NFV & SDN Drive Big Changes at Incumbent Vendors, Heavy Reading Finds

As the telecom equipment market has evolved, it has become clear to NEPs that they must also change, focusing on NFV and SDN offerings, says Heavy Reading Insider

Mar 27, 2014, 09:00 ET from Heavy Reading

NEW YORK, March 27, 2014 /PRNewswire/ -- Structure change of the telecom network equipment market has made it clear that network equipment providers (NEPs) must quickly evolve their businesses, paying close attention to network functions virtualization (NFV) and software-defined networking (SDN) offerings, according to the latest report from Heavy Reading Insider (, a subscription research service from Heavy Reading (

The Future for Telecom Network Equipment Providers examines the driving forces behind the global market for telecom network equipment and related services, analyzing them for their scale of impact and level of uncertainty. It builds three scenarios for the future of NEPs in the global market for telecom equipment, based on the driving forces with the greatest likely impact, but the least certainty about that nature of that impact. The report uses those scenarios to give some perspective on the future for NEPs. Finally, it summarizes the strategies of 12 leading NEPs.

For a complete list of companies covered in this report, please click the following link:

"News announcements during 2013 have suggested that there is significant structural change happening in the market for telecom network equipment," says Danny Dicks, research analyst with Heavy Reading Insider and author of the report. "These events are manifestations of market change in response to big driving forces, and NEPs clearly must respond to pressure, but how can they identify which of the driving forces are most significant."

Telecom operators are faced with an unprecedented range of choices in terms of how to evolve their businesses, Dicks says. "Most NEPs recognize that NFV, SDN and the cloud may alter the nature of their relationships with their customers, although many are outwardly confident that they can retain their places at the top table," he continues. "The restructuring we have seen in NEPs is an inevitable result of the need to reskill to support development in new growth areas, and a result of weakness in traditional core markets. It is likely to be a precursor to further consolidation."

Key findings of The Future for Telecom Network Equipment Providers include the following:

  • Analysis of key driving forces in the network equipment market using systematic frameworks identifies five major driving forces.
  • These driving forces include macroeconomic trends, user service/app demand evolution, demand for improved security, incursion of new service providers and new ways to build and operate networks.
  • Considering alternative outcomes that might be the result of these forces enables several realistic scenarios to be built.
  • The best strategy for NEPs varies by scenario – but most NEPs will have some weaknesses they need to address.
  • Operators and NEPs would both benefit by working more closely together.
  • NFV/SDN and security are game-changing issues: NEPs must develop a credible story in these areas.

The Future for Telecom Network Equipment Providers is available as part of an annual single-user subscription (12 issues) to Heavy Reading Insider, priced at $1,995. Individual reports are available for $900 (single-user license).

To subscribe, or for more information, please visit: For more information about other Heavy Reading Insider research services, please visit:

To request a free executive summary of the report, or for details on multi-user licensing options, please contact:

David Williams
Global Director of Sales, Research
Heavy Reading

Press/analyst contact:
Dennis Mendyk
Vice President of Research, Heavy Reading

About Heavy Reading

Heavy Reading (, the research division of Light Reading, offers deep analysis of emerging telecom trends to network operators, technology suppliers, and investors. Its product portfolio includes in-depth reports that address critical next-generation technology and service issues, market trackers that focus on the telecom industry's most critical technology sectors, exclusive worldwide surveys of network operator decision-makers that identify future purchasing and deployment plans, and a rich array of custom and consulting services that give clients the market intelligence needed to compete successfully in the global telecom industry. 

About Light Reading

Light Reading ( combines its research-led online communities and targeted events portfolio to help those in the global communications industry make informed decisions. is the ultimate source for telecom analysis for more than 350,000 subscribers each month, leading the media sector in terms of traffic, content, and reputation. Light Reading produces targeted communications events and focused one-day conferences each year for cable, mobile, and wireline executives across five continents.


SOURCE Heavy Reading