According to the experts in the field of NFV, the whole idea behind the emergence of this technology was to provide simplified telecommunication functions to user, which are otherwise complex and tough to manage. Introduction of NFV is providing the necessary scaling of telecom infrastructure and also allowing the reduction of CAPEX and OPEX costs. Above all, the major driving force behind the growth of the technology is the great flexibility and speed that this solution is expected to provide. The market for Network Functions Virtualizations is slowly catching up and this report provides deep insights on how the market is expected to fare in the next five years. It also presents interpretative and easyto-understand facts on how the current market is segmented based on the geography, the end-user and the type of customers using it.

1. Network Functions Virtualization (NFV) Market - Outlook
(2017-21)
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3. Table
of Contents
5. Market Segmentation
5.1 . Region
North America
Europe
ROW
5.2 . End User
Enterprise
Mid Size
Small Business
5.3 . Customer Segment
Telco
Cloud and SaaS
6. List of Tables
7. List of Charts
1. Introduction
1.1. Report Description
1.2. Objective
1.3. Scope of the Research
1.4. Regions Covered
1.5. Key Takeaways
1.6. Key Stakeholders
1.7. Key Terminologies
1.8. List of Abbreviations
2. Executive Summary
2.1. Executive Overview
3. Research and Forecasting
3.1. Research Methodology
3.2. Forecasting Methodology
4. Industry Landscape
4.1. Market Size and Growth
4.2. Competitive Landscape
4.3. Market Share
4.4. Company Classification
4.5. Region Outlook
4.6. Market Metrics
4.7. Porter's Five Forces Model
4.8. Key Drivers Analysis
4.9. Key Constraints Analysis
4.10. Key Opportunities Identified
4.11. Key Challenges Identified
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4. List of Tables
Table 1: Market Estimation and Forecast Methodology, 2016
Table 2: Significance and Importance of the Market Forecast, 2016
Table 3: Market Size and Forecasting, 2017-2021
Table 4: Market Share, 2016
Table 5: Market Metrics
Table 6: Competitive Landscape, 2016
Table 7: Market Drivers Ranked in Order of Impact, 2017-2021
Table 8: Impact of Top Industry Drivers on Business Functions, 2017-2021
Table 9: Market Constraints Ranked in Order of Impact, 2017-2021
Table 10: Impact of Top Industry Constraints on Business Functions, 2017-2021
Table 11: Market Opportunities Ranked in Order of Impact, 2017-2021
Table 12: Impact of Top Industry Opportunities on Business Functions, 2017-2021
Table 13: Market Challenges Ranked in Order of Impact, 2017-2021
Table 14: Impact of Top Industry Challenges on Business Functions, 2017-2021
Table 15: Market Size & Forecasting of North America, 2017-2021
Table 16: Market Size & Forecasting of Europe, 2017-2021
Table 17: Market Size & Forecasting of ROW, 2017-2021
Table 18: Market Size & Forecasting of Enterprise, 2017-2021
Table 19: Market Size & Forecasting of Mid Size, 2017-2021
Table 20: Market Size & Forecasting of Small Business, 2017-2021
Table 21: Market Size & Forecasting of Telco, 2017-2021
Table 22: Market Size & Forecasting of Cloud and SaaS , 2017-2021
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5. List of Charts
Chart 1: Market Size and Forecasting, 2017-2021
Chart 2: Region Outlook, 2016
Chart 3: Market Size & Forecasting of North America, 2017-2021
Chart 4: Market Size & Forecasting of Europe, 2017-2021
Chart 5: Market Size & Forecasting of ROW, 2017-2021
Chart 6: Market Size & Forecasting of Enterprise, 2017-2021
Chart 7: Market Size & Forecasting of Mid Size, 2017-2021
Chart 8: Market Size & Forecasting of Small Business, 2017-2021
Chart 9: Market Size & Forecasting of Telco, 2017-2021
Chart 10: Market Size & Forecasting of Cloud and SaaS , 2017-2021
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Introduction 01 6

7. 1. Introduction
1.1. Report Description
Growing need for digitization and telecommunication technology advancement is changing the way the
telecom companies of the world operate. While the demand for advanced telecommunication
infrastructure is propelling the telecom industry to do more, the existing telecom infrastructure and the
operational costs involved in managing and maintaining them has turned out to be a painstaking process.
The telecom companies are now facing the challenge of providing quality services to their customers at
optimized costs and at the same time see that this would not create additional burden to them as a
company. Advent of virtualization technology has to a large extent solved the problem faced by the telecom
companies. With the introduction of Network Functions Virtualization (NFV) technology, telecom companies
have been able to minimize the high telecom infrastructure investment costs to the end users and
simultaneously have been able to provide quality communication services.
According to the experts in the field of NFV, the whole idea behind the emergence of this technology was to
provide simplified telecommunication functions to user, which are otherwise complex and tough to
manage. Introduction of NFV is providing the necessary scaling of telecom infrastructure and also allowing
the reduction of CAPEX and OPEX costs. Above all, the major driving force behind the growth of the
technology is the great flexibility and speed that this solution is expected to provide.
The market for Network Functions Virtualizations is slowly catching up and this report provides deep
insights on how the market is expected to fare in the next five years. It also presents interpretative and easy-
to-understand facts on how the current market is segmented based on the geography, the end-user and the
type of customers using it.
1.2. Objective
1. To understand the Network Function Virtualization(NFV) market across the globe by addressing the
challenges faced by the industry with regards to adoption of NFV.
2. To estimate the present size of the NFV market and to forecast its future values.
3. Realize how drivers, constraints, opportunities and challenges would impact various business functions
across regions.
1.3. Scope of the Research
Scope of the research was limited to understanding the market share across segments. Key drivers,
constraints and challenges along with their impact on various business functions in both short term and
long term were addressed. Segmentations and forecasting were done based on:
1. End Users
2. Customer segment and
3. Region based segmentation.
1.4. Regions Covered
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8. 1. North America (USA, Canada and Mexico)
2. Europe ( UK, Italy, France, Germany and others)
3. ROW(South America, APAC , Middle East and other countries).
1.5. Key Takeaways
The research conducted to understand Network Function Virtualization (NFV) markets in different regions of
the globe has revealed valuable insights. Some of the key take away points involve information given below:
1. North America has the highest market share whereas Europe is growing at a good pace.
2. The market share of Network Function Virtualization (NFV) market is growing at an impressive CAGR.
3. Enterprises are adopting Network Function Virtualization (NFV) more compared to Mid Size and Small
Businesses.
4. Telcos companies, in order to provide better service to their customers, are adopting the NFV technology,
the most.
1.6. Key Stakeholders
1. NFV providers: Network Function Virtualization (NFV) providers will be able to assess the market mood
and accordingly develop applications as per the changing requirements of customers.
2. Global Investors: Those investors who look to fund new and budding Network Function
Virtualization(NFV) startups will get clearer picture about the market and its trends.
3. Industry Watchers: Industry and trend watchers are always referred to as trusted advisors who follow
markets. The report would add to their knowledge repository, creating value for their know-how.
4. Network Function Virtualization (NFV) providers across the different regions.
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Executive Summary 02 9

10. 2. Executive Summary
2.1 Executive Overview
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 Asia-
Pacific 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
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11. 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.
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Research and Forecasting 03 12

13. 3.1. Research Methodology
Base Year: 2016
Forecasting Period: 2017 - 2021
3.1.1. Sampling
The leading suppliers of each end-user product categories that were chosen to provide a larger
representative sample.
Purposive unit sampling was adopted for every service segment such as verticals, regions, end-users and
others. This was resorted to, in order to elicit the appropriate inputs with regard to the qualitative growth
aspects of the market.
3.1.2. Secondary Research
The research methodology that was carried out was desk research through various journals, association
reports, and in house database to build a knowledge base on various market service segments, product
categories and industry trends.
Various fact based data was analyzed. Some of the sources included:
a. ResearchFox Knowledge Base:
Previous data on the market has been put through a rigorous and comprehensive analysis to analyze
the current state.
b. Desk Research:
Industry reports, annual reports, press releases, webinars, journals and publication, independent rating
agencies and government statistics.
3.1.3. Primary Research
Primary interviews were conducted among various stakeholders:
Product and service companies
Members of associations and alliances
Subject Matter Experts and Evangelists
Consultants and Strategists
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14. 3.1.4. Industry Information
It was essential to understand the current industry landscape, market dynamics, security ecosystem and
competitor metrics. To estimate the global market, Chief Experience Officers (CXOs), Marketing Heads, Sales
Managers and product stakeholders were interviewed.
3.1.5. Technical Information
In addition to the interviews with leading participants for industry-related information, ResearchFox
conducted interviews with Research and Development (R&D) and Design and Development teams to
understand the current usage of the products by service type and also to find out the emerging trends.
Finally, interviews with suppliers were conducted to cross check the validity of information and also to
understand the emerging trends in the end-user segment.
The detailed methodology for primary research is outlined below.
3.1.6. Primary Interview Questionnaire Design
ResearchFox developed a detailed questionnaire, which was used by the analysts as a guide for their
discussions. This process ensured the collection of all necessary data. The questionnaire was designed to
elicit unbiased industry level data (market size, production, sales, and others), that had check points
(questions such as company level information and their position in the industry acted as check points) to
ensure accuracy of the data. The questionnaire included the following sections:
1. Industry level information
2. Characteristics and Dynamics
3. Company-specific information
4. Market segmentation data
3.1.7. Interview Questionnaire Test and Validation
Following the design of the questionnaire, ResearchFox carried out some initial interviews to verify that the
appropriate market and technology data was generated. After the final design of the questionnaire,
ResearchFox began full scale primary research. Specific companies targeted for primary research interviews
were selected based upon market participation. Higher was the entity's profile, more attractive was the
entity.
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15. 3.1.8. Interview Process
As participants respond in the course of an interview, ResearchFox analysts are trained to move from lower
priority and/ or sensitive topics to increasingly key and/or sensitive topics in response to the interviewee's
behavior. This responsive and reflective interview process, combined with the analysts' ability to discuss the
industry and technical issues in an open and sharing environment, allows ResearchFox to probe for key
data, operations, and competitive information. Multiple contacts within a single organization and with an
individual are often planned and/or staged in order to optimize and complete the information gathering
process.
3.1.9. Research Validation
At a point, when 20 percent of the research interviews and/or data collection had been completed,
ResearchFox consultants evaluated the preliminary findings to assure that up-to-date results are in line with
project objectives. The analyst team analyzed the information from the interviews and information was
validated through a combination of the following validation techniques:
Cross checking with other primary data and previously developed in-house research
Review of secondary information, such as trade journals, annual reports and industry directories
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16. 3.2. Forecasting Methodology
3.2.1. Step-by-Step Methodology for Market Estimation and Forecasting
Market Estimation and Forecast Methodology, 2016
Step Method
1
Understand the market mechanism for the market through structured, systematic and theoretically established
norms of analyzing, designing, introducing and quality assurance of the market estimation
2 Measuring the various market drivers, constraints, opportunities and challenges at regular intervals of time
3 Integrate expert-opinion of discussions in consultation with the ResearchFox Analyst team
4 Market estimation and forecast calculation
5 Delphi method and Causal Analysis used as and when required
6
Rigorous quality check with heads of Research Team, Subject Matter Experts and Consultants before final
publication
Source:ResearchFox
Significance and Importance of the Market Forecast, 2016
Sr. No. Significance and Importance
1 Helps revisit on the company's R&D investments
2 Keeps the Sales and Marketing team posted on the market prospects
3 Strategize investment and expansion plans
4 Improve business planning
5 Helps create business aims and set sales figures within the company
6 Aware of the current market competition
7 Support plans for Merger and Acquisition (M&A)
Source: ResearchFox
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17. 4.1. Sample Table
Network Functions Virtualization (NFV) Market - Outlook (2017-21) Market Revenue
Forecasts by Regions (2017 - 2021)
Market Revenue Forecasts by Regions (2017 - 2021)
Year USA Europe APJ ROW
2016 X X X X
2017 X X X X
2018 X X X X
2019 X X X X
2020 X X X X
2021 X X X X
CAGR X X X X
Source: ResearchFox
4.2. Sample Chart
Network Functions Virtualization (NFV) Market - Outlook (2017-21) Enterprise
Verticals Market Revenue Forecasts
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