Operators’ Service Delivery Platforms Migrating toward SDN

SDN software for use in live operator deployments will grow from a global total of just under $100 million in 2015 to $1.95 billion in 2019

GILBERT, ARIZONA, USA, October 13, 2015 /EINPresswire.com/ -- ACG Research has released its 2019 forecast for Software-Defined Networking² software and SDN enabled infrastructure purchased for use in service provider wide area networks. Segments included are IP/MPLS, Ethernet and optical platforms for use in service providers’ metro, edge and core network areas. ACG Research provides market share and forecast analysis in the service provider infrastructure space, business modeling and key performance indicators consulting services, service creation, strategic messaging and go-to-market strategies in all aspects of the networking industry.

Purchases of SDN software, including controllers and value-adding applications such as path computation and traffic analysis modules, are expected to grow at a compound rate of 84 percent during the period. Purchases of SDN software for use in live operator deployments (including trials, pilots and production service offerings) will grow from a worldwide total of just under $100 million in 2015 to $1.95 billion in 2019. In parallel revenue for sales of SDN enabled IP, Ethernet and optical networking products being used in live SDN deployments in operators’ WANs will grow at a rate of 53 percent from a total of $803 million in 2015 to $10.4 billion in 2019. Live SDN deployments are a subset of the total sales of platforms that are SDN ready (have the capability of being used in an SDN driven deployment) but which have not yet had their SDN features turned on for active use.

“Uptake of SDN is being driven by operators’ drive to dramatically simplify operations, optimize network infrastructures, and accelerate delivery of new and differentiated services throughout their portfolios,” said Paul Parker-Johnson¹, practice lead for cloud and virtual system infrastructures at ACG. “Use of SDN is beginning in tightly scoped deployments in areas such as business VPNs, data center interconnects, and intelligent transport management for broadband service deliveries. As confidence in solutions grows, and solutions mature, they will become the foundation for more comprehensive service delivery platforms³ for the operators.”

The IP/MPLS edge of operator networks is receiving slightly more investment during early stage SDN deployments, commanding 40 percent of operators’ purchases. Core and metro solutions are receiving slightly lower levels of investment, at 33 percent and 27 percent of total market, respectively. By 2019 ACG expects each segment to be commanding equal 33 percent portions of the $12.3 billion total worldwide market for live SDN deployments.

For more information about ACG’s report or to speak to the analyst, contact info@acgcc.com.

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¹ http://acgcc.com/service/paul-parker-johnson/
² http://acgcc.com/service/software-defined-networking/
³ http://acgcc.com/business-case-for-a-common-nfv-platform/