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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


Sample of Responding Companies


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


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


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)


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



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



“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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