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Software-controlled networking: worldwide forecast 2016–2020

Dana Cooperson Research Director
Caroline Chappell Research Director
Gorkem Yigit Senior Analyst, Research

"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%."

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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 virtualisation (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).