In today’s world, most of the businesses are moving towards digitization. Presence and advancement of telecommunication technology is proving to be a catalyst in this process of digitization. However, the high costs involved in procuring, implementing and managing of the telecom infrastructure is proving to be a real dampener. With limited budgets, businesses find it really hard to invest heavily in equipping themselves with costly telecom equipment. The expanding businesses and the growth in telecom networks of companies is forcing them to dedicate a major chunk of their budgets towards building bigger network infrastructure. To counter this, many of the businesses are now actively in search of innovative telecom technologies that can scale down their network infrastructure investment woes.

Network Functions Virtualization is one such emerging technology that promises to address several of such issues involved in using traditional IT & Telecom infrastructure. The technology that originated somewhere around 2011 is now catching the limelight due to the increased demand for more faster, efficient and cost effective telecommunication networks. NFV technology, if successful, is expected to considerably reduce the amount of hardware that is presently needed to operate network services.

NFV is emerging to simplify the network functions and would eventually help in scaling up of telecom infrastructure. With growing demand for fast and flexible networks and with growing concern for high initial investments, businesses are expected to start actively adopting the NFV model of network services.

Businesses are now realizing the advantages of implementing NFV technology over the traditional hardware based networks and this is expected to affect positively on the growth of NFV technology and market in the near future.

Network Functions Virtualization (NFV) Market Growing Rapidly With growing demand for reduction of CAPEX and OPEX costs related to telecom infrastructure and increased need for speed and flexibility in communication processes, solutions like Network Functions Virtualization is expected to flourish further. The emergence of virtualization along with the growing cloud technology is expected to further leverage the market.

NFV Technology - A hit among North American businesses; Europe-Still an emerging market North America is home to some of the major virtualization companies and IT conglomerates. While these companies have proved their mettle in virtualization, NFV offers to be a bridge between IT and CSPs.

Simultaneously, cloud infrastructure in North America has seen greater adoption than other regions in the world. A mature telecom infrastructure, growing need for cost effective solutions and increased demand for mature telecom technologies is driving the growth of NFV technology in North America. On the other hand, Europe is still comparably new market and is expected to record faster adoption rate in the coming years.

Also, with involvement of telecom giants like NTT Japan, NFV is expected to achieve great leap in AsiaPacific regions. Experts believe that countries like Japan and China would see some active adoption at the start of the year 2016.

Enterprise Businesses, especially Telecom companies are the biggest consumers of NFV solutions Enterprise level telecom companies have emerged as the biggest consumers of the technology due to the high initial investments required in traditional models. Telecom companies can reduce their capital and operational costs along with limited power consumption. It also allows them to deploy the new network services in no time with the greater flexibility of scaling up as and when required. On the flip side, even the cloud service providers and SaaS providers are increasing their adoption of these services due to the same reasons as that of the telecom companies.

The Underlying Challenges As the NFV technology is gaining traction, there are few challenges that needs to be addressed. Firstly, NFV technology is comparably new and it would be a herculean task for the solution providers to convince the customers from switching from the existing conventional solutions to this technology. Also, the technology demands the presence of skilled workforce who have expertise in managing the processes and currently, the industry lacks the necessary trained workforce. Development of an open stack community that can combine other emerging and existing technologies with NFV would help in developing better NFV solutions in the future.