New survey shows slippage in Virtualization plans

Communications service providers (CSPs) are almost universally committed to network virtualization, but their timetables for making the transition may be slipping a bit, according to results from the latest worldwide survey of CSPs conducted by Heavy Reading as part of its Future of Virtualization project.

The Future of Virtualization Indexes – part of Light Reading’s Virtuapedia initiative – track CSP progress in deploying virtualization and are based on direct input from more than three dozen CSPs worldwide. The indexes are intended to provide all CSPs with a set of clear benchmarks that can be used to measure their virtualization progress against that reported by a select group of the world’s leading network operators.

The vast majority of CSPs (96%) surveyed have identified at least some of the functions they plan to virtualize by 2020, and more than half of them have identified most or all of those functions. But the timetable to identify all functions to virtualize is slipping – only 23% of respondents in the latest survey said they would have all functions identified by the end of 2016. In an earlier survey conducted in November 2015, 38% of respondents said they expected to have all functions identified by the end of 2016.

Confidence in virtualization plans also appears to be falling slightly, although most CSPs remain upbeat about their ability to make the transition to virtualized networks and services. In the November 2015 survey, just over 22% of participating respondents said they were extremely confident that their company would meet its timetable for testing and deploying high-priority virtualized functions. In the May 2016 survey, the percentage of extremely confident respondents fell by nearly half, to just under 13%.

FoV fig 6

The top priority for CSP initiatives is virtualized network functions – suggesting that CSPs are taking a pragmatic approach and are starting with individual processes rather than large-scale initiatives. More than a third of the CSPs participating in the latest survey cited virtual network functions as their top priority over the next 24 months.

FoV fig 3

Concern about meeting deployment timetables appears to be prompting CSPs to ratchet up their spending on virtualization. In the latest survey, more than 60% of respondents said they expect their company to increase capex spending on virtualization by 10% or more in 2017. In the earlier survey, less than half the respondents said they expected that level of increase.

FoV fig 14

Participation in the Future of Virtualization Index survey is by invitation only. 40 different CSPs are represented in the latest survey, including Tier 1 CSPs from all major regions (Asia, CALA, EMEA and North America). Participating CSPs include a mix of wireline, mobile and cable providers, with the majority operating converged networks (wireline and wireless) with national footprints. Full results of the latest survey can be viewed at www.virtuapedia.com.

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