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1 - SDN DefinedSDN Defined

Software-defined networking creates open network controllers. The definition of SDN is the separation of the “control plane” and the “data plane” from the underlying networking hardware via a new generation of open controllers; flexibility, visibility and agility are added to the network.

2 - The Rise of NFVsThe Rise of NFVs

Network Functions Virtualization (NFV) software will replace appliances. NFV refers to the abstraction of specialized networking functions or services into software.

3 - Market Value for SDN CategoryMarket Value for SDN Category

Companies in the SDN/NFV space are gaining market traction and are expected to create $20 billion in market value. At 30 percent market penetration, SDN alone would be a $10 billion market.

4 - SDN and NFV FundingSDN and NFV Funding

Venture capitalists are pouring money into the SDN and NFV category. Venture capitalists have already poured at least $600 million into the space. Total investment is expected to reach $1 billion.

5 - Acquisitions on the RiseAcquisitions on the Rise

Major vendors are already moving to acquire startups. There has already been $3 billion in aggregate SDN and NFV acquisitions. It is expected that there will at two more $1 billion-plus acquisitions in this space.

6 - Top SDN Acquisitions Thus FarTop SDN Acquisitions Thus Far

The valuations of startups in the space are fairly high, with two deals valued at over $1 billion each. They include VMware’s purchase of Nicera, Brocade’s acquisition of Vyatta, Juniper’s purchase of Contrail, NTT’s buyout of Virtela and Cisco’s Insieme buy.

7 - Open-Source SDN ProjectsOpen-Source SDN Projects

Open source software enables the creation of a “white box” networking market based on x86 servers and merchant silicon. This market includes Beacon (Java), NOX (C++/Python), POX (Python), Floodlight (Java), Maestro (Java), OpenDaylight, RouteFlow and Ryu.

8 - Major Customer Benefits of SDNs and NFVsMajor Customer Benefits of SDNs and NFVs

Customers are embracing the virtualization of networks to achieve IT agility. The benefits include reduced hardware expenses, lower operating expenses from management consolidation, higher levels of IT automation, increased agility for deploying new network services and the development of new types of applications.

9 - Leading-Edge SDN DeploymentsLeading-Edge SDN Deployments

Telecommunications and cloud service providers are generally leading the SDN adoption charge. They include AT&T, Bank of America, CenturyLink, Google, NTT, Telefonica and Verizon Terremark.