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Software-controlled networking: worldwide forecast 2016–2020

Software-controlled networking: worldwide forecast 2016–2020

Management Report
Published: November 2016
Pages: 61 slides
Research from: Analysys Mason
Sector: Networks & Infrastructure

From: GBP 6153.00
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"Total spending in the cloud computing, network function virtualisation and software-defined networking markets will grow from USD7 billion in 2015 to USD28 billion in 2020, at a CAGR of 32%."


Communications service providers (CSPs) have the difficult job of balancing tactical and strategic business goals, maintaining their relevance in an increasingly cloud-based ICT world, and assessing initial software-controlled networking (SCN) successes and frustrations. Meanwhile, network function virtualisaton (NFV) continues to drive SCN market spending; enterprise and cloud services push software-defined networking (SDN) spending ahead; and cloud computing spend remains steady.


This forecast report provides:

This report provides a 5-year forecast of spending split into:

three technology types: cloud computing by CSPs, NFV by CSPs, and SDN by CSPs

three revenue types: hardware, software and services (with further sub-segmentation)

four geographical regions: Asia–Pacific (APAC); Europe, the Middle East and Africa (EMEA); Latin America (LATAM) and North America (NA)

an analysis of the trends, drivers and inhibitors for the adoption of these technologies, plus changes in our assumptions since our previous forecast update (published in September 2015)

analysis of the business environment and regional dynamics that will influence the SCN market

a detailed market definition

recommendations for CSPs and suppliers (vendors and systems integrators).


Key Questions answered in this report


§ What are the drivers and inhibitors of SCN solution and service growth?

§ What is the business environment that is creating the need for SCNs?

§ What are the key changes in the SCN markets compared to our previous forecast?

§ Which segments and regions are growing the fastest and why?

§ What are the sub-segments of the software revenue opportunity, and which are likely to offer the best growth?

§ What is driving CSPs’ willingness to buy SNC



Who Needs to Read this report


§ SCN vendor product managers and business development managers who need an independent third-party view of market opportunity size and timing.

§ CSP planning and operations staff eager to gauge the progress of the SCN market by spending type, region, and technology for comparison to their own situation.





§ NFV spending in 2015 ended slightly below our previous estimate, but our outlook for 2019 is up 40%. based on strong software and services prospects, particularly from 2018 onwards.

§ SDN spending is being driven by SD-WAN and similar service-led deployments. CSP SDN in the WAN1is emerging as a ‘next-gen NMS’.

§ Cloud computing growth comes from CSP cloudifying IT processes and investing to support analytics-enabled automation and IoT.


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