk. This is why they are in the process of evolving their business model -- primarily, in response to the latest global trends in mobile personal communications. Juniper Research has found that with combined annual mobile network operator expenditures now in excess of $800 billion, several leading service providers face the possibility of costs exceeding revenues by the end of the decade without remedial action. According to their latest worldwide market study, a combination of flat revenues from traditional services combined with surging data traffic costs could ultimately threaten the viability of all mobile network operations. In an analysis of 12 international mobile network operators, Juni...

Like any business that's investing heavily in new technology, telecom service providers must monitor their project ROI to determine if it has met the stated business outcome-related objectives. Now more than ever, project goals for bottom-line cost savings are aligned with equally important goals to enable top-line revenue growth. In fact, telecom service providers view the creation of new revenue, quicker time to revenue attainment, and service provisioning agility as their top drivers for investing in Software-Defined Networking (SDN) and Network Functions Virtualization (NFV) projects. Moreover, new research indicates some service providers have discovered that the business case for deploying SDN and NFV is marginal until the new revenue upside value is incorporated into the equation. According to the latest global market study by Infonetics Research,  there is now a significant growth opportunity for the leading vendors that offer NFV and SDN hardware or software that...

As we look toward 2015, we'll see signs that the mobile service provider sector will start to shift its investment budget into new technologies. The 4G Americas organization says Software-Defined Networking (SDN) and Network Functions Virtualization (NFV) each offer an opportunity for expanded network flexibility and capacity, while also enabling the reduction of operating and capital expenses. By utilizing more off-the-shelf bare metal hardware and open source-based software solutions, they're going to be in a much better position to revolutionize mobile networking infrastructure optimization. According to the latest global market study by ABI Research, the total worldwide wireless network operator capital investment (CAPEX) budget will increase by 5.9 percent by the end of 2014 -- that's a slower rate than 2013. The investment will reach $185.5 billion as large capital expenditure is expected in developing regions of Latin America, Africa, and Asia-Pacific. ABI Re...