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Washington, DC / London / Paris / Singapore
December 2014
SDN and NFV
Evolving Deployment Requirements and How to Benefit
Timely Insights Practical Advice
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Sample of Responding Companies
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2014 Results – Major Conclusions
Operator purchase motivations shifted away from OpEx savings to Revenue generation ETSI-
defined MANO and Open Source OS rated as least “ready” from commercial deployment
standpoint; confirms recent vendor messaging aimed at highlight advances
Lack of importance placed on adherence to ETSI indicates potential frustration with standards
definition process
Despite progress, concerns regarding tech maturity and business case/ROI remain
• Concerns about technology immaturity up from 2013
• Relative “lack” of concern about MANO prerequisites indicate that operators are still a ways off in executing
large scale MANO deployments
Financial stability vendor selection criteria; expect active M&A environment in 2015
In 2015 vendors need to message commercial readiness; majority of operator concern centers
on lingering issues related to technology development and/or business model
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Section 1: Demographics
19%
13%
68%
Respondents by Carrier Type
Fixed Line/MSO
Mobile
Integrated (Fixed/Mobile)
8%
41%35%
16%
Respondents by Company Size
Under $1 billion (USD)
$1- 9 billion (USD)
$10-$49 billion (USD)
>$50 billion (USD)
25%
25%25%
25%
Respondents by Region
North America
Europe
Middle East or Africa
Asia, including India or Australia
67%
33%
Respondents by Job Role
Corporate Executive
Network Planning
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36%
35%
29%
What is your company's primary driver for SDN/NFV Deployments
Support Existing Services Service Enablement Cost Savingsn=100
Section 2: Investment Drivers and Strategy Considerations
Support for revenue
generation has become a
main driver for SDN/NFV
adoption
Cost savings still main
driver for almost 1/3 of
respondents
CapEx savings losing
steam as primary driver
(20% in 2013 vs. 4% in
2014)
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Section 4: Vendor Considerations
Responses from large
vendors largely mirror
the field…
…However, Huawei tops
perception in this group
(2nd when all SP groups
considered)
n=100n=100
4.13
1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50
Alcatel-Lucent
Dell
Juniper
Cisco
Huawei
SDN and/or NFV Supplier Perception – Large SPs
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Section 4: Vendor Considerations
Major split across top-tier
and rest of market:
outside top five vendors,
“unlikely to buy” ratio
was 50% or greater
Purchase decisions align
with perceptions (IP Telco
vendors still on top)
n=100
76% 15% 9%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Nokia
Juniper
Cisco
Alcatel-Lucent
Huawei
Likelihood of purchasing SDN/NFV solutions from
Likely Already Purchasing Unlikely
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Section 4: Vendor Considerations
“Gains” in likelihood to
buy indicate that
operators are closer to
making purchase
decisions
Average “gain” from
2013-14 = 7%
No vendors with “loss”
+/- one STDEV of mean
76%69%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Nokia
Juniper
Cisco
Alcatel-Lucent
Huawei
Likelihood of Buying SDN/NFV Solutions From... Trending (2013-14)
2014 2013
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