SDN/NFV to drive carrier LSO software market to $2.75B by 2019

Rayno Report indicates global operators want to invest in provisioning, orchestration, and support software for dynamic services.

The Rayno Report’s premium research division has released its second report of six planned for 2015, "Service Provider Lifecycle Service Orchestration (LSO) Overview and Market Forecast," which indicates that the market for LSO software could reach $2.75B by 2019. This growth will be driven by the continued rise in SDN and NFV within the carrier infrastructure.

The 33-page report, produced by Rayno Media Inc. and distributed by The Rayno Report (www.raynoreport.com/premium_research) indicates there is strong demand from service providers to increase the agility and flexibility of dynamic enterprise data services. They see the deployment of next-generation LSO software, which handles integrates orchestration, fulfillment, control, performance, assurance, usage, analytics, security, and policy of enterprise networking services, as the way to do that.

The findings of the report are based on a joint survey, “Emerging Dynamic ‘Third Network’ Services & The Role of LSO,” conducted with the MEF. Through the survey and individual interviews, the Rayno Report collected data from professionals at more than 55 service providers around the world.

Some additional findings:

• The LSO market will emerge by merging and integrating technologies in existing Operation Support Systems (OSS), SDN and NFV markets, along with a new class of native LSO software.
• Software Defined Networking (SDN) and Network Functions Virtualization (NFV) will be key drivers of LSO.
• Global operators have expressed skepticism that existing OSS and BSS systems are ready to take on the emerging SDN/NFV landscape, according to the LSO Market Survey.

R. Scott Raynovich, Chief Analyst of the Rayno Report and the author of the report, said the findings of the research were conclusive and powerful.

“Our research indicates the global telecom carriers without a doubt have now ‘seen the light’ in the power of the cloud model and they want to invest in technology that gives them more dynamic provisioning, management, and monitoring of network services,” said Raynovich.

“There communications industry is transitioning toward the delivery of more dynamic connectivity services over more automated and interconnected networks,” said Stan Hubbard, Director of Communications and Research at the MEF. “The MEF is defining LSO capabilities and supporting APIs that will help overcome OSS challenges that stand in the way of realizing the full benefits of SDN- and NFV-enabled networks. Our joint survey with the Rayno Report provides insight into the pace of change and key obstacles to overcome along the way.”

Companies mentioned and/or discussed in this report: Alcatel-Lucent, Amdocs, Anuta Networks, CENX, Ciena, Cisco Systems, Cyan Networks, Ericsson, Glue Networks, Infovista, Netcracker, Oracle, Overture Networks Siaras, UBIqube, and WebNMS.