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Network Functions Virtualization: Making Progress, But Mainstream Implementations Still Years Away, According to Dell’Oro Group

Significant NFV Investments Being Made by Manufacturers and Service Providers


A new report published by Dell’Oro Group assesses the progress of the telecom industry’s Network Functions Virtualization or NFV movement as it enters its third year of existence. NFV enables telecom service providers to design and construct their networks using software virtualization and Cloud computing technologies commonly used by Internet content and web service providers such as Google, Facebook, and Amazon. The report analyzes the disruptive nature of NFV on the telecom industry, including potential effects on equipment manufacturers and network operators.

“It is exciting to see the energy around NFV with so many manufacturers and network operators pouring resources into developing NFV technologies,” said Shin Umeda Vice President at Dell’Oro Group and author of the report. “While much progress is being made across the NFV ecosystem, we think it will be several more years before large-scale implementations of NFV occur.”

Dell’Oro Group’s NFV Advanced Research Report assesses the NFV market over the next five years as it relates to telecom service providers and equipment vendors. The report includes a revenue forecast for NFV in selected technology segments and discusses the technology, business, and financial implications of this burgeoning technology.

Questions addressed in the Report include:

  • Will NFV cannibalize or compliment network equipment?
  • Which networking equipment markets will be affected by NFV?
  • Will open source be used for NFV products?
  • What are the important technologies for NFV?
  • What are the long-term financial implications for SP CAPEX, OPEX, and revenue?
  • When will NFV have a material impact for manufacturers and service providers?

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, service providers, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit

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