Thursday, July 23, 2015

[IHS] Software is 80% of the $11.6B (on 2019) NFV Market

A new report by Michael Howard [pictured], senior research director for carrier networks, IHS forecasts that "the global network functions virtualization (NFV) hardware, software and services market to reach $11.6 billion in 2019, up from $2.3 billion in 2015. NFV represents operators’ shift from a hardware focus to software focus, and our forecasts show this. We believe NFV software will comprise over 80 percent of the $11.6 billion total NFV revenue in 2019 .. The software is always a much larger investment than the server, storage and switch hardware, representing about $4 of every $5 spent on NFV,” 

  • Service providers are still early in the long-term, 10- to 15-year transformation to virtualized networks
  • Revenue from outsourced services for NFV projects is projected to grow at a 71 percent compound annual growth rate (CAGR) from 2014 to 2019
  • Revenue from software-only video content delivery network (CDN) functions for managing and distributing data is forecast by IHS to grow 30-fold from 2015 to 2019
See "NFV Market to Grow More than 5-Fold Through 2019, Says IHS" - here.

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