Verizon, AT&T Roll Out Network Services On Demand
The first services the carrier is offering through Network Functions on Demand are virtual routing from Juniper, Cisco's virtual router, Fortinet's virtual security and Riverbed's virtual WAN optimization technology. AT&T is making the service available in 76 countries and territories worldwide. The new virtual network services are part of larger efforts by Verizon and AT&T to embrace a software-centric approach in their own network infrastructures. Verizon started to transform its network in 2009 by offering bandwidth on demand, and last year announced it was adopting SDN for its network. Full-scale SDN deployment is scheduled for 2017 and 2018. AT&T officials expect that by 2020, 75 percent of its network will be virtualized. Since launching Network on Demand last year, more than 1,200 businesses have adopted solutions from the platform, officials said."The service provider NFV market is larger than the software-defined networking market throughout our forecast horizon of 2020, due to the pre-existing and ongoing VNF market," Howard said in a statement. "We expect strong growth in NFV markets in 2020 and beyond, driven by service providers' desire for service agility and operational efficiency."
The NFV market is expected to grow quickly in the coming years, according to analysts with market research firm IHS. In a report his month, the analysts said that between 2015 and 2020, the service provider NFV space will grow at an average of 42 percent per year, from $2.7 billion last year to $15.5 billion in 2020. The primary value of NFV is in the VNFs, according to Michael Howard, senior research director of carrier networks at IHS.