network functions virtualization (nfv) - cloud and saas outlook (2016-20)

Network Functions Virtualization (NFV) Market - Outlook (2016-20) for Cloud and SaaS

[email protected]+1-408-469-4380

+91-80-6134-1500www.researchfox.com

1

ResearchFox Consulting is an Indian market research and consulting firm based in Bangalore. We strive to provide our clients with research data and reports which they can trust and analyze. Insights gleaned from our detailed and comprehensive research reports helps our clients stay ahead of trends. ResearchFox serves clients with services from data collection to analysis and reports. ResearchFox has extensive sector expertise and its consultants are abreast of global trends and issues across industries. Our areas of expertise include Manufacturing, IT, FMCG, Healthcare, Automotive, Government Sector and NGO, BFSI and Retail.

Disclaimer :This report is furnished to the recipient for information purposes only. Each recipient should conduct their own investigation and analysis of any such information contained in this report. No recipient is entitled to rely on the work of ResearchFox Consulting Pvt.Ltd. contained in this report for any purpose. ResearchFox Consulting Pvt. Ltd. makes no representations or warranties regarding the accuracy or completeness of such information and expressly disclaims any and all liabilities based on such information or on omissions therefrom. The recipient must not reproduce, disclose or distribute the information contained herein without the express prior written consent of ResearchFox Consulting Pvt.Ltd.

Copyright © 2015. ResearchFox Consulting Private Limited

2

Tableof Contents

1. Introduction1.1. Report Description1.2. Objective1.3. Scope of the Research1.4. Regions Covered1.5. Key Takeaways1.6. Key Stakeholders1.7. Key Terminologies1.8. List of Abbreviations

2. Executive Summary2.1. Executive Overview

3. Research and Forecasting3.1. Research Methodology3.2. Forecasting Methodology

4. Industry Landscape4.1. Market Size and Growth4.2. Competitive Landscape4.3. Market Share4.4. Company Classification4.5. Region Outlook4.6. Market Metrics4.7. Porter's Five Forces Model4.8. Key Drivers Analysis4.9. Key Constraints Analysis4.10. Key Opportunities Identified4.11. Key Challenges Identified

5. Market Segmentation5.1. Customer Segment 5.1.1. Cloud and SaaS

5.1.1.1. Market Size and Forecasting 5.1.1.2. Key Drivers Analysis 5.1.1.3. Key Constraints Analysis 5.1.1.4. Key Opportunities Identified 5.1.1.5. Key Challenges Identified 5.1.1.6. Sub Segments

5.1.1.6.1. Region : North America 5.1.1.6.2. Region : Europe 5.1.1.6.3. Region : ROW

3

dfgfd dfgfdh dfgfh dfhgf

Introduction 01 4

1. Introduction

1.1. Report Description

As, the need for NFV is growing in developed countries like North America and Europe, enterprises are the major adopters of NFV and benefited with reduction in operation cost and improve the performance and efficiency.

Technical advancements and improved application for networking allowed the network function to go virtual, with the introduction of cloud infrastructure has helped the mid-size and small business to adopt cloud based NFV. This report presents interpretative and easy-to-understand facts on how the current NFV market is segmented based on End Users, customer segment and geographies. It cuts through several facets of the NFV market such as market size, market share for each segment, the drivers and constraints of NFV marketplace. Report also provides information on the challenges and opportunities that lie ahead for these NFV Applications.

1.2. Objective

1. To understand the Network Function Virtualization(NFV) market across the globe by addressing the challenges faced by the industry with regards to adoption of NFV.2. To estimate the present size of the NFV market and to forecast its future values.3. 4. Realize how drivers, constraints, opportunities and challenges would impact various business functions across regions.

1.3. Scope of the Research

Scope of the research was limited to understanding the market share across segments. Key drivers, constraints and challenges along with their impact on various business functions in both short term and long term were addressed. Segmentations and forecasting were done based on:1. End Users2. Customer segment and3. Region based segmentation.

1.4. Regions Covered

1. North America (USA, Canada and Mexico)2. Europe ( Uk, Italy, France, Germany and others)3. ROW(South America, APAC , Middle East and other countries).

1.5. Key Takeaways

The research conducted to understand Network Function Virtualization (NFV) markets in different regions of the globe have revealed some valuable insights. Some of the key take away points involve information given below:

1.

5

North America has the highest market share whereas Europe is growing at a good pace.2. The market share of Network Function Virtualization(NFV) market is over USD 292.0 million in 2015 and growing at an impressive CAGR of over 53.81%.3. Enterprises are adopting Network Function Virtualization(NFV) more compared to Mid Size and Small Businesses.4. Telcos are the more adoptors of NFV in order to provide better service to their customers.

1.6. Key Stakeholders

1. NFV providers: Network Function Virtualization (NFV) providers will be able to assess the market mood and accordingly develop applications as per the changing requirements of customers.2. Global Investors: Those investors who look to fund new and budding Network Function Virtualization(NFV) startups will get clearer picture about the market and its trends.3. Industry Watchers: Industry and trend watchers are always referred to as trusted advisors who follow markets. The report would add to their knowledge repository, creating value for their know-how.4. Network Function Virtualization (NFV) providers across the different regions.

6

1.7. Key Terminologies

1. NFV: is a network architecture concept that proposes using IT virtualization related technologies to virtualize entire classes of network node functions into building blocks that may be connected, or chained, to create communication services.2. Virtual Private Network (VPN): VPN is a private network across a public network, such as internet. It enables network enabled devices to send and receive data across public networks.3. North America: North America includes the countries - USA (United States of America), Canada and Mexico.4. Europe: Europe includes countries - UK (United Kingdom), France, Italy, Germany and Spain.5. APAC (Asia Pacific): Asia Pacific includes countries - India, China, Japan, Philippines, and Australia.6. South America: South America includes the countries - (Brazil, Argentina and Colombia)7. Rest of World (ROW): Rest of World includes Middle East and Africa, Russia and other countries.

7

1.8. List of Abbreviations

1. NFV: Network Function Virtualization2. NEP's: Network Equipment Providers.3. ISV's: Independent Software Providers.4. ETSI: European Telecommunications Standards Institute.5. CAPEX: Capital Expenditure.6. OPEX: Operating Expense.7. 4G: Fourth generation cellular Connectivity8. LTE: Long term evolution.9. TTM: Time-to-market10. SDN: Software Defined Network.11. SaaS: Software as a Service.12. POC: proof-of-concepts13. 3G: Third generation cellular network.14. CAGR: Compound Annual Growth Rate.

8


Executive Summary 02 9

2. Executive Summary

2.1. Executive Overview

Network Function Virtualization market is growing which is grabbing attention for some time now, with growing need to cut cost the operation cost has provided an optimistic picture to NFV market.

North America is home to some of the major virtualization companies and IT conglomerates like HP and Dell. While these companies have proved their mettle in virtualization, NFV offers to be a bridge between IT and CSPs. Cloud infrastructure in North America has seen greater adoption than its counterparts in rest of the world. A developed infrastructure is one of the advantages of this region. NFV on the other hand is all about emergence of technology into the telecom industry.

NFV has been doing the rounds ever since in European region. A governing body in European Telecommunications Standards Institute (ETSI) has been leading the issue of policy standardization for NFV along with other associations. However, the adoption of NFV here is yet to witness a surge.

A developed cloud infrastructure is already in place in major European regions thereby allowing telcos to utilize the same to build NFV. The factor of cloud integration with NFV will be a major booster for this region.

NFV in telcos across APAC is behind North America. However, companies here are looking up to their contemporaries in North America and Europe. Many NFV vendors have expressed that telecom vendors in APAC are excited about this technology and are handing out requests for information. With a number of projects in the pipeline, this region is expected to witness good number of adoptions in the years to come by. Rest of the world is yet to embrace NFV. Technology related discussions have been going on for quite some time now but nothing substantial has resulted from it. However, with a miniscule contribution to the overall market.

Dominated by Asia Pacific including Australia and New Zealand, the RoW regional segment will take some time before NFV gets into the mainstream mainly due to the need for acceptance of the technology coupled with the developed infrastructure necessary. However, with a lot of investments, PoCs in place, the Asia Pacific region will dominate the adoption in the years to come by.

Currently the Network Function Virtualization market is USD 292.0 million and expected to grow more at a CAGR of 53.81% till 2020.

10


Research and Forecasting 03 11

3.1. Research Methodology

Base Year: 2015Forecasting Period: 2016 - 2020

3.1.1. Sampling

The leading suppliers of each end-user product categories that were chosen to provide a larger representative sample.

Purposive unit sampling was adopted for every service segment such as verticals, regions, end-users and others. This was resorted to, in order to elicit the appropriate inputs with regard to the qualitative growth aspects of the market.

3.1.2. Secondary Research

The research methodology that was carried out was desk research through various journals, association reports, and in house database to build a knowledge base on various market service segments, product categories and industry trends.

Various fact based data was analyzed. Some of the sources included:

a. ResearchFox Knowledge Base:

Previous data on the market has been put through a rigorous and comprehensive analysis to analyze the current state.

b. Desk Research:

Industry reports, annual reports, press releases, webinars, journals and publication, independent rating agencies and government statistics.

3.1.3. Primary Research

Primary interviews were conducted among various stakeholders:

Product and service companiesMembers of associations and alliancesSubject Matter Experts and EvangelistsConsultants and Strategists

12

3.1.4. Industry Information

It was essential to understand the current industry landscape, market dynamics, security ecosystem and competitor metrics. To estimate the global market, Chief Experience Officers (CXOs), Marketing Heads, Sales Managers and product stakeholders were interviewed.

3.1.5. Technical Information

In addition to the interviews with leading participants for industry-related information, ResearchFox conducted interviews with Research and Development (R&D) and Design and Development teams to understand the current usage of the products by service type and also to find out the emerging trends. Finally, interviews with suppliers were conducted to cross check the validity of information and also to understand the emerging trends in the end-user segment. The detailed methodology for primary research is outlined below.

3.1.6. Primary Interview Questionnaire Design

ResearchFox developed a detailed questionnaire, which was used by the analysts as a guide for their discussions. This process ensured the collection of all necessary data. The questionnaire was designed to elicit unbiased industry level data (market size, production, sales, and others), that had check points (questions such as company level information and their position in the industry acted as check points) to ensure accuracy of the data. The questionnaire included the following sections:

1. Industry level information2. Characteristics and Dynamics3. Company-specific information4. Market segmentation data

3.1.7. Interview Questionnaire Test and Validation

Following the design of the questionnaire, ResearchFox carried out some initial interviews to verify that the appropriate market and technology data was generated. After the final design of the questionnaire, ResearchFox began full scale primary research. Specific companies targeted for primary research interviews were selected based upon market participation. Higher was the entity's profile, more attractive was the entity.

13

3.1.8. Interview Process

As participants respond in the course of an interview, ResearchFox analysts are trained to move from lower priority and/ or sensitive topics to increasingly key and/or sensitive topics in response to the interviewee's behavior. This responsive and reflective interview process, combined with the analysts' ability to discuss the industry and technical issues in an open and sharing environment, allows ResearchFox to probe for key data, operations, and competitive information. Multiple contacts within a single organization and with an individual are often planned and/or staged in order to optimize and complete the information gathering process.

3.1.9. Research Validation

At a point, when 20 percent of the research interviews and/or data collection had been completed, ResearchFox consultants evaluated the preliminary findings to assure that up-to-date results are in line with project objectives. The analyst team analyzed the information from the interviews and information was validated through a combination of the following validation techniques:

Cross checking with other primary data and previously developed in-house researchReview of secondary information, such as trade journals, annual reports and industry directories

14

3.2. Forecasting Methodology

3.2.1. Step-by-Step Methodology for Market Estimation and Forecasting

Market Estimation and Forecast Methodology, 2016

Step Method

1Understand the market mechanism for the market through structured, systematic and theoretically established norms of analyzing, designing, introducing and quality assurance of the market estimation

2 Measuring the various market drivers, constraints, opportunities and challenges at regular intervals of time

3 Integrate expert-opinion of discussions in consultation with the ResearchFox Analyst team

4 Market estimation and forecast calculation

5 Delphi method and Causal Analysis used as and when required

6Rigorous quality check with heads of Research Team, Subject Matter Experts and Consultants before final publication

Source: ResearchFox

Significance and Importance of the Market Forecast, 2016

Sr. No. Significance and Importance

1 Helps revisit on the company's R&D investments

2 Keeps the Sales and Marketing team posted on the market prospects

3 Strategize investment and expansion plans

4 Improve business planning

5 Helps create business aims and set sales figures within the company

6 Aware of the current market competition

7 Support plans for Merger and Acquisition (M&A)

Source: ResearchFox

15

About ResearchFoxWHAT WE STAND FOR

We strive towards helping our customers take informed decisions by providing different perspectives for business. We don't believe in flashing LOGOs but are proud to mention that we have been helping all sizes of businesses since our inception. We are glad to have contributed in our own little way towards making a business successful. Whether you are a start-up or a large enterprise, we assure equal treatment to all, after all "Customer is King"!

THE TEAM

We are a bunch of 25 people with handful of grey hair between us. Our humble experience of around 75 man years in market research and business consulting has led us to believe that this industry is ripe for disruption. With the advent of enterprise consumerization and rapid digitization across industries, days are numbered for traditional business models of market research and consulting services. We make all efforts to bring different (fresh) perspectives to Market, Competition, and Growth of your business.

Contact Us:

Suggest a Report Topic: Report topics are approved based on number of users with the same suggestion and users are notified when the topic is approved.If you prefer to customize a report, or would like to get your report done exclusively in less than a months time!

Bangalore# 4 & 5, 1st & 2nd Floor,1st Cross,Krishna Reddy Colony,Domlur Layout,Bangalore 560 071,India

Phone: +91-80-61-341500Email: [email protected]

Hyderabad# 104 & 105, 1st Floor,Bhuvana Towers,CMR Building,Sarojini Devi Road,Secunderabad 500 003,India


Pune6th Floor Pentagon P-2,Magarpatta City,Hadapsar,Pune 411 028,India


PhilippinesL29 Joy Nostalg Centre,17 ADB Avenue,Ortigas Center,Pasig City, Manila,Philippines - 1600

Email: [email protected]

The information contained here in is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

16

http://researchfox.com