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IHS Report: Organizations Expect Big Return from SDN


November 04, 2015

Software-defined networking (SDN) is rapidly improving the capabilities of service providers to successfully operate their data centers, primarily through the simplification of network provisioning as well as automation of core network functionality. Furthermore, SDN deploys
applications much more quickly and facilitates interoperability with existing equipment in order to promote operational efficiency. SDN strategies are primarily employed for data center cloud architecture, automated application deployments and management of hybrid cloud environments.

Global research firm IHS has continued its support for organizations looking to employ SDN techniques with its recent report, IHS Infonetics Data Center SDN Strategies: Global Service Provider Survey. The firm interviewed a wide range of service providers and operators regarding their recent SDN deployments in order to get an in-depth look at what went into that decision as well as the drivers, challenges and reactive strategies encountered during that process. A major focus of the study (and as a result, one of the main reasons for its inception) was on the expected changes to capital and operating expenses as a result of deploying SDN technology.

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IHS found that an overwhelming majority of service providers expect a significant positive return on investment for their respective deployments, with 85 percent foreseeing a decrease in operating expenses within two years from deployment and about half that number expecting a decrease within one. On the other hand, approximately 30 percent of
respondents reported they expect that expenses will stay the same or even possibly increase within the first year; a negligible portion foresaw that trend continuing into the second year.

According to the survey, the top vendors in the SDN space are Cisco, Alcatel-Lucent/Nuage and VMware. All of these companies provide solutions that are notable not only for their functionality and security capabilities, but for their ability to bring about significant reductions in operating expenses and in some cases capital expenses as well through the elimination of physical hardware. The survey’s related literature and real-life examples clearly show that SDN deployments are a solid strategy for reducing expenses and ensuring continued success.




Edited by Kyle Piscioniere

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