& cplSiteName &

Does SDN Mean 'Slowing Down Networking'?

Mitch Wagner
6/2/2014
50%
50%

Carriers are experiencing "SDN hesitation," becoming more cautious in their spending in the face of technology transformation, according to a report from Infonetics Research.

The "enormity" of the coming SDN and NFV transformation is slowing carriers down. Global service provider router and switch revenue increased only 2% year-over-year in the first quarter of 2014, down 14% in sequential quarters, the research company said. (See Defining SDN & NFV.)

The total size of the carrier router and switch market was $3.2 billion in the first quarter. It includes IP edge and core routers and carrier Ethernet switches.

"We believe the current generation of high-capacity edge and core routers can be nursed along" as each service provider works out "the detailed steps of the SDN-NFV transformation," Infonetics co-founder Michael Howard said in a press release. Carriers making these plans include AT&T, BT, Deutsche Telekom, Telefónica, NTT, China Telecom, and China Mobile. Carriers are also looking at content delivery networks and smart traffic management to allow routers and optical gear to cooperate more closely.

Other highlights from the report:

  • All major geographical regions are down from the prior quarter. This includes North America, EMEA, APAC, and CALA. All but North America are up year-over-year.
  • Juniper gained position in the router and Carrier Ethernet switch market, moving from third-ranked to second by revenue. Alcatel-Lucent also gained, rising to third. Huawei dropped to fourth place.
  • The top-ranked router and carrier Ethernet switch vendor? Cisco, of course.
  • "Infonetics is projecting five-year (2013–2018) CAGRs of 4.3% for edge routers, 2.9% for core routers, and 0.7% for Carrier Ethernet switches," the researchers say.

Related articles:

— Mitch Wagner, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profileFollow me on Facebook, West Coast Bureau Chief, Light Reading. Got a tip about SDN or NFV? Send it to wagner@lightreading.com.


Want to learn more about SDN and the transport network? Check out the agenda for Light Reading's Big Telecom Event (BTE), which will take place on June 17 and 18 at the Sheraton Chicago Hotel and Towers. The event combines the educational power of interactive conference sessions devised and hosted by Heavy Reading's experienced industry analysts with multi-vendor interoperability and proof-of-concept networking and application showcases. For more on the event, the topics, and the stellar service provider speaker lineup, see Telecommunication Luminaries to Discuss the Hottest Industry Trends at Light Reading's Big Telecom Event in June.


(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
6/3/2014 | 4:24:56 PM
Re: What happened?
sam masud - I'm hearing SDN is still in the proof-of-concept/pilot phase. We're not seeing production deployments just yet. 
sam masud
50%
50%
sam masud,
User Rank: Light Sabre
6/2/2014 | 2:48:39 PM
What happened?
Mitch,

I've seen estimates of multi-billion market for SDN/NFV. But now Infonetics is talking about "SDN hesitation." Infonetics squeamishness aside, are you hearing the same thing in your conversation with vendors/carriers?
Featured Video
From The Founder
Light Reading founder Steve Saunders talks with VMware's Shekar Ayyar, who explains why cloud architectures are becoming more distributed, what that means for workloads, and why telcos can still be significant cloud services players.
Flash Poll
Upcoming Live Events
June 26, 2018, Nice, France
September 12, 2018, Los Angeles, CA
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 17, 2018, Chicago, Illinois
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
What VeloCloud Cost VMware
Phil Harvey, US News Editor, 5/21/2018
TM Forum Sea-Change Overcomes That Sinking Feeling
Iain Morris, News Editor, 5/17/2018
Has AT&T Inked a Deal With Google for TV?
Mari Silbey, Senior Editor, Cable/Video, 5/18/2018
Verizon CEO Says LA Is Second 5G City
Dan Jones, Mobile Editor, 5/16/2018
Animals with Phones
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed