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Date: 01-12-16

virtual spending to exceed physical networks by 2019, says ABI

ABI Research forecasts that NFV spending for the virtual mobile packet core, which includes the Virtual Evolved Packet Core (vEPC) and virtual IP Multimedia Subsystem (vIMS), will exceed that of that of physical network functions by 2019, topping $8 billion by 2021.

Network functions virtualization (NFV) is an initiative to virtualize the network services that are now being carried out by proprietary, dedicated hardware. If successful, NFV will decrease the amount of proprietary hardware that's needed to launch and operate network services.

The continual development of NFV(network function virtualization) technology brings a great relief to many operators looking for economical and flexible expanding approach for next generation network applications.

The extended network footprint supports a much larger number of users and businesses than ever before. This necessitates a giant leap into the virtualized core market to accommodate current and future network operations cost effectively.

By virtualizing evolved packet core (EPC) functionality, mobile providers can theoretically customize networks to meet the unique requirements of individual customers, mixing and matching individual network components as needed. vEPC can also lower Capex and Opex by reducing reliance on specialized hardware, while speeding service delivery and allowing for on-demand scalability and responding to real-time network conditions and user needs.

"The vEPC will support business strategies for emerging IoT applications and help handle the significant amount of mobile traffic from operators vertical market partners.Given how essential vEPC functions will be to the connected world, the demand for them will continue to increase, creating the largest segment of the core market, which grows at a CAGR of 54% ",as said by Ali Senior Analyst at ABI Research.

ABI Research finds that operators in developing markets will also take full advantage of matured virtualized core elements to accelerate their 4G rollouts and compensate for slower network expansions.

The rising adoption of VoLTE and Wi-Fi calling solutions also fuels the need for a virtual IMS and core network functions that deliver real-time communications services for consumer and business users over any accomadation.

News Source: ABI

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