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CORRECTING and REPLACING Software Defined Networks and Large-Scale Network Virtualization Combine To Drive Change In Telecom Networks, IDC Says

2013-04-08

FRAMINGHAM, Mass. ---- Third graph, third sentence of release dated March 7, 2013 should read: Additional demand for hyperscale networking datacenters will be generated over time by CSPs like Verizon, AT&T, BT, Orange Business, NTT Com, SingTel, and Tata Communications. (sted NTT DATA).

The corrected release reads:

SOFTWARE DEFINED NETWORKS AND LARGE-SCALE NETWORK VIRTUALIZATION COMBINE TO DRIVE CHANGE IN TELECOM NETWORKS, IDC SAYS

Software-defined network (SDN) and large-scale network virtualization are two emerging telecom industry technologies that will combine to drive a more software-centric and programmable telecom infrastructure and services ecosystem. According to new research from International Data Corporation (IDC), these complementary and transformative technologies will have a sustained impact on today's communication service providers (CSPs) and the way they do business.

"IDC believes that the rapid global growth of data and video traffic across all networks, the increasing use of public and private cloud services, and the desire from consumers and enterprises for faster, more agile service and application delivery are driving the telecom markets toward an inevitable era of network virtualization," said Nav Chander, Research Manager, Telecom Services and Network Infrastructure, IDC. "SDN and large-scale network virtualization will become a game shifter, providing important building blocks for delivering future enterprise and hybrid, private, and public cloud services."

CSP networking of large data centers will be the first battleground for SDN. Networking datacenters employing SDN-based solutions will be driven by the requirements for hyperscale networked datacenters built by specialist cloud providers like Rackspace, Amazon, Google, and Microsoft. Additional demand for hyperscale networking datacenters will be generated over time by CSPs like Verizon, AT&T, BT, Orange Business, NTT Com, SingTel, and Tata Communications. Additionally, CSPs' ability to embrace new disruptive software platforms will enable multivendor network virtualization.

Major CSPs have recently joined forces to establish a new Network Functions Virtualization (NFV) group to specify a set of virtualized network functional requirements. The goal is to reduce the number of specialized and fragmented proprietary hardware-based network appliances or network elements and the requirement for a physical install per appliance per site. NFV is complementary to SDN and will be a standards-based framework to leverage standard IT virtualization technology in telecom infrastructure.

Additional findings from IDC's research include the following:

Time to service agility is a key driver for SDN concepts
Lowering OPEX spend is a bigger driver than lowering CAPEX for CSPs
Network Function Virtualization and SDN will emerge as key components of both CSPs service strategies and telecom networking vendor's product strategies

The IDC study, Will New SDN and Network Virtualization Technology Impact Telecom Networks? (IDC #239399), examines the rapidly emerging software-defined network (SDN) market, the developments in large-scale network virtualization, and a new Network Functions Virtualization ecosystem, which are likely to have an impact on telecom equipment vendors' and CSP customers' plans for next-generation wireline and wireless network infrastructure.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 49 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company.

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