Network Functions Virtualization (NFV) is a movement that started in October 2012 and is being driven by the telecommunications service provider (SP) community.  NFV enables certain network functions to be consolidated and performed on standard IT virtualization technology rather than on specialized, dedicated networking equipment.  The vision of NFV is to dramatically change how networks are architected and operated in the future.

The objectives of NFV were developed to counteract financial and competitive pressures. From a financial perspective, SPs seek to reduce capital expenditures and operational expenses plus grow service revenue.  NFV will also change the way vendors generate revenue for network equipment.  NFV will lead to a product pricing structure that has a significant software component.  Vendor revenue will shift from a hardware-based shipment model to software license deferred model

Our NFV Report strives to track progress across a broad range of technologies and to highlight the emerging trends and developments of this rapidly changing movement, such as addressing the recent emergence of carrier software defined networking. We believe that NFV is part of a long-term evolution of telecom operator networks and businesses. We take a take a holistic view of how technologies, operations, and business models are evolving on the path to creating a complete NFV platform.

Our senior analysts collaborate to combine their deep understanding of network equipment markets to assess what is driving decisions for NFV development, adoption, and deployment.

The Report answers such questions as:

  • Will open source be used for NFV products?
  • What are the important technologies for NFV?
  • What are the long-term financial implications for SP capital expenditures, operation expenses, and revenue?
  • When will NFV have a material impact for SPs and equipment manufacturers?
  • How can equipment manufacturers generate revenue from blending traditional network equipment with virtualization software?

Our Report also includes quantitative tables on the worldwide NFV market and worldwide mobile and broadband subscribers.