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64 percent of Asia Pacific use virtualised network functions

Anuradha Shukla | March 9, 2016
Two-thirds of enterprises in the region are at some stage of deployment of these functions.

About two-thirds (64 percent) of enterprises in 14 markets across the Asia Pacific region are at some stage of deployment of virtualised network functions, according to a new report by IDC.

Thirty percent of organisations are implementing or running software-defined networking (SDN) functionality to improve network agility, speed and programmability.

More than 80 percent of respondents felt that network function virtualisaion (NFV) implementation would make network management easier.

This adoption rate was driven by several factors such as rapid economic growth and business expansion, an increasingly mobile workforce, and the Internet of Things (IoT).

"Two-thirds of Asia-Pacific businesses are already engaged in deploying NFV: this dispels misconceptions from the vendor and service provider community that the market is not ready," said Karl Horne, CTO, Asia Pacific, Ciena. "Truth be told, demand is ahead of many vendors' readiness to sell these solutions. The benefits of virtualisation, combined with this tremendous appetite for it, will give service providers who deploy NFV and SDN-based services a clear competitive advantage in 2016."

Advanced markets in NFV

Malaysia, Korea and Thailand were the most advanced markets in NFV deployment.

In these three markets, 93 percent, 91 percent and 90 percent of enterprises, respectively, were either in the early stages of planning and analysis, or in the more advanced stages of strategy.

Businesses in markets such as the Philippines, Japan, Singapore and Indonesia will drive the second wave of NFV deployment in the Asia Pacific region.

Fifteen percent of Asian enterprises in most markets, including Hong Kong and India, said they were looking to their service provider to help improve security vulnerabilities in the network through virtualisation.  

Interest in SDN is also growing steadily year-on-year. About half of Asian enterprises surveyed are aware of it, think about it or likely to implement.

"Asia as a whole is making rapid strides in the adoption and advancement of NFV and SDN. Enterprises have seen the value in agile, programmable and highly scalable network infrastructures that are enabled by NFV and SDN," said Shiv Putcha, associate director, service provider & Connected Consumer Research, IDC Asia-Pacific.


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